Skadoosh! Thanks to my revised rules on the HLHB system, I was finally able to get into a trade today. As you can see from the chart above, there was a crossover last Friday, which gave me a nice sell signal. The stochastics were not yet at oversold territory so I set my order 30-pips below the crossover candle. I waited, and waited, and tada, I got triggered on the following candle.
My HLHB system states that I should set a 150-pip profit target of my first position and put a 150-pip trailing stop on the other. Luckily, the profit target of my first position has been hit and my second position is still on the table. I placed a 150-pip trailing stop on my remaining position.
Here are the complete details:
Sold at 1.4377, stop loss at 1.4514 (10 pips above the high of the candle before the crossover candle), first position target 1 hit at 1.4227, second position still active with a 150-pip trailing stop.
Happy, happy, joy, joy… I know, I know I shouldn’t get too emotional but I just can’t help myself. Managed to bag some pips off my EURUSD and AUDUSD trades and get a nice profitable signal on the HLHB system!
In summary, my trades this week were helped by a nice run of risk aversion that hit the markets on Tuesday. After it seemed that it was fundamentals driving the market, it seems that its still risk sentiment that is main catalyst for market moves.
After reading Forex Gump’s recent blog, it seems that a lot of it had to do with reactions to some moves by the Chinese government. Their decisions have sparked some risk aversion in the markets (which also helped my AUDUSD trade bwhahaha!).
On the stateside, it seems like Obama is trying to push for more bank regulations. I’ve been trying to read some articles on this but I don’t quite understand how this will affect the currency markets. Hopefully, I stumble across an article that is an easy read…