HLHB Weekly Update – March 2, 2012

HLHB Trend-Catcher 3.0

Well, whaddaya know! The last signal from last week turned out to be a winner. On top of that, my HLHB Trend-Catcher 3.0 racked up pips this week!

I wasn’t that happy with how my system performed last week. But luckily, EUR/USD was finally able to break out of its consolidation and allowed the Trend-Catcher 3.0 to end this week with a handful of pips!

EUR/USD 1-Hour Chart

Here’s a rundown of the signals that materialized:

1. Bought at 1.3242 (signal from last week), closed at 1.3293. Trailing stop hit: +51 pips.
2. Crossover at 1.3447, not valid. RSI was not below 50.
3. Bought at 1.3413, closed on new crossover at 1.3424: +11 pips.
4. Sold at 1.3424, closed on new crossover at 1.3452: -28 pips.
5. Bought at 1.3452, closed on new crossover at 1.3456: +4 pips.
6. Sold at 1.3456. Maximum profit target was hit at 1.3332: +124 pips.
7. Bought at 1.3327, closed on new crossover at 1.3311: – 16 pips.
8. Sold at 1.3311, trade still open…

Doing the math, my system is up 146 pips for the week. Ain’t so bad, eh?

EUR/USD

My EUR/USD trade hasn’t moved much. Yesterday, the pair just consolidated within a very tight range due to the absence of market moving data. I suspect this could change very soon as swing traders close shop for the weekend and long-term traders start positioning themselves for March.

Even though there aren’t any major news releases today, I think that price action is on my side. If you look at the 1-hour chart of EUR/USD, you’ll see that the pair seems to have formed a bearish flag just above the 1.3300 level too. If this major level break, I suspect we’ll see a strong move towards 1.3100! I’m crossing my fingers for this!

XOXO,

Huck

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  • Barlow S

    6. Maximum profit target was hit at 1.3256 +200pips

    Really did this happen??  before the crossover of trade 7.

    • huck

      Oops, that is a mistake. I have wrongly calculated the pips I gained. The exit was at 1.3332, which is +124 pips only. My total gain for the week is +146! Thanks for the catch Barlow!

      Changed the actual post!

  • Alessandro Fenati

    Hi Huck! Thank you so much!!!

    Just a few questions: what about the long trading signal after the point two candle? there was a crossover and RSI want above 50…

    On the next candle there was a new crossover (short signal) and RSI went below 50.

    At your trade number 3, RSI was at 48.59, below 50. Are you still using RSI applied to HL/2?

    So, my choices were slightly different from yours, but i just wanted to listen to your opinion. Thank you so much Huck!

    • huck

      In my chart, there were no more crossovers between signals 2 and 3. For trade number 3, my RSI value was at 53.39, making it a valid signal.

      The difference in values could be because our price feeds come from different brokers/sources. Also, the RSI setting on my charting platform can only be set to
      “simple” or “exponential,” and you can’t pick if it’s HL/2 or close.

      Hope that helps!