HLHB Weekly Update – May 7, 2012

HLHB Trend-Catcher

EUR/USD Chart

There were a lot of invalid trades but the HLHB Trend-Catcher system still ended the week in the green. In total, there were 7 invalid trades, 1 losing trade, and 1 winning trade. The final pip gain was 49 pips. Finally, things are looking up!

Here’s a rundown of the signals that materialized for the week:

1. Invalid signal since RSI did not cross 50.
2. Invalid signal since RSI was already above 50 when the EMAs crossed over.
3. RSI was below 50 the candle before. Signal invalid.
4. Bought at 1.3238. Trailing stop triggered at 1.3234. -4 pips.
5. Sold at 1.3226. Trailing stop triggered at 1.3173. +53 pips.
6. Bought at 1.3170. Closed due to new crossover at 1.3146.
7. Invalid short signal since RSI was already below 50 the candle prior.
8. Invalid signal since RSI did not cross 50.0 from below.
9. Invalid signal since RSI was below 50.
10. Invalid signal since RSI was above 50 already the candle before.
11. Sold at 1.3114. Trade still open.

Total gain: 49 pips

The Trend-Catcher finally broke its 3-week losing streak. And looking at how price has been trending since Friday, it seems that it is poised for more gains. Of course, anything can happen so I’m not going to get my expectations out of hand.

Swing Trade on EUR/USD

EUR/USD Chart

My short EUR/USD trade also closed with a win. A 1.25% win, at that!

The disappointing NFP report last Friday spurred risk aversion and according to Pip Diddy, caused the pair to close the day lower. On top of that, elections in France and Greece fueled concerns about political instability in the euro zone. Boy, was Forex Gump right on calling out a weekend gap on EUR/USD!

I feel that the negative vibes surrounding the region will still last for a couple of trading days. However, I didn’t want to get ahead of myself and risk losing my unrealized profits on this assumption. And so, I decided to close all my positions earlier at 1.2980.

Short EUR/USD at 1.3157, closed at 1.2980: 177 pips/+1.25%

They say that all weekend gaps get filled. I’ll be keeping a close eye around 1.3100 to see if resistance holds. If it does, I’ll probably short the pair again. I’ll be sure to let you know when I pull the trigger. Stay tuned!

  • Granticus_Maximus

    Nice one Huck! :D …the pair bounced back up to around 1.306 and then has come crashing back down under 1.30 again. Where do you think it’ll go this week?