Cowabunga System Daily Update: Tuesday, 12/21/10

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Main Trend

Current Trend

The trend was down until 3am EST. From 11pm – 3am EST, a new trend change candle formed and changed the trend from down to UP.

The trend remained up until 7am EST. From 3am – 7am EST, a new trend change candle formed and changed the trend from up to DOWN.

From 7am EST on out, the trend remained down the rest of the day.

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

From 3am – 7am EST I only looked for long trades.

From 7am – 12pm EST I only looked for short trades.

News events to watch for today :

  • None

Today’s Surf

12:45am EST– There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down but MACD was already negative. This cancelled out the signal and I did not enter.

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 1.5478 with a stop at the most recent swing high at 1.5518. Since I was 28 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.5450.

Entry: Short at 1.5478 Stop: 1.5518 Target: 1.5450

12:00pm EST– My target wasn’t hit by this time. Since it was 12 noon I decided to go ahead and exit my trade. I closed out at 1.5459. (+

entry2

Trade Result: +19 pips R-Multiple: 0.47

News events to watch for Wednesday:

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

    The market is looking pretty flat at the moment – guessing that’s due to the time of year with Christmas just around the corner.

  • Minduagas

    why your MACD look different than mine ? I use MACD(12,26,9) on MT4 and I did enter that losing trade on 12:45am EST because my MACD was positive and losing value.

  • Spinal

    The market is looking pretty flat at the moment – guessing that’s due to the time of year with Christmas just around the corner.

  • borremor

    Hi, I had a similar problem months ago. When I was comparing my charts (& MACD) to that on the cowbunga system.
    My MACD never matched that of the Cowabunga System. I too lost trades

    You are using the indicator ‘MACD’ the standard one. You need to use the ‘MACD_complete” Have a look in your custom indicators list. When you start using the MACD_complete, your MACD will match up with that of the Cowabunga system.

  • borremor

    Hi, I had a similar problem months ago. When I was comparing my charts (& MACD) to that on the cowbunga system.
    My MACD never matched that of the Cowabunga System. I too lost trades

    You are using the indicator ‘MACD’ the standard one. You need to use the ‘MACD_complete” Have a look in your custom indicators list. When you start using the MACD_complete, your MACD will match up with that of the Cowabunga system.