Simple's Green Room

[pennies2007]

Detailed COG Test Trade

Ok Simple, here’s an entire trade process from start to finish. It’s turning out that using the smaller COG setup is really vital to determining whether or not the larger COG levels will hold or not.
The ideal setup occurs when both COGS are turned in the same direction up or down. Here’s another example on the same GU 15 minute chart.
What I expected to happen was for the smaller COG to turn back down and give me a chance to short GU in the tester back to the lower levels of the larger COG. What actually happened was quite different.
The smaller COG never turned back down and price actually blew through the top of the larger COG and the whole setup turned bullish later on. That gave me the opportunity to go long where the 2 median lines converged on a pullback. Also notice that price did pull back once more to the lower green level in the smaller COG before taking off again.
My TP that I had in mind was the upper level of the larger COG. I noticed that I had to keep moving my TP up to compensate because the trend got so bullish the larger COG upper level kept moving up. I finally chickened out when price action started stalling a bit at the upper green level but I managed to take 74 pips of profit on a long when I thought originally I was going to be going short.
There are 6 charts here showing the process from start to finish in order…