Ooh, a couple of crossovers this week for the EURUSD… but no HLHB signals for me! Huh, why am I being so cheery about it? Well, it’s because the awesome-dary rules of my HLHB system prevented me from having losses from all those choppy moves! Let’s take a closer look, shall we?
A downward crossover happened on Tuesday but the stochastics were already in the oversold area, which means that I don’t get a short signal. The price just zigzagged from there and, if I had gone short earlier, I would’ve gotten stopped out later on. Phew! Then, an upward crossover took place yesterday and, with the stochastics still moving towards the overbought region, I waited patiently for the next candle to reach my 30-pip filter. Unfortunately, it didn’t. In hindsight though, that 30-pip filter prevented me from getting another loss! Notice how that last red candle’s lower wick went beyond the low of the crossover candle? If I entered a long trade, I would have gotten stopped out too!
So, I guess the rules of my HLHB system are a little strict but they really seem to keep me loss-free, especially when the markets are choppy. Better safe than sorry!
As for the markets…
Boooooooooooooringgggg!!!! Despite some movements here and there, the week was generally a slow one as most of the major currencies ranged. Although the dollar did try to push higher and continue the overall long-term trend, it eventually turned around mid-week to give up its gains. With really nothing left on the economic calendar to provide volatility for the majors, it looks like today will be another slow day.
It looks like the trending days have finally ended. The doldrums of summer has arrived, which means a lot of range plays and slow price action. Sigh.
But you all know what summer means… It means summer blockbuster movies! I finally got to watch Toy Story 3 yesterday! What a lovely movie! It reminded me so much of my childhood! I think I’ll go watch the first two movies again this weekend!
That’s all for this week! Make sure to hit me up on MeetPips.com when you aren’t busy watching the World Cup!