The Cowabunga System

[tonymand]

Originally Posted by daxm

Thanks for the reply. I did misread the MACD reading of the rules.

We are talking about the GBP/USD chart though right? At this moment I have the 5EMA at 1.9733 and the 10EMA at 1.9739. Assuming their values were on opposite sides of each other a few moments ago, wouldn't that indicate a downcross? I fail to see any long indications here.

Sorry for the ongoingness of my posts. I'm really trying to learn this down pat so I can see the correct trends for this system quickly (and accurately).

Must reread the rules DAXM. Trend direction is set by the 4H and confirmed with a cross in that direction on the 15 min

[daxm]

Originally Posted by tonymand

Sorry daxm didnt mean to mislead you, I meant the 4H MAs are crossed long as confirmed by Cowaboi, see my chart

Again more learning for me! I was only reading the 15min chart for crossovers. I thought the 4hr was for general trends (as in the chart sloping up or down). I take it now that I'm to look for crossovers on the 4hr and then confirm on the 15min chart.

Thanks ya'll! Just goes to show it doesn't hurt to ask! I hope to return the favor in the future!

[tonymand]

I will be making my trades off of a 15 minute chart, but I will be using a 4hr. chart to give me my main trend. If my 4hr. chart is trending up, then I will only be looking to go long on the 15 minute chart. On the other hand, if my 4hr. chart is trending down, then I will only be looking to go short on the 15 minute chart. By looking at the main trend first, I will have a better chance for a winning trade by moving along with the current market direction.



4hr. Chart Settings:

5 EMA applied to the close
10 EMA applied to the close
Stochastics (10,3,3)
RSI (9)



Taken direct from the blog. So no you are not looking for a 4H cross but using it to define trend as given by the 5 and 10 EMAs

[daxm]

Originally Posted by tonymand

I will be making my trades off of a 15 minute chart, but I will be using a 4hr. chart to give me my main trend. If my 4hr. chart is trending up, then I will only be looking to go long on the 15 minute chart. On the other hand, if my 4hr. chart is trending down, then I will only be looking to go short on the 15 minute chart. By looking at the main trend first, I will have a better chance for a winning trade by moving along with the current market direction.



4hr. Chart Settings:

5 EMA applied to the close
10 EMA applied to the close
Stochastics (10,3,3)
RSI (9)



Taken direct from the blog. So no you are not looking for a 4H cross but using it to define trend as given by the 5 and 10 EMAs

I sense your frustration with me and I ask your forgiveness of my dull headedness. I am truly trying to understand.

I have read this section several times and I interpret it to mean the trend of the chart (like how the surfer dude is "trending" down on the chart on that same faq page). I guess for me the ambiguity comes from what the term "main trend" really means. Does it mean to read the 5/10 EMAs the RSI and Stoch on the 4hr chart first and then (and only then, strickly speaking) go to the 15min chart for the entry point OR (as I read it) just look at the graph and see how the 4hr is trending then go to the 15min chart for the 5/10EMA, etc?

If my assumption of how to read the 4hr is correct then why have the EMAs, RSI, and Stoch on the 4hr chart in the first place? There doesn't seem to be any rules the speak directly to reading these indicators on the 4hr chart.

Again, thanks for any clarification.

[daxm]

Wow. While I learn from ya'll my position got closed out at the 1.9720 level and then dropped like a stone! It's currently sitting at 1.9702!

I guess I should be glad that it went short long enough to allow me to take a profit before I starts going long.

[tonymand]

Originally Posted by daxm

I sense your frustration with me and I ask your forgiveness of my dull headedness. I am truly trying to understand.

I have read this section several times and I interpret it to mean the trend of the chart (like how the surfer dude is "trending" down on the chart on that same faq page). I guess for me the ambiguity comes from what the term "main trend" really means. Does it mean to read the 5/10 EMAs the RSI and Stoch on the 4hr chart first and then (and only then, strickly speaking) go to the 15min chart for the entry point OR (as I read it) just look at the graph and see how the 4hr is trending then go to the 15min chart for the 5/10EMA, etc?

If my assumption of how to read the 4hr is correct then why have the EMAs, RSI, and Stoch on the 4hr chart in the first place? There doesn't seem to be any rules the speak directly to reading these indicators on the 4hr chart.

Again, thanks for any clarification.

Not frustrated with you at all it is really important to get these things clear. I am glad your trade came off as well. I am short as a result of the break of the Asian session low.
There seems to be little point to the RSI etc on the 4H chart. I have only ever seen PS use the EMA cross which on his X tick programme is denoted as a different coloured candle. The RSI is used on the 15 min although I have stopped using the stoch since the main reason for staying out of a trade seems to be defined by the RSI. However in starting out you should use the rules exactly as PS has them

[stef]

Hi Tony,
in your previous graph presented 2 MA's attached from 4hour graph.How many candlesticks are they?
thanks

[tonymand]

Originally Posted by stef

Hi Tony,
in your previous graph presented 2 MA's attached from 4hour graph.How many candlesticks are they?
thanks

They are at 80 and 160 (the equivalent of 5 and 10 on the 4H)

[Cowaboi]

...waiting for the retracement now to set up the short. The 4hr MAs have crossed signalling shorts only.

[stef]

Originally Posted by tonymand

They are at 80 and 160 (the equivalent of 5 and 10 on the 4H)

Are they simple or exponential?Why they give us different values and different crosses than the original 4hour graph?
sorry for my questions because i'm confused with
thanks