Cowabunga System Daily Update: Tuesday, 05/04/2010

The CFTC may be changing the rules for retail traders in the US. This affects many of us in a negative way and we need your help getting our voices heard.

Read more of the details

I can not find better words to describe my position on all this than those from Andrei Pehar, Chief Currency Strategist at fxKnight.com.  

Andrei says: "I am not opposed to regulation nor regulatory agencies. But that regulation needs to be fair, transparent, and open to public input. Otherwise it becomes corrupt and self-serving. Sure high leverage can get you into trouble if used thoughtlessly. Sure hedging when not done properly turns one loss into two. But I believe the cure is EDUCATION, not restricting what people can and cannot do with their investment decisions. Guide, don’t dominate – government was invented to protect people and their property, not to limit their potential.

We at BabyPips.com disagree with the CFTC proposal.

If you disagree as well, you may submit your comments to secretary@cftc.gov.  

Include “Regulation of Retail Forex” in the subject line of the message and the identification number RIN 3038-AC61 in the body of the message. Please, help us to spread the word!

I think this is a very important matter that affects us all, and we should try our hardest to ensure that things will be done for the best of the trading community.

If this is your first time visiting this blog, read this first! 

Main Trend

Current Trend

The trend stayed down the entire day.

Today I only looked for short trades.

News events to watch for today :

  • 4:30am EST- UK Purchasing Manager Index Manufacturing
  • 10:00am EST- US Pending Home Sales

Today’s Surf

1:15am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD went from positive to negative. This was a valid entry.

The entry was at the close of the candle at 1.5232 with a stop at the most recent swing high at 1.5264. Since I was 32 pips away from th nearest 50 or 00 level, I decided to put my initial target at 1.5200.

Entry: Short at 1.5232 Stop: 1.5264 Target: 1.5200

3:15am EST- My target was hit. Price made a clean break so I moved my stop to 1.5200 and set my next target for 1.5150.

3:30am EST- Unfortunately I got stopped out at my original target at 1.5200.

7:30am EST- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down and MACD was positive and losing value. This was a valid entry.

The entry was at the close of the candle at 1.5170 with a stop at the most recent swing high at 1.5204. Since I was 20 pips away from th nearest 50 or 00 level, I decided to put my initial target at 1.5150.

Entry: Short at 1.5170 Stop: 1.5204 Target: 1.5150

8:45am EST- My target was hit. Price didn’t make a clean break so I took my final profit. I exited at 1.5151.

entry2

Trade Result: +32 +19= +51 pips (NOT INCLUDING SPREAD) R-Multiple: 1.00, 0.55

News events to watch for Wednesday:

  • 4:30am EST- UK Purchasing Manager Index Construction
  • 8:15am EST- US ADP Employment Change
  • 10:00am EST- US ISM Non-Manufacutring Composite

For a complete list of news events check out our Forex Economic Calendar.
Questions? Read the Cowabunga FAQ.

Want to discuss the Cowabunga System? Visit our Forex Forums.

  • drewpac99

    What chart software do you use?

  • mabidashraf

    xtick is the chart software

  • kulvadee

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    Your website is great. I has learnt a lot from here. Thanks so much for sharing your knowleadge with us. I appreciate it a lot.

    I finally finish babypip school and found your system. This system is very easy to understand and very effective. I have tried on my demo account and it’s wonderful.

    There’s a link on one of the forums or blogs (could not remember :) ) which one of the members produced Cowabunga system indicators setting to download to Meta Trader 4. I had tried to download but not successful and would like to ask if anyone could tell me the process how to download the indicators to Metatrader 4 would appreciate a lot. :)

  • drewpac99

    What chart software do you use?

  • mabidashraf

    xtick is the chart software

  • kulvadee

    Regarding Tools to check news calendar, I live in Australia sydney time, which time zone should I choose?
    Thanks

  • thedentist

    Hi

    Lets assume the 4H chart indicates we should only be taking sell trades, but RSI and MACD are both in over-sold territory (on the four hour), can we still take a trade if a valid entry occurs on the fifteen minute chart or should we sit on the side lines until they return to normal levels?
    Thanks for your time.

  • kulvadee

    Regarding Tools to check news calendar, I live in Australia sydney time, which time zone should I choose?
    Thanks

  • thedentist

    Hi

    Lets assume the 4H chart indicates we should only be taking sell trades, but RSI and MACD are both in over-sold territory (on the four hour), can we still take a trade if a valid entry occurs on the fifteen minute chart or should we sit on the side lines until they return to normal levels?
    Thanks for your time.

  • PipSurfer

    Kulvadee- I’m not affiliated with any of the posts regarding the MT4 indicator and the Cowabunga system. You will probably have better luck getting your question answered if you post it in the forum/thread. Regarding your timezone, I believe Sydney Australia is currently +10. I could be wrong though so I would double check.

    thedentist- You can still enter short trades even if RSI and MACD are oversold. As long as a new trend change candle doesn’t form then you are allowed to take any trade in the direction of the current trend, regardless of the indicators.

  • PipSurfer

    Kulvadee- I’m not affiliated with any of the posts regarding the MT4 indicator and the Cowabunga system. You will probably have better luck getting your question answered if you post it in the forum/thread. Regarding your timezone, I believe Sydney Australia is currently +10. I could be wrong though so I would double check.

    thedentist- You can still enter short trades even if RSI and MACD are oversold. As long as a new trend change candle doesn’t form then you are allowed to take any trade in the direction of the current trend, regardless of the indicators.

  • mattman2345

    hi kulvadee,

    i live in Sydney Australia also, PipSurfer is correct chose AEST 10+

    Cheers,
    Matt

  • kulvadee

    Thanks, PipSurfer & Matt .

  • mattman2345

    hi kulvadee,

    i live in Sydney Australia also, PipSurfer is correct chose AEST 10+

    Cheers,
    Matt

  • kulvadee

    Thanks, PipSurfer & Matt .

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