It is pretty vague about Main Trend on 4HR. The picture there may be more helpful.
You have to wait for the 4HR candle to close that has the EMA crossover.
For an up example, EMAs cross up AND the RSI has to be above 50 with STO heading up and crossed up (fast over the slow).
If ALL these conditions are not met you can assume the prior candles trend is still in effect until the next candle closes and you reasses all the indicators.
The Main trend is definitly lagging. It seems to keep us out of alot of trades instead of being overly aggressive and getting into bad trades.
Hi, I’m new to forex trading. The Cowabunga System is interesting and seems simple to use.
If I understand correctly you have to enter as soon the moving averages cross correct? You can’t wake up in the morning notice the averages crossed sometime in the night and enter then?
So If I’m correct a few days or maybe even week or two can pass before your able to enter at the cross?
You enter at the close of the candle after a crossover.
Most days have at least one entry, if you’re not seeing entries for weeks at a time there is something wrong with your charts. Are you looking on a 15 minute chart?
On the 15 minute charts I see the cross over. But the system says there should be a cross on the 4 hour chart as well? The last cross on the 4 hour chart was June 8th around 1pm.
The 4H crossovers just identify the long-term trend. If the 4H trend is up, then you’re only looking for long crossovers on the 15m chart, and the opposite for short crossovers.
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.
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.
[B]2.[/B] Look at the 4H-Chart to identifying the general/main market trend – bullish or bearish (buy/sell)
[B]3. [/B]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)
[B]4.[/B] To identify your actual entry point you need to satisfy either the long or short entry criteria as explained in the instructions
[B]4a. [/B]If going long (buying) satisfy long-entry rules
[B]4b. [/B]If going short (selling) satisfy short-entry rules
[B]5. [/B]You need to see your trading platform guide for exactly how to actually buy/sell into a position
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)?
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.
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.
My first cowabunga trade was at 9:00 am est today and is not going very well at all. I traded EUR/USD on a buy signal and so far it’s down 51 pips with 28 pips to reach my stop.
I know this is only one trade, but the problem I see with this one, is that the EMA crossover occurred at the top of short-term up trend. So when the signal came in (as all other indicators lined up), it turned out the trend was peaking. Shortly after getting in, everything went south and even the 4h chart is heading towards a down trend. Not to mention that I’m risking 77 pips to gain 21!
It aint over yet, but so far it’s not looking too good. Screenshot attached. Besides just chalking this up to one of those inevitable losses, anyone see anything I did wrong?
