Since I’m not trading the Cowabunga system as outlined by the author. I would like to try my luck again… Please take what I put down here with a grain of salt since I blew up one account because of lack of money management and discipline. I will be focusing mainly on GBP/USD as pair of choice. I plan on taking a stance as a trader or day/swing trader. I have not streamlined my methods to the madness and so I’ll be experimenting with my intent to keep it as simple as possible. At this time I don’t dare put my real money in play as my confidence level is not up yet. I did mange to deplete my first account because of not having a grasp on position sizing and this took my out of the game quick.
Now I have a defined risk of 1% and each position size will be built based off this. Home runs are great, but base hits wins the ball game. I felt is might be best for me to post here instead of in the Cowabunga thread. This way I’ll not take up to much disk space from that thread. This will help keep that thread in tune with the authors intent.
Feel free to jump in and criticize me as long as it is constructive. I’m a big boy and can handle it.
This will be how my charts are set-up as per a cowabunga template I found and ASI added to 4h-1h charts. I plan to also pay attention to the daily and weekly to gauge what is going on longer term.
Between you and me (and tens of hundreds of others) I don’t care for the Cowabunga system. Not against him or his method; I don’t care for the time he trades. He frequently misses MANY good and substantial trades. I’ve been following for many months now. And I’m sure he makes some money…I don’t know where he lives. Perhaps that is his only timeframe or window to trade.
I’ve been using the PSAR/Bollinger system casually called IcyCloud. It uses longer time frames, keeps you unglued from the computer and takes some of the guesswork out of trading. I’ve been successfull so far. Have a look at the thread.
Good luck. Looking forward to your progress.
S.
Greetings didjerdu, glad your finding success with your system. Well I’m not trading Cowabunga per say. I do see the simplicity in it. PSAR is something I might look into but for now I need to focus on what I’m trying to put together.
15 min put in lower high and price was rejected. RSI below 50
4h remains in uptrend but possible evening star painted. Thus far main trend is still up.
1h is in pullback mode and ASI shows breach of support.
I see a mixed bag and so no action was taken.
Daily:
Not sure if this guy is bumping into resistance here or not. My bias is still bullish down to last pivot or around the 1.9692 area. Chart pivot I see is a 1.9900.
First observation regarding the ema’s from the cowabunga templete. It appears to me when you see good daylight or space between the ema’s you have a strong trend. This tells me to look over the 1h-4h chart for targeting. When the ema’s are tight this seems to indicate choppy conditions. Notice the good separation in the ema’s on the 1-4h charts. Now for today’s action you can even see a nice spread out in the 15m. All 3 charts were screaming long. Anyway I bet most know this and anyway I thought I’d share my first observation now does it have any merit?
Second observation I need to look into this some more but here is something I’m looking at. It seems when the sto’s get a 80 band slip off the 4h that we have a high probability of a test on the 10ema. This is a higher risk play because the ema’s will not have crossed at this time. Anyway I don’t know if this observation carries any merit or not.
Stoch adjustment and trying 15,3,5 to smooth out this indicator. Currently I see a fractured set up as the 4h is testing the 80 band, 1h is steep drop and 15m trying to turn up. This suggest caution moving forward to the long side.
I need to go to work and so will not open any trades. I’m looking to see if the sto’s on the 4h drop under the 80 band and test the 10ema.
Well I just got home from work and took a short in gbpusd @ 1.9842 with target @ 1.9777 risking 30 pips or R mulitiple @ 2.16. Looking to see if the drop under the sto 80 band will send price to retest 15ema.
#5 was a quick bump play off 15m on sto turning up. I had 10 pip stop off entry @ 1.9826. Anyway it is a R+1 and so I�ll take it. I think that is it for the day. Ema�s are in convergent mode on 15m. 60M depict nice daylight and testing price resistance.
The 4h chart is showing convergence of the ema�s suggesting use caution.
#1 +30 R 1.25 #2 -35 R- 1 #3 +118 R+1 #4 +8 R+.02 #5 +10 R +1
Hey Cadaritek, good job! Well to answer your question on divergence I must admit that it is and isn’t. I look over 3 time frames and get a bias to get long or short. Yes the indicators help with this but price action and support and resistance play a big part. I’m not using the Cowabunga system per say just the template to form my way. Now I’m new to this method and so I’m not sure I could explain my mindset just yet.
Well seems as if I missed today’s run… The 4h turned back up and might test 4h resistance. 1h turned up and currently in overbot mode, same with the 15. Notice the nice daylight in the ema’s. Ths indicates nice trend. For now I’ll do nothing until I see a possible play. Being late to the party normally means a loss for me in the past.
#6 went short @ 1.9917 and 1.9915 with 20-22 pip stop targeting � @ 10ema from 1h @ 1.9897 and other � off 1h 15sma @ 1.9861. If first tgt gets hit stop will be moved to break even
First order looking for R1
Second looking for R2.4
#7 We took a short off the 1h chart @ 1.9871 with R1 37 pips away. Should this trade work we will evaluate tgt, but for right now we are looking for a R1
