Cowabunga System Daily Update: 02/20/07
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Main Trend
Current Trend= It was a very choppy day today. Trend change from down to up, then back down, then back up again....whew!
From 7pm-11pm I only looked for short trades (from the previous trend change candle). From 11pm-7am I only looked for long trades. From 7am-11am I only looked for short trades (again), and after 11am I only looked for long trades (again). It was a very see-saw day fer sure dude!
Today's Surf
Due to the choppy conditions, no Cowabunga signals were generated. It was a major bummer fer sure!
Trade Result: No trades
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Related Posts:
- Cowabunga System Daily Update: 04/26/07 14:12 26 April 2007
- Cowabunga System Daily Update: 06/07/07 13:38 07 June 2007
- Cowabunga System Daily Update: 02/28/07 16:41 28 February 2007
- Cowabunga System Daily Update: 05/08/07 15:35 08 May 2007
- Cowabunga System Daily Update: 09/27/07 13:23 27 September 2007
Archived Comments (6)
Forex Blog: Pip My System
I'm really starting to like this system. I'm just not sure (besides the 4H choppy chart) why you were looking for only short trades after 7:00? The MACD was going positive, the RSI had just crossed the 50 mark and the stochastics was positive (maybe too far over the 50 mark). Do the indicators need to be right on with the black candle stick to make sense? Besides the choppy 4H chart I would have opened a long position here and set my SL at 1.9483. Forgive me if I am totally missing something, I am very new and still demo trading.
The reason is because at the close of the 3am candle, the trend had changed to down on the 4hr chart (marked by the purple candle). Since the rules are to only trade in the direction of the 4hr trend then you should only be looking for short trades at this time. Now obviously the market didn't move down anymore after that and actually went up. But the fact that my trend is still down, I would not be taking any long trades (even though the indicators line up). Now after the 7am candle closes, we've obviously seen another trend change candle. This time the trend is back up. So after 11am ET (the close of the 7am candle) I am only looking for long trades again.
Sweet, that makes a lot more sense. I'm glad I at least had the 15M chart right, didn't I? The 4H chart is so scrambled I really didn't know what was going on. I need to get a chart that will change the color of the candle when the EMA's cross. I wasn't taking into account that the trend "Can't" change until the next candle on the 4H is made. I was ignoring the fact that we need to wait until the trend actually changes on the 4H before trading long on the 15M. I guess I just said that, but anyway... Thanks for the clarification...
On my ibfx mt4 demo i made 47 pips as the 4h trend changed to up at 4am and stayed up. It demonstrates that slight differences in data from different providers can make a big difference sometimes to trading. It all evens out in the long run however as there has been times when you booked a profit but I was unable to enter due to the signals not being right for it on my chart.
That 4am is 11pm your time.
BP, what does the purple candle in your chart signify? Thanks.