Cowabunga System Daily Update: Thursday, 10/06/2016


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Main Trend

Cowabunga Forex System

Cowabunga Forex System

Current Trend

The trend was DOWN the entire day.

Today I only looked for short trades.

News events to watch for today:

Today’s Surf

3:15am 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 1.2712 with a stop at the most recent swing high at 1.2731. Since I was 12 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.2700.

Entry: Short at 1.2712 Stop: 1.2731 Target: 1.2700

4:45am EST– Unfortunately I was stopped out of my trade. (-19 pips)

5:45am 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 1.2713 with a stop at the most recent swing high at 1.2736. Since I was 13 pips away from the nearest 50 or 00 level, I decided to put my initial target at 1.2700.

Entry: Short at 1.2713 Stop: 1.2736 Target: 1.2700

7:00am EST– My target was hit. Price made a clean break so I moved my stop to 1.2700 and set my next target for 1.2650.

8:15am EST– My 2nd target was hit at 1.2650. Since news was coming out at 8:30am EST, I decided to grab as many pips as possible and close out my trade. I got out at 1.2636. (+77 pips)

Cowabunga Forex System

Cowabunga Forex System

 

Trade Result: -19 +77= +58 pips R-Multiple: -1.00; 3.34

News events to watch for Friday:

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

    Hi dear Pip My System,
    I would like to ask you a question about the Cowabunga system, and specifically regarding keep on opening positions (but still having only one position opened at a given time) while I am in the 15m time-frame chart.
    Let’s suppose that the 4h time-frame main trend is UP and I have already opened and (successfully) closed a long trade.
    My question is:
    said that the 4h main trend is still UP (i.e no yet EMA crossover on 4h time-frame), should I keep on looking for a second long signal on the 15m time frame?
    Or should I go back to the 4h time-frame and wait until the next (opposite) 4h EMA crossover?
    Thanks a lot.

    • Francis Lauer

      Dear Pip Coyote,

      You will trade any valid signal in the 15 min. chart according to the main trend at 4h. Let’s say that you did a long trade at 15m, you can/will trade a second, third, forth signal that appear after the end (with or without sucess) of the first trade. You don’t need wait for a trend reversion at 4h. If bullish, you go long; if bearish, you short. This timeframe is important only to dictate if you will look for short or long entries.

      • Pipcoyote

        Thanks a lot Francis. Your answer was really helpful.
        Have a great day!

      • Pipcoyote

        Hi Francis,
        sorry if I bug you again… unfortunately I still have a doubt about the Cowabunga System.
        In the last post (“Cowabunga System Daily Update: Thursday, 10/20/2016”) Pip Surfer says:
        “11:15am EST – Didn’t consider this possible signal because it was close to 12 noon EST.”
        So my doubt and then my question is:
        According to the Cowabunga System’s rules, should I open a position (if of course a signal materializes) in the hours between 12:00pm ET (noon) and 04:00pm ET?
        I know for sure that a rule is to close any open positions at 4pm ET.
        Thanks in advance.