Basically, this strategy uses two charting systems with different timeframes to identify market trends. The first timeframe is a 4-hour frame for determining the main market trend after which we will trade on a smaller 15-minute timeframe.
Strategy Cowabunga uses 2 timeframes to analyze so it will give a higher win rate.
To identify key trends at 4 o'clock, we set the following indicators
- EMA 5 and 10
- Stochastic with settings 10, 3, 3
- RSI parameter setting is 9 sessions
Here are the settings at the 15-minute chart
- EMA 5 and 10
- Stochastic 10, 3, 3
- RSI 9
- MACD 12, 26, 9
The market will be in an uptrend when the RSI is above 50, the 5 EMA is over the 10 EMA and the Stochastic indicator is going up.
Conversely, the market turns down when the RSI is below 50. EMA 5 is below EMA 10 and Stochastic is falling.
Rules for entering buy orders
1. EMA 5 must be above EMA 10.
2. The RSI must be greater than 50 and must not be overbought.
3. Stochastic must be upwards and not in the overbought zone.
4. The MACD must go from negative to positive OR negative and begin to increase in value.
Rules for entering sell orders
1. EMA 5 must cut down EMA 10.
2. RSI must be less than 50 and must not be oversold.
3. Stochastic must face down and not be in the oversold zone.
4. The MACD must go from positive to negative OR be positive and begin to decrease in value.
Note
1. Set RSI and Stochastic levels as a guide to avoiding trades as they indicate overbought and oversold conditions (greater than 80 and less than 20).
2. Users can enter the specific time they want to check again.
3. Users can define their own take profit target, stop loss, and trailing stop. The strategy default is a 100 pips profit target with a stop loss of 40 pips. (Note, when you change these values, note that each pip is worth 10, so 100 pips equal 1000 points)
(The red arrows are the sell orders that have been individually coded by the author according to what happened above, please go to the link at the bottom of the post to enter the copy of the code)
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