HLHB Weekly Update – June 4, 2010

PoD Chart

Thanks to my 30-pip filter, I was saved from, not just one, but TWO losing trades. Phew! Last Friday, an upward crossover took place but I wasn’t able to get a trade signal for two reasons:

  1. Stochastics were already in the overbought area.
  2. The next candle didn’t meet the 30-pip filter.

Good thing the rules of my HLHB mechanical system prevented me from entering a long trade since the price dropped down soon after!

Later on, a downward crossover happened while the stochastics were still on their way to the oversold area. I patiently waited for the next candle to reach my 30-pip filter but it edged higher instead. From then, the price action became a little choppy as the EURUSD pair figured out which direction to take.

Trading this week was like a Japanese sushi roll… It was all chopped up! All I saw was up and down movement as it seems traders just don’t know what they want to do. The com-dolls remained steady, the pound rose slightly, while the euro moved sideways.

Still, I read Pip Diddy’s roundup today to find out why the euro dropped yet again. Hmm, it looks like we’ve got another troublemaker. Apparently, Hungary expects its budget deficit to be double its initial estimates. So, once again, euro bears found another reason to short the currency!

Meanwhile, across the world, the yen has been struggling as political turmoil has been rocking its home land. Prime Minister Yukio Hatoyama stepped down, in hopes of helping his party, the Democratic Party of Japan, gain some support ahead of the upcoming elections. Ugh, politics! Why can’t everyone get along? I mean, look at the Japanese economy! Debt, deflation and now politics?

So that ends another week of Forex. I’ve still got my orders on my GBPUSD trade open and hopefully, I get triggered tonight!

By the way, have you seen who they replaced Megan Fox with in Transformers 3? I dont know about you, but I think all you men out there will be just as happy!