Even though I still had an open trade from last week, I had to exit that one because a new crossover formed during the first part of this week. The EMAs made an upward crossover but the stochastics were already in the overbought region, meaning I could not enter long. I thank the forex gods for that! Had I entered that trade, I would’ve been stopped out in an instant by that long red candle.
Soon after, another crossover formed, a downward one this time. With the stochastics still making their way towards the oversold area, this crossover was a valid signal and all I had to do was wait for the next candle to dip 30 pips below the low of the crossover candle which was 1.3530. I was able to go short at 1.3500, which was the low of the next candle. Although the price has been bouncing up and down for a while, I still haven’t gotten stopped out yet since my stop is located 10 pips above the high of the pre-crossover candle which is 1.3693.
The total pip loss of the HLHB system this week is just 15 pips! Overall, ever since I started forward testing, the HLHB system is still up by 224 pips!
If you find all this a little confusing, go ahead and check out my very first post on the HLHB system here. The post describes my system, as well as the philosophy behind it.
So yeah, it was a pretty wild week as the dollar and yen made some nice rallies. The Greek debt drama continues to get worse everyday, with the Greek Deputy Prime Minister saying some nasty below the belt comments to Germany. Moreover, US consumer confidence was reported to have fallen, further heightening risk aversion. Personally, this is good for me because I’m somewhat in the long dollar camp. As long as the trend continues, I’m gonna ride it out. After all, the trend is my friend right?
Anyway, this season’s American Idol is down to its last 24 contestants. Who do you think will win season 9? Well if you ask me, I think its gonna be Casey James all the way! Haha