Cowabunga System Daily Update: Wednesday, 01/12/11

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Main Trend

Current Trend

The trend was up the entire day.

Today I only looked for long trades.

News events to watch for today :

Today’s Surf

1:15am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending down and MACD was negative and gaining value. This was valid entry.

The entry was at the close of the candle at 1.5640 with a stop at the most recent swing low at 1.5624. Since I was only 10 pips away from the nearest 50 or 00 level (1.5650), I decided to go for the same amount of pips I was risking on the trade, which in this case was 16. This put my initial target at 1.5656.

Entry: Long at 1.5640 Stop: 1.5624 Target: 1.5656

2:00am EST- Unfortunately I was stopped out of my trade. (-16 pips)

2:30am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending down and MACD was negative and gaining value. This was valid entry.

The entry was at the close of the candle at 1.5652 with a stop at the most recent swing low at 1.5622. Since I was 48 pips away from the nearest 50 or 00 level I decided to put my initial target at 1.5700.

Entry: Long at 1.5652 Stop: 1.5622 Target: 1.5700

4:15am EST- My target wasn’t hit by this time. Since news was coming out at 4:30am EST I decided to manually exit my trade. I exited at 1.5674. (+22 pips)

8:30am EST- There was a moving average crossover for a long trade. RSI was greater than 50, stochastics were trending down and MACD went from negative to positive. This was valid entry.

The entry was at the close of the candle at 1.5642 with a stop at the most recent swing low at 1.5581. Since I was only 8 pips away from the nearest 50 or 00 level (1.5650) I decided to go for the same amount of pips I was risking on the trade, which in this case was 61 pips. This put my initial target at 1.5703.

Entry: Long at 1.5642 Stop: 1.5581 Target: 1.5703

11:00am EST- My target was hit. Price made a clean break so I moved my stop to 1.5703 and set my next target for 1.5750.

11:15am EST- Unfortunately I got stopped out at my original target at 1.5703. (+61 pips)

entry2

Trade Result: -16 +22 +61= +67 pips R-Multiple: -1.00 ; 0.73; 1.00

News events to watch for Thursday:

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

    So I know you say not to enter a trade if the RSI or stochastic is already in overbought/sold territory on the 15 minute chart but what about if it is the 4 hour chart wen looking for the trend? Should I wait until the trend changes? Also, do you think it would be ok to look for the trend on a 3 hour cart? I only as because I use Oanda since I’m on a Mac and their timeframes don’t include 4 hour. It goes straight from 3 hour to daily. Thanks for the help. Love the system!

  • jskizzle

    So I know you say not to enter a trade if the RSI or stochastic is already in overbought/sold territory on the 15 minute chart but what about if it is the 4 hour chart wen looking for the trend? Should I wait until the trend changes? Also, do you think it would be ok to look for the trend on a 3 hour cart? I only as because I use Oanda since I’m on a Mac and their timeframes don’t include 4 hour. It goes straight from 3 hour to daily. Thanks for the help. Love the system!