BOOOOOOOOOOOO! After saving my butt numerous times in the past, my 30-pip filter has now failed me epicly! Is that even a word? Bahh who cares!
Two weeks ago, the faster-moving 5 EMA crossed over the 10-EMA and created a buy signal. Unfortunately stochastics already slightly oversold and price did not go beyond 30-pips above the high of the cross over candle.
Per my rules, I should NOT enter as this would most likely be a fakeout than a true move upward. Oh, how my system was wrong. Soon after the cross over, price flew to high heavens and rallied more than 300 pips. Oh, the agony of a missed trade!
Bah. I can’t expect to catch every move, but I do expect to be profitable in the end. Besides, I already caught the first big move earlier this year with the HLHB system.
This week was pretty topsy turvy, which left the US dollar as the “Biggest Loser” as risk appetite improved and drove traders towards the higher-yielding currencies. As I learned from Forex Gump, weak US fundamentals also played a role in driving the Greenback lower against its counterparts. In fact, the euro and the pound seem to have gained the most against the dollar as the economic outlook started to brighten for the euro zone and the UK.
Price action has also been a bit choppier than usual in the past couple of days as traders started to position themselves ahead of the big events, which were a couple of rate decisions and the US NFP release.
So no signals for me this week. But boy, do I miss the beach! I want to go back! Need to get my tan right!