The Cowabunga System

[Hypochondriac]

Another question for this system. The gray line on the chart below is the cross over. The yellow line is the 5 EMA the blue line is the 10 EMA it's a 4 hour chart.

So what would I be looking for on the 15m charts? The trend seems to be up, but shouldn't I still be looking to short because the 5 EMA hasn't crossed over the 10 EMA on the 4H charts?

[phil838]

Originally Posted by Hypochondriac

Another question for this system. The gray line on the chart below is the cross over. The yellow line is the 5 EMA the blue line is the 10 EMA it's a 4 hour chart.

So what would I be looking for on the 15m charts? The trend seems to be up, but shouldn't I still be looking to short because the 5 EMA hasn't crossed over the 10 EMA on the 4H charts?

The 4H trend is currently down, so you would be looking for short trades on the 15M chart. For the Cowabunga system it doesn't matter that the trend was 2 days ago, only what it is now.

[Hypochondriac]

Thanks again. Though the last green candle is todays 5am to 9am 4h EST. At that time the trend would have been up for those 4 hours? Or are we supposed to look at more then 4H

[phil838]

Originally Posted by Hypochondriac

Thanks again. Though the last green candle is todays 5am to 9am 4h EST. At that time the trend would have been up for those 4 hours? Or are we supposed to look at more then 4H

Yeah, we're looking at the trend of the 4H chart, not just the trend of the last 4 hours. Individual candles don't make a trend, you can still have upward movement in a downward trend.

[wilts]

Hi there,

I have read through how to set up the Cowabunga system and I am a little confused. I'm not sure when to get in and out. Can anyone shed any light??

Thanks

[im247black]

Originally Posted by wilts

Hi there,

I have read through how to set up the Cowabunga system and I am a little confused. I'm not sure when to get in and out. Can anyone shed any light??

Thanks

1. Re-read the instructions one more time : So You've Finished The School Of Pipsology...Now What? | Forex Blog: Pip My System

2. Look at the 4H-Chart to identifying the general/main market trend -- bullish or bearish (buy/sell)

3. Next. on your M15-Chart, look for exactly where you will buy or sell (based on on general trend you observed on your 4H-Chart)

4. To identify your actual entry point you need to satisfy either the long or short entry criteria as explained in the instructions

4a. If going long (buying) satisfy long-entry rules
4b. If going short (selling) satisfy short-entry rules

5. You need to see your trading platform guide for exactly how to actually buy/sell into a position

6. Make some mistakes! Correct! Learn!

--
Im247Black

[pippy long stalking]

Hi All. I'm about to get started giving the cowabunga system a shot and have a question for those of you who have been using it. I understand the take profit targets are either 0050/0000 or the same as the single-trade risk, but do you always wait for either your target or your stop to be taken out? Do you ever say to yourself, "I just don't see the strength in momentum anymore and, even though I'm only getting X pips and was hoping for more, I think I'm going to bail out here" ?

Also, in addition to the buy/sell indicator, are there any indicators that may be useful in this system for profit taking (beyond setting static targets)?

Thanks and happy pipping

[phil838]

Originally Posted by pippy long stalking

Hi All. I'm about to get started giving the cowabunga system a shot and have a question for those of you who have been using it. I understand the take profit targets are either 0050/0000 or the same as the single-trade risk, but do you always wait for either your target or your stop to be taken out? Do you ever say to yourself, "I just don't see the strength in momentum anymore and, even though I'm only getting X pips and was hoping for more, I think I'm going to bail out here" ?

Also, in addition to the buy/sell indicator, are there any indicators that may be useful in this system for profit taking (beyond setting static targets)?

Thanks and happy pipping

That's a really hard question to answer, because there are good points on both sides of the issue. My opinion is that it depends on what you mean by the word "think."

If by "I think I'm going to bail out here" you mean "oh crap, I'm scared," or "I don't want to lose my profits" then I wouldn't exit early.

On the other hand, if you have the forex experience and knowledge to see a real reason to get out early, then go for it! Just remember that you're now trading an unproven system and the Cowabunga profit records don't apply to you anymore.

In other words, if you're getting out based on hard evidence and experience it's fine, but if you're getting out early based on emotion it's not.

[pippy long stalking]

Good points.

May I ask, since you're not doing cowabunga anymore, what type of trading you are doing now? Just curious.

[phil838]

Originally Posted by pippy long stalking

Good points.

May I ask, since you're not doing cowabunga anymore, what type of trading you are doing now? Just curious.

About half my trades are based on two systems, the Sunday Breakout strategy and the NickB method. The other half of my trades are based on chart analysis such as trendlines, S+R lines, chart formations, etc.

I started trading forex early last year using the Cowabunga system. It's a great system for new traders still learning to trade, but once you get some experience you can make more money with other systems.