Cowabunga System Daily Update: 09/24/07

If this is your first time visiting this blog, read this first!

Main Trend

Current Trend= The trend remained up the entire day.

Today I only looked for long trades.

Today’s Surf

You can see from the chart below that there were no Moving Average crossovers for any long trades, which means there were no signals at all today.

Trade Result: +0 pips

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  • jaguar

    Hi would it be possible for you tell me significance of 5 ema and 10 ema cross? As in what does it indicate? Why we should only wait till we have a cross. What’s the logic behind it. I understand what 5 and 10 ema is. But don’t understand the logic of cross.

  • jaguar

    Hi would it be possible for you tell me significance of 5 ema and 10 ema cross? As in what does it indicate? Why we should only wait till we have a cross. What’s the logic behind it. I understand what 5 and 10 ema is. But don’t understand the logic of cross.

  • PipSurfer

    Hi Jaguar- The logic of a moving average crossover is that if you can see a change in direction in the short term moving average, then we can most likely catch the beginning of a wave. But you simply can’t take every trade when an EMA moves up and down. You’d be making hundreds of trades a day and would probably lose almost all the time. In order to prevent fakeouts, you add a filter (a longer term moving average). The longer term moving average gives you an idea of what the bigger trend is. Now if you see the shorter moving average crossover the longer moving average, you have a good indication that a trend change might be occuring. If you don’t have a crossover, then you know not to enter because the price may just be making a short term retracement. Hope that helps! Happy trading!

  • PipSurfer

    Hi Jaguar- The logic of a moving average crossover is that if you can see a change in direction in the short term moving average, then we can most likely catch the beginning of a wave. But you simply can’t take every trade when an EMA moves up and down. You’d be making hundreds of trades a day and would probably lose almost all the time. In order to prevent fakeouts, you add a filter (a longer term moving average). The longer term moving average gives you an idea of what the bigger trend is. Now if you see the shorter moving average crossover the longer moving average, you have a good indication that a trend change might be occuring. If you don’t have a crossover, then you know not to enter because the price may just be making a short term retracement. Hope that helps! Happy trading!

  • VonSmeid

    Hello commentators. First I hope my lack of english knowledge wont prevent you to communicate with me.

    My question is. My plan is to trade in short term (1 to 3 hours). Could you please tell me which chart is the best for me to check for moving averages crossovers to figure out the change of trend (5 minute, 1 hour… chart)? I know it is good to check all of them, but is there anything more to say on this subject?!

    Thank you very much.

    Ambroz, Slovenia, EU

  • VonSmeid

    Hello commentators. First I hope my lack of english knowledge wont prevent you to communicate with me.

    My question is. My plan is to trade in short term (1 to 3 hours). Could you please tell me which chart is the best for me to check for moving averages crossovers to figure out the change of trend (5 minute, 1 hour… chart)? I know it is good to check all of them, but is there anything more to say on this subject?!

    Thank you very much.

    Ambroz, Slovenia, EU