Back to back to back! Thanks to strong dollar trends, the HLHB was able to bag more pips this week. Here are the numbers!
Before we get to the numbers, read all about my HLHB Trend Catcher System if this is your first time hearing about it!
Basically, I’m catching trends whenever the 5 EMA crosses above or below the 10 EMA. A trade is only valid if RSI crosses above or below the 50.00 mark when the signal pops up. And in this version, I’m adding ADX>25 to weed out the fakeouts.
As for stops, I’ll continue to use a 150-pip trailing stop and a profit target of 400 pips. This might change in the future, but I’ll stick to this one for now.
Oh, and as mentioned recently, I’m switching back to applying the HLHB system to the 1-hour time frame. Using 4-hour in Q1 2017 and Q2 2017 wasn’t bad, but I think using this trend-catcher on the 1-hour could yield better results.
As you can see, it wasn’t all stars and rainbows for the HLHB this week. For one thing, it totally failed to pop up valid signals on GBP/USD’s super strong downtrend. Not only that, but it also fell victim to USD/JPY’s choppy trading!
Thankfully, this trend-catcher system did its job on EUR/USD. While last week’s trade already had an open short on Fiber, another valid short signal didn’t hurt either. In fact, the HLHB has now locked a cool 179 pips on the trade.
Going forward, there’s not a lot of economic reports to spark strong trends among these major dollar pairs. That means we have to look to market and dollar sentiment for clues on major dollar trends!
Got any ideas on potential market movers this week? Which currencies are you favoring over the next couple of days?