Remember that promising signal that we were watching last week? Well, it turned out pretty well this week! Here’s what’s up from the HLHB System.
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.
Last week saw the HLHB System catch another 85 pips for the pip coffers. However, I was more excited about the open trades that showed promise.
Well, they turned out pretty well this week! A new valid signal closed EUR/USD’s short trade with a cool +245 pips while USD/JPY’s open trade didn’t do badly with a 3-pip gain.
As in the previous week, Cable didn’t pop up a valid signal. Looks like the bulls and bears are on a tight tug-o-pips on that one!
Over the next couple of days our trend-catcher will be nursing two new open trades. While neither USD/JPY nor EUR/USD’s signals have locked in pips so far, the stops on both pairs have been adjusted to limit the risk exposure.
With the U.S. scheduled to implement additional tariffs on China’s products on the 23rd, I’m sure we’ll see a lot of volatility in the week ahead.
I’ve got my fingers crossed that the mid-week trend shift that we saw will continue to dictate the dollar’s price action!
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