Forex System Update: SMA Crossover Pullback (Nov. 9-13, 2015)

Chop, chop, chop! Range-bound conditions were seen in the forex market last week, and that’s not usually good for the SMA Crossover Pullback system. Here’s what happened.

As I’ve shown y’all in last week’s update, a new crossover materialized on GBP/USD followed by a stochastic pullback entry signal later on. However, price dropped like a rock to hit the stop loss, and it wasn’t long before another entry signal popped up.

GBP/USD 1-hour Forex Chart

GBP/USD 1-hour Forex Chart

As for AUD/USD, the pair also generated a couple of entry signals, although the moving averages just appear to be oscillating.

AUD/USD 1-hour Forex Chart

AUD/USD 1-hour Forex Chart

And as for EUR/USD and EUR/JPY, there were still no new crossovers or entry signals due to the nonstop downtrends, although the selloff appears to be slowing down.

EUR/USD 1-hour Forex Chart

EUR/USD 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

EUR/JPY 1-hour Forex Chart

To sum up, here are the trades and open positions from the SMA Crossover Pullback system last week:

SMA Crossover Pullback Positions as of Nov 13, 2015
Pair Position Entry SL PT Status P/L  (pips) P/L  (%)
AUD/USD Long .7050 .6900 .7350 Closed -3 -0.02%
GBP/USD Long 1.5380 1.5230 1.5680 Closed -150 -1.00%
AUD/USD Short .7050 .7200 .6750 Open
GBP/USD Short 1.5120 1.5270 1.4820 Open

All in all, the forex system is down 153 pips or 1.02% for the week. Bahh, that caps off the forex mechanical system’s impressive winning streak since the start of Q4, as trends appear to be exhausted already.

Think these range-bound conditions are likely to carry on? And should I be adding yet another technical indicator to filter out the signals during this type of market environment?