An upward EMA crossover, my 30-pip filter hit… Why that looks like a valid long signal to me! But, wait just a minute, were stochastics in the overbought area already? I had to put on my glasses (no, not my 3D glasses, but wouldn’t candlestick charts in 3D be pretty cool?) and zoom in really close to the charts to see if the stochastics reached 80 or not. According to the rules of my HLHB system, the long signal would be valid if the stochastics was above 50 but less than 80.
As you can see from the chart above, the stochastics was just a hairline below the overbought area when the crossover happened. So I took that long EURUSD trade and I’m up by almost 250 pips now. Wheee! Of course I locked in some winnings when my first profit target was hit, 150 pips above my entry price of 1.2829. I’m keeping the rest of my position open, with a 150-pip trailing stop.
I’m just very fortunate that this week turned out to be such a pro-euro week. The euro started the week on a solid note, as investors were apparently pleased with the results of the latest Basel meeting. With all this new regulations and mumbo jumbo, we should THEORETICALLY be able to avoid financial collapses in the future. Now, I’m not sure what this all means, but hey, if it’s good enough for a hotshot trader over at SMB Capital, then it’s good enough for me!
Also, It seems that the safe-haven currencies (USD, JPY, and CHF) all had their own moments of weakness, each of which contributed towards the euro’s bullish run. First, the dollar tanked upon rumors that Goldman Sachs is betting that the Fed will begin another round of quantitative easing this November. Obviously, this didn’t work out too well for the dollar, as it dropped across the board.
Then, on Wednesday, the BOJ FINALLY walked the intervention walk after they had been talking the intervention talk this whole year. The BOJ intervened in the markets, reportedly spending $1 TRILLION yen to weaken the yen. Crazy huh? In any case, EURJPY shot up about 300 pips that day!
And yesterday, we saw some dovish comments from the SNB, who lowered their growth forecasts. This signaled that the central bank won’t be raising rates any time soon. And what happened to EURCHF? Nothing much… just a 250 pip gain for the day!
So yes, it was a good week for the euro, and a doubly good week for me, as I’ve locked in some pips on my GBPUSD trade. YESSSSS!!! I feel like hittin’ the club tonight and dancing to my own Flo Rida remix, “The market can’t handle me right now!” Oh yeah, go Huck, go Huck, go Huck!
Okay, calm down girl, calm down. It’s just one good (and lucky) week for me. It just feels good to know that I got something right after my abysmal performance last week!