Cowabanga Watch 3/07/07

[xmsr33]

First off, I must apologize for 3 things:

1. I misspelled the name of the system. This has been corrected.
2. I was mistaken in the time frames, and am now useing 3 Hr charts,(the closest I can get on Oanda).
3. Missing yesterday's update, I had a final in Economic development, but it is no excuse.

That being said here is the report on all Major currency groups that are approaching Cowabanga entry points:

US/JPY:

Stochastic at 43 and dropping, with RSI at 52 an also on its way down. MCAD shows signs of convergence and the 5 day EMA is litterly one or two candles from crossing under the 10 day EMA.

A good short oppertunity of the dollar against the yen may present itself today.

US/CHF:

Stoch at 62 and headed down, RSI at 56, will have to go beneath 50, while MCAD is pretty much converged and preparing to diverge on the downside. The 5 day EMA is also 1-2 candles away from a negative crossover of the 10 day EMA.

THe RSI will have to drop a bit, but most likely if the price action is negative enough for a 5 day EMA crossover, the RSI should be under 50 by then.

Good short oppertunity may present itself today.

EUR/CHF:

Almost identical signals to US/CHF. RSI will also have to drop, but a good short oppertunity looms.

And for those that doubt the efficacy of this system, here is some back testing for US/JPY during the month of January.

As you can see 173 pip profit off of 9 trades, 5 being profitable. Granted I was unable to use the prices derived from 15 minute chart entrance points but overall the power of the system is clear, as the Cawabanga blog's history of success with the cable indicates.

Good luck to all

[xmsr33]

US/CAD has just crossed into a potential breakout. Current 15 minute chart is also in a break out, so wait until it swing positive before entering.(Or since MCAD is headed higher and RSI, positive and headed higher, now could also make a good entry, I will follow both methods and report the results).

Also, US/CHF is finally breaking down, although the 15 minute chart is about to cross over in the positive direction. Here there is no choice but to wait for the 15 minute trend to reverse. I shall report when it does.

Good luck to all.

[xmsr33]

As of 7:30 PM eastern US/JPY has crossed into negative

As is GBP/US and EUR/USD, and EUR/CHF and CHF/JPY and CAD/JPY and AUS/JPY as well as AUS/US is about to cross under.

Unfortunately all 15 minute charts are either about to cross up or are oversold.

However within the next few hours 7 good trading oppertunities will open up!

Personally this is very exciting.

I am down 4 pips of US/CAD long and up 33 pips on US/CHF short.

Good luck to all and good pickings!

[xmsr33]

CHF/JPY may be ready for ready for fresh breakdown.

15 minute chart shows signs of being heavily overbought in addition to being at the top of the bollinger bands.

Stock is at 86, RSI at 56, both head south. If MCAD reverses then a good entry will present to take advantage of the fresh short breakdown in the 3 hour charts.

I will report if this happens within the next 8-10 15 minute bars.

Good luck to all.

[nickelnm1]

I would love to use the Cowabunga system on the USD/JPY and actually tried it out today on the EUR/USD, but exited my trade at a loss.

I guess I am not real clear how long should the trade stay open using this system?

Also, should all THREE indicators be showing the same thing? Is two out of three okay??

So, how did your trades go last week -- please post your pips (+ or -)