HLHB Weekly Update – December 4, 2009

Hey forex folks! Enjoying the first week of December so far? Well, it’s been a pretty hectic week for me so I’m looking forward to unwind this weekend. But I do hope I’ll be able to chalk up some gains as my GBPJPY short trade is finally heading my way. Wish me luck on that!

Anyway, before we all head off and enjoy the weekend, here’s an update on my HLHB mechanical system… If you’re not so familiar with my HLHB system you can read up on it here.

PoD Chart

I spotted an EMA crossover (very) early this week, as the 10 EMA crossed over the 20 EMA this Monday. I had to wait for the pair to climb by 30 pips and hit 1.5100 before I’d open a long position. And lo and behold! It reached 1.5100 the following day but there was one problem… The stochastics were already in the overbought zone! So that means no trade and zero pips from my mechanical system this week. Boo hoo!

So, no trades from my system and just one swing trade for me this week. The reason for this was because I had a hard time judging risk sentiment this week. A lot of things happened over the past week, that sentiment changed as quickly as my aunt changes her baby’s diapers! First, it seems that traders got over the whole Dubai fiasco pretty quickly as we saw risk sentiment prop up and higher yielding assets rose sharply. However, the past couple of days have been choppy, and we’ve seen the dollar make some ground.

The mixed trading left me confused, so I decided to stay out of the markets. I am realizing that there is no need to force trades when I don’t have a good idea on the current sentiment.

Okay then, I guess I’ll call it a week. Weekend, here I come! Maybe I’ll go out and watch a movie tonight… I hear New Moon’s good. Or is it just because Jacob’s abs look really hot?

  • toyogo00

    Hi,

    Can you please tell me what is the parameters of the stochastic you use?

    Regards,
    Toyogo

  • kamikazical

    From the description of the HLHB system: Slow Stochastics with parameters 14, 3, 3. I don’t understand your 30 pip crossover rule. Is it 30 pips above the high of the current crossed-over-ness or is it from an earlier crossover? Because in the description you say “previous crossover’s high” and the point you have marked off does not look like 30 pips above the current crossover candle’s high.

  • toyogo00

    Hi,

    Can you please tell me what is the parameters of the stochastic you use?

    Regards,
    Toyogo

  • likepips

    Hello, Can you please guide me about chart setup for H1… i am a new in this field currently using 3,5 EMA crossover for H1 chart is it okay or should i add other indicators too?
    Regards
    Fasi

  • likepips

    Hello, Can you please guide me about chart setup for H1… i am a new in this field currently using 3,5 EMA crossover for H1 chart is it okay or should i add other indicators too?
    Regards
    Fasi

  • Huck

    Hi toyogo00! The parameters of the the slow stochatics that I’m using are 14,3,3.

  • Huck

    Hi kamikazical, my 30-pip crossover rule means that I would enter a long position if the price goes 30 pips above the high of the crossover candle. If you check the EURUSD chart, you’d notice that the crossover candle’s high was at 1.5070. I had to wait for the price to climb by 30 more pips to 1.5100 before going long. But when it finally reached 1.5100, the stochastic was already overbought so I couldn’t enter the trade anymore.

  • Huck

    Hi toyogo00! The parameters of the the slow stochatics that I’m using are 14,3,3.

  • Huck

    Hi kamikazical, my 30-pip crossover rule means that I would enter a long position if the price goes 30 pips above the high of the crossover candle. If you check the EURUSD chart, you’d notice that the crossover candle’s high was at 1.5070. I had to wait for the price to climb by 30 more pips to 1.5100 before going long. But when it finally reached 1.5100, the stochastic was already overbought so I couldn’t enter the trade anymore.