Last week my 30-pip filter annoyed me like that “Friday” song. But now, because it saved me from a fakeout, I’m head over heels for it! Oh, how I love you my 30-pip filter! I hope I don’t end up saying the same thing about that annoying song too. I have to admit though, it’s catchy! I can’t remember who sang it, but I promise I’ll let ya guys know later on Twitter.
Anyway, enough about my music taste. Let’s look at how my HLHB system fared this week, shall we?
As you can see, a crossover materialized early on in the week. It would have been a valid buy signal if not for my 30-pip filter. I would’ve gotten stopped out if I entered though. The pair merely ranged and it fell below the low of the crossover convincingly soon afterward.
I know my HLHB system hasn’t been getting any signals lately. But hey, at least it’s also keeping me away from losing trades too, right? Sooner or later, my system is gonna give me a super major major winning trade… I know it will!
As for the fundamentals, fears of a nuclear breakdown in Japan sparked risk aversion and dominated market sentiment for the most part of the week. It also didn’t help that political unrest in the Middle East seemed to be only getting worse. Consequently, these sent higher-yielding currencies in the bear lair.
Too bad for me, the dollar didn’t benefit as much as its other safe haven counterparts, namely, the yen and the Swissy. In fact, the yen was so strong that the G7 agreed to a joint intervention, the first one since 2000, just to tame it! I’m pretty sure our resident economic guru Forex Gump will have more details on that. So stay tuned!
Anyway, my EUR/USD trade turned out to be a serious letdown. It rallied ALL THE WAAAAY up to 1.4050 which happens to be my stop. My USD/JPY trade, on the other hand, was a success! Even though I closed my second position at breakeven, I was able to take profit on my first one.
So… One winning trade, one losing trade, and one “I-got-saved” trade. Decent week, I suppose, considering how volatile the market was. That’s all for now you cool cats! Have a great weekend!