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! 
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.
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.
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
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)
…waiting for the retracement now to set up the short. The 4hr MAs have crossed signalling shorts only.
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
Not sure what you mean by different crosses. There may occasionally be slight differences because of the different closing times. I prefer to have it all on one graph but there is nothing to stop you having the 4H chart open with the MAs on them. The only time it will make a difference is at the time of the 5/10 cross on the 4H since this is based on the candle close. I dont trade the Cowabunga but follow it closely and havent noticed any significant differences from PS results. As cowaboi said in his post there is now a cross down occurring and so shorts are on. If I was trading this I would stay out as the market is so choppy but that isnt part of the system
to Tony,
I mean that i have different crosses in 4H with the 5 and 10 EMA’s than the 15M with the 80 and 160 EMA’s.Which is valid?
thanks
The difference is 30 mins, see attached charts. PS uses the separate 4H but as I have already explained I have neve known it to make a difference though one day it surely will
Thanks, Cowaboi. If you enter take-profit orders at the time your trade is executed, how can you move the target to a new level when your 1st target is hit? … Isn’t your trade automatically closed once your first target is hit? … Or is it that your take-profit order is placed to a level that is far away from your real target? If so, what are your rules for this?
Thanks in advance.
…around the cowabunga rules, I’m looking into how the method interacts with fibs and their extensions, defined by the high/low range just before cowabunga entries. Today might be a typical example, although this latest nudge up is less than convincing and I may yet have to redraw from a lower low, before the next short entry arrives.
I trade cowabunga through Oanda and their first extension is 61.8, i’d prefer to set an initial target of the 38.2
Daedalus’ fib thread is an excellent read and is full of useful trade management tips as well as a well honed fib trading strat…well worth a read if you haven’t been there yet.
Two other things that thread followers might like to think about. There is a delay in the 4H turning so one of the weaknesses is that for awhile the Cowabunga tracks the 15 min in the wrong direction. I have been looking at peaks and troughs on the 15 min to change trade direction earlier than the actual 4H cross. Secondly there are many losses at times like this when the market is choppy so considering staying out for a while is also worth a thought
I have been using multiple orders, but with two orders as an example, the 1st lot would have a closing order attached to be taken off at the target or initial stoploss level. The 2nd order would just have the initial stoploss order and once price reaches target I watch for a clean break. If there is one, the stop of this lot is moved up to the target.
Having said this, I tend to agree with Daedalus’ sentiments (in his thread) and will be moving to an all in, all out approach for a while to see how it compares.
Agreed. If in doubt, stay out.
hi, can someone help me by telling me what ‘indicator displacement’ on the cowabunga indicator refers to? if you click on ‘inputs’ in the indeicator, you will find ‘indicator displacement’ there, along with a set of true/false values. what does indicator displacement 'refer to? and how can i use it?
i notice that ‘pip my system’ blog neither answers my questions or posts my comments which really are just questions. can anyone here please help me?
I trade manually so can’t help directly. The Cowabunga MT4 thread might be worth a shot, if you haven’t already posted there.
One more question Cowaboi … So that I better undestand your multiple-orders approach, regading your [U]2nd order[/U]:
[ol]
[li]Do you enter it at market price at the same time as the 1st order but without a take-profit order attached to it? OR[/li][*]Do you enter it as an entry order instead with an entry price equal to the take-profit target of the 1st order?[/ol]Thanks again for your assistance.
