Cowabunga System Daily Update: Wednesday, 01/04/09

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Main Trend

Current Trend= The trend remained down the entire day

Today I only looked for short trades.

News events to watch for today :
  • 8:30am EDT- US Retail Sales

Today’s Surf

4:15am EDT- There was a moving average crossover for a short trade. RSI was less than 50, stochastics were trending down, but MACD was already negative. This cancelled out the signal and I did not enter.

entry2

Trade Result: +0 pips R-Multiple: N/A

News events to watch for tomorrow :
  • 8:30am EDT- US PPI; Unemployment Claims
  • 10:00am EDT- US Philly Fed Index

For a complete list of news events check out our News Section

Questions? Read the Cowabunga FAQ.
Want to discuss the Cowabunga System? Visit our Forums.
  • markr

    Hi Pip Surfer,

    I’ve had a look at the MACD you are using and think the settings on it are (5,13,1) which are different to the ones I have set up (12,26,9) and are giving quite different signals.

    I think there are some others who have posed similar questions.

    Could you let me know what the correct settings are for the
    MACD?

    Thanks & Kind regards

    Mark

  • Hotdog

    Hi Dude,
    I do not understand why sometimes you say the MACD was already positive or negative in the same bar as the crossover and sometimes you focus on the previous bar of MACD for the crossover candle.

  • Hotdog

    Sorry Dude,
    I forgot to quote this text which is in your system:
    “MACD histogram must go from positive to negative OR be positive and start to decrease in value. (We want to catch trends early so the MACD histogram must be positive)”

    That’s why I think today you had a valid entry.

  • markr

    Hi Pip Surfer,

    I’ve had a look at the MACD you are using and think the settings on it are (5,13,1) which are different to the ones I have set up (12,26,9) and are giving quite different signals.

    I think there are some others who have posed similar questions.

    Could you let me know what the correct settings are for the
    MACD?

    Thanks & Kind regards

    Mark

  • Hotdog

    Hi Dude,
    I do not understand why sometimes you say the MACD was already positive or negative in the same bar as the crossover and sometimes you focus on the previous bar of MACD for the crossover candle.

  • Hotdog

    Sorry Dude,
    I forgot to quote this text which is in your system:
    “MACD histogram must go from positive to negative OR be positive and start to decrease in value. (We want to catch trends early so the MACD histogram must be positive)”

    That’s why I think today you had a valid entry.

  • 4xbaby

    Hi Dude,
    Thanks for all your posts and helping us out with trading. Could you please define what you mean by a trend change candle? I’ve not found any explaination in your FAQs,or the system rules.
    Many thanks,
    4xbaby

  • hafizam

    Hello Dude,

    I think Markr is correct as I too has never seen these 3 indicators ( Rsi,Stoch & Macd line up )The Rsi & Stoch did headed the same direction but the Macd went the other way.I have been monitoring chart of all time frames but the Macd never run in line with those Rsi & Stoch thus never trade anything since I put it up month ago.Hope you can explain on the MACD setting again wheather that ( 5,13,1)are corrent.
    Appreciate it
    hafizam

  • 4xbaby

    Hi Dude,
    Thanks for all your posts and helping us out with trading. Could you please define what you mean by a trend change candle? I’ve not found any explaination in your FAQs,or the system rules.
    Many thanks,
    4xbaby

  • hurtzi

    4xbaby: a trend change candle is the candle where 5 and 10 ema crossed. you would still have to look whether macd, stoch and rsi are correct (regarding the system). the visualisation by coloring the trend change candle is a feature of pip surfers platform (xtick) and not available in most free platforms i know.

    i hope this helps – please correct me if i’m wrong.

  • hurtzi

    i’m sorry: for a trend change candle, defining the h4 trend, you wouldn’t have to look for macd, stoch and rsi in pip surfers system – the trend change candle just defines the trend (that decides whether he goes only long or short). the above mentioned indicators are mainly for m15. still, the coloring is a feature of xtick.

  • hafizam

    Hello Dude,

    I think Markr is correct as I too has never seen these 3 indicators ( Rsi,Stoch & Macd line up )The Rsi & Stoch did headed the same direction but the Macd went the other way.I have been monitoring chart of all time frames but the Macd never run in line with those Rsi & Stoch thus never trade anything since I put it up month ago.Hope you can explain on the MACD setting again wheather that ( 5,13,1)are corrent.
    Appreciate it
    hafizam

  • patmcc88

    Hafizam: Your MACD settings should be (12, 26, 9). That’s Fast MA 12, Slow MA 26 and MACD length 9. Also it should be applied to the close of the candle. Fix your settings and you should have many trades, good luck.

  • hurtzi

    4xbaby: a trend change candle is the candle where 5 and 10 ema crossed. you would still have to look whether macd, stoch and rsi are correct (regarding the system). the visualisation by coloring the trend change candle is a feature of pip surfers platform (xtick) and not available in most free platforms i know.

    i hope this helps – please correct me if i’m wrong.

  • hurtzi

    i’m sorry: for a trend change candle, defining the h4 trend, you wouldn’t have to look for macd, stoch and rsi in pip surfers system – the trend change candle just defines the trend (that decides whether he goes only long or short). the above mentioned indicators are mainly for m15. still, the coloring is a feature of xtick.

  • patmcc88

    Hafizam: Your MACD settings should be (12, 26, 9). That’s Fast MA 12, Slow MA 26 and MACD length 9. Also it should be applied to the close of the candle. Fix your settings and you should have many trades, good luck.