The Cowabunga System

linalm · January 11, 2008, 6:31pm

[I]Well … it shows that I am a newbie[/I] :). Thank your for all the wonderful posts that you and many others place here. I am learning A LOT through them.

Have a great weekend.

hypnos63 · January 22, 2008, 6:11am

hi

how do you decide which is ‘the trend change candle’ on the 4hr chart using the cowabunga system? what are the criteria?

please forgive me if this isn’t the right thread.

thanks

hypnos63

daxm · January 22, 2008, 8:59am

Tony,

You didn’t go up in smoke? Happy 1,000+ post!

Cowaboi · January 22, 2008, 12:48pm

The 4hr MAs crossing (on close) take precedence in determining trend change. If the RSI does not confirm (direction) at the time of the cross and/or the stochs are flat or not pointing in the trend change direction, then the MA cross is void (in terms of signalling trend change).

Hope this makes sense to you.

hypnos63 · January 22, 2008, 7:51pm

thanks cowaboi. i get it and it helps a lot.
hypnos63

BillB · January 23, 2008, 10:41am

Forgive me if these questions have been answered.

I recently read on here that the main trend change (4H cross) is invalid if the stochastic, RSI and MACD are not in the correct condition when it occurs. At least, that was my interpretation.
Does this trend remain invalid as long as it lasts?

For example, there was an upward 4H cross of the MAs on Jan. 16. On my chart, the Stochastic appears flat and the MACD was positive before and after the cross.

This long “trend” remained in effect for two days.
Should those two days have all have been no trade days?

In other words, if the 4H cross is bogus, do we stand down until another trend change?

I have seen it written that no trades should be taken before Midnight, New York time.

I have not seen how late the latest trade should be taken.
I have been cutting it off at Noon New York time. Is this correct?

Thank you.

PS- I got stopped out on a long trade that occurred at 0700 GMT this morning. Was there a “system” reason to not have taken that trade?

Thanks again.

Cowaboi · January 23, 2008, 5:39pm

BillB:

Forgive me if these questions have been answered.

I recently read on here that the main trend change (4H cross) is invalid if the stochastic, RSI and MACD are not in the correct condition when it occurs. At least, that was my interpretation.
Does this trend remain invalid as long as it lasts?

For example, there was an upward 4H cross of the MAs on Jan. 16. On my chart, the Stochastic appears flat and the MACD was positive before and after the cross.

This long “trend” remained in effect for two days.
Should those two days have all have been no trade days?

In other words, if the 4H cross is bogus, do we stand down until another trend change?

I have seen it written that no trades should be taken before Midnight, New York time.

I have not seen how late the latest trade should be taken.
I have been cutting it off at Noon New York time. Is this correct?

Thank you.

PS- I got stopped out on a long trade that occurred at 0700 GMT this morning. Was there a “system” reason to not have taken that trade?

Thanks again.

1/…in this instance no trades are taken in the direction of the MA cross (trend change signal), within the next 4 hours. If, at the end of this 4hr period, the MAs remain crossed then entries are made in that direction, as MA crosses (on the 4hr) are given precedence over the RSI/MACD/Stochastic indicators.

2/. PipSurfer suggests entering trades no later than 12 noon (EST).

PS - i’ll let you work that one out

jomni · January 28, 2008, 9:38pm

lately, i have a dilema.

I don’t have 4Hr in my charts (FXCM) so I use 1Hr.

The problem I have is that the crossover in the 15min happens before the crossover in 1Hr. So when the 1Hr crosses eventually, it’s already midway the trend of the 15min. When do I enter? Waiting for a consolidation and getting a cross in the 15min may take time and may not happen at all.

I guess patience is the key and 4Hr seems to be ideal. 1Hr too short and lagging. Might also consider daily trends.

Any suggestions?

BillB · January 28, 2008, 9:50pm

I would download a demo MT4 from FXDD or Alapri or IBFX. I recommend Alapri because their demo takes forever to expire.
Use their charts. Place your orders on your FXCM platform.

jomni · January 28, 2008, 9:54pm

Hmmm but aren’t there differences in pricing?
Anyway this is just paper trading. IBFX seems to be a good shop. I will check them out soon.

BillB · January 28, 2008, 10:19pm

Differences in pricing?
The demo is free, if that’s what you mean.

jomni · January 28, 2008, 10:26pm

I was talking about pricing quotes.
Different brokers have different quotes so the charts and indicators will not be exact. But of course we’re trading the same market.

BillB · January 28, 2008, 10:33pm

It wont make any difference. It’ll even out.
I do it all the time.

jomni · January 28, 2008, 10:58pm

Ok thanks for the tips.

monk · January 29, 2008, 10:57pm

Hi guys…i always see u guys toking about New releases like nfp…interest rate cut…and etc…but which website you guys refering to?.. tq

Cowaboi · January 30, 2008, 4:29am

I use the one on Forex Factory and filter on GBP and USD Red / Orange reports - ie the reports most likely to move price.

monk · January 30, 2008, 8:43am

wao tq so much…all the informations are there…tat really answered why the GBP/USD goes down on 8:15EST…

jomni · January 31, 2008, 1:20am

Had a nice cowabunga trade today. too bad i sold early. didn’t reach the 00 target.

tonymand · January 31, 2008, 2:28am

Cowabunga is for GU only, no data provided for its relevance to EU

jomni · January 31, 2008, 2:44am

I know. But testing it out in every pair.