Cowabunga System Daily Update: Monday, 11/15/10

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Main Trend

Current Trend

The trend was up until 3am EST. From 11pm – 3am EST a new trend change candle formed and changed the trend from up to DOWN. After 3am EST, the trend remained down the rest of the day.

Today I only looked for long trades until 3am EST. After 3am EST, I only looked for short trades.

News events to watch for today :

Today’s Surf

6:15am 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 1.6070 with a stop at the most recent swing high at 1.6112. Since I was 20 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.6050.

Entry: Short at 1.6070 Stop: 1.6112 Target: 1.6050

6:45am EST- My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.6052. (+18 pips)

10:15am 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 1.6078 with a stop at the most recent swing high at 1.6123. Since I was 28 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.6050.

Entry: Short at 1.6078 Stop: 1.6123 Target: 1.6050

11:00am EST- My target was hit. Price did not make a clean break so I took my final profit. I exited at 1.6053. (+25 pips)

entry2

Trade Result: +18 +25 = +43 pips R-Multiple: 0.42; 0.55

News events to watch for Tuesday:

For a complete list of news events check out our Forex Economic Calendar.
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  • jsd1004

    Can you give an exact time you exited and what influenced your decision to exit at that time considering both limits were triggered yet the candles closed significantly higher. What would you have done in the event of a ‘clean break’?

  • jsd1004

    Can you give an exact time you exited and what influenced your decision to exit at that time considering both limits were triggered yet the candles closed significantly higher. What would you have done in the event of a ‘clean break’?

  • PipSurfer

    My threshold for really considering to exit is if my target is hit and the price retraces back 5 pips. If I see it kind of teetering that level (also looking at indicators on 5 min chart) then I will exit. I can’t really put a hard rule on it because most of it now is based on my “feel” for the Cable. I trade it almost exclusively and it’s something that has kind of developed over the years. But that is a rough guide to help filter your exits. Hope that helps.

  • PipSurfer

    My threshold for really considering to exit is if my target is hit and the price retraces back 5 pips. If I see it kind of teetering that level (also looking at indicators on 5 min chart) then I will exit. I can’t really put a hard rule on it because most of it now is based on my “feel” for the Cable. I trade it almost exclusively and it’s something that has kind of developed over the years. But that is a rough guide to help filter your exits. Hope that helps.