My, oh my, this week’s price action was just as exciting as the latest episode of Glee! There were plenty of twists and turns in the plot, but I don’t wanna spoil it for those who haven’t seen it yet. Don’t you just hate it when that happens? You’ve been busy all week and you’re looking forward to the weekend to catch up on your shows and poof – you get a text message saying “OMG, I can’t believe Quinn….”. I just find it so annoying! Anyway, I can’t wait for the next episodes… but, unfortunately, the show will have a hiatus until April next year. Too bad for Gleeks like me! Meanwhile, the price action on the forex market is business as usual.
This week was pretty wacky, as we saw the USD continue its bullish run from Friday… only to give up its gains the past couple of days. I’m new to this forex game but I’m guessing that as we enter the holiday season, we will see less liquidity in the markets. One thing that caught my attention this week were the growing concerns regarding possible credit downgrades in Europe. In the past, it would have been hard for me to fathom that central banks may default on their loans, but hey, what have we learned from this recession? Anything is possible!
Anyway, I’ll move on to my HLHB update now.
Last Friday, we saw price dive in a very steep manner, causing the fast moving 10 EMA to cross over the slow moving 20 EMA. In order to take this trade, two other conditions must be fulfilled. One, the pair must first move down 30 more pips and two, stochastics must still be above oversold territory (above the 20 mark). Unfortunately, when my the 30 pip buffer was hit, stochastics too went into oversold territory preventing me from taking the short trade.
So, once again, no trades from the HLHB system but I’m not feeling too bad about this trade or no-trade. The 30-pip buffer may have caused me to miss an opportunity to profit but it has saved me from being faked out a lot of times too.