Cowabunga System Daily Update: Tuesday, 07/06/10

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 was down until 4am EST. From 12 midnight to 4am EST a new trend change candle formed and changed the trend from down to UP. After 4am EST, the trend remained up the rest of the day.

Today I only looked for short trades until 4am EST. After 4am EST, I only looked for long trades.

News events to watch for today :

  • 10:00am EST- US ISM Non Manufacturing Index

Today’s Surf

5:45am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending up and MACD was negative and gaining value. This was a valid entry.

The entry was at the close of the candle at 1.5191 with a stop at the most recent swing low at 1.5161. Since I was only 9 pips away from the nearest 50 or 00 level I decided to go for the same amount of pips I was risking on the trade, which in this case was 30 pips. This put my initial target at 1.5221.

Entry: Long at 1.5191 Stop: 1.5161 Target: 1.5221

8:00am EST- Unfortunately I got stopped out of my trade.

9:00am EST- There was a valid signal here but because it was near the 10am EST news event I did not enter the trade.

entry2

Trade Result: -30 pips (NOT INCLUDING SPREAD) R-Multiple: -1.00

News events to watch for Wednesday:

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.

  • FXPJ

    happy to see another post =)

  • TopofthePips

    I’ll second that! Missing the posts but hope you’re enjoying the pseudo vacation (“,)

  • FXPJ

    happy to see another post =)

  • PipSurfer

    Yes, Europe is fantastic but I can never stay away from the markets :)

  • TopofthePips

    I’ll second that! Missing the posts but hope you’re enjoying the pseudo vacation (“,)

  • Dredding82

    Hey sup? i have an indicator and cant find someone that knows MQL to take a look at it……if you could would you please help me find someone that knows how to fix it for me

  • PipSurfer

    Yes, Europe is fantastic but I can never stay away from the markets :)

  • Dredding82

    Hey sup? i have an indicator and cant find someone that knows MQL to take a look at it……if you could would you please help me find someone that knows how to fix it for me

  • ekiden

    I don’t know if this has been discussed before, but I’m just wondering… on the 15 minutes chart, usually you would enter a trade on the histogram decreasing/increasing without looking at the MACD signal line. I’ve noticed that I tend to get fake out on increasing MACD histogram (for a long trade) while the signal line is sloping down. But if I take a long trade along with the MACD signal line slope (ie, sloping up for long), it tends to work out more often than not. Is that the case or it doesn’t really matter.. I just want to know from your general observation. Thank you!

  • ekiden

    I don’t know if this has been discussed before, but I’m just wondering… on the 15 minutes chart, usually you would enter a trade on the histogram decreasing/increasing without looking at the MACD signal line. I’ve noticed that I tend to get fake out on increasing MACD histogram (for a long trade) while the signal line is sloping down. But if I take a long trade along with the MACD signal line slope (ie, sloping up for long), it tends to work out more often than not. Is that the case or it doesn’t really matter.. I just want to know from your general observation. Thank you!