Cowabunga 4 Hour Stochastics

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1

Hi All,

I’m new to Forex and I’ve been trialing the Cowabunga system for about three weeks now.

My question is in relation to the 4 Hour Stochastics, which always discourage me from investment. I usually find that when the other conditions are met (EMAs crossing, RSI < or > 50), the Stochastic has already gone above 80 or below 20.

I use the IG trading platform, and it sometimes looks as though my stochastics look different from Pipsurfer’s data. They are set up as (10,3,3) with my limits at 80 and 20 but there’s not really any more options. Not sure if anybody else uses IG and has encountered this issue?

I noticed also on the Cowabunga guide that the chart for 4 Hour period being in Overbought and Oversold Territory yet this area is highlighted as “Only look for Long Trades” or “Only look for Short Trades”. Why is this? Is the direction of the stochastic more important than whether it is overbought or oversold?

I hope my question makes sense, I guess I feel like I am missing out on some trading opportunities because something isn’t quite right here. I’d appreciate any help you can offer.

Cheers!

3

I too am using the Cowabunga system but don’t use any indicators on the 4H chart. What I do is look at the overall direction of price. If it’s going down from left to right, I look for short trades. If it’s going up from left to right I look for long trades. If it’s ranging from left to right I suppose I’d take all or none lol

You don’t need indicators to determine the trend on a 4H chart. Your eyes and mind can figure that out easily.