Aha! Thanks to dollar domination, a downward EMA crossover took place on EURUSD’s 4-hour chart this week. A valid HLHB signal perhaps?
I would’ve taken that signal to short EURUSD 10 pips below the crossover candle but, unfortunately, stochastics was already below 20 and in oversold territory! That just means I wasn’t able to profit from that 300-pip (repeat after me… THREE HUNDRED!!!) EURUSD dive! What a bummer!
But looking a bit closer, I realized that I would’ve gotten stopped out by that nasty spike right after the crossover candle. You see, the rules of my HLHB mechanical system clearly state that my stop should be placed 10 pips above the candle before the crossover candle. Get it? Well, if you’re somewhat confused, go check my HLHB rules again!
The lesson here? Don’t get worked up by what appears to have been a beautiful move! Just like in life, you gotta see through all that makeup to see what’s truly going on!
Oh well, another week with no HLHB trade…
It was quite a wacky week, as we saw some pretty wild, wild moves in the Forex markets. With the dollar gaining across the board, does this mean that the market now believes that the US is fundamentally stronger than other major economies? Heck no! With unemployment at elevated levels and threats of a Japan-style deflation scenario, the US’s underlying economic fundamentals is far from healthy!
In this girl’s humble opinion, the dollar’s rally this week was merely the cause of risk aversion… again. The uncertainty surrounding global economic recovery has triggered investors to unwind their risk trades, much to the benefit of the dollar. In fact, risk aversion was so strong that the dollar even managed to post gains over other major currencies in the face of potentially more quantitative easing from the Fed.
All in all, not a good week for me, as I ended up with no signal and I lost my latest trade. But hey, I know this is all part of the process of me becoming a better trader.
On a brighter note, just two more weeks till we get another set of Glee episodes! Yipppeeeeeee!!! It’s been way too long, I need my Glee-fix. Personally, I miss Sue! She’s so hardcore!
Before I forget, lemme remind you that it’s Friday the 13th! If you’re the superstitious type, you might wanna stay out of the markets and take an early day off! But if you decide to try and grab some pips, lemme wish you good luck! Thank you guys for reading my blog! Don’t forget to hit me up at MeetPips.com!