The losing streak is over! Read on to see how this trend-catcher managed to end the week in the green despite the lack of one-directional trades for the dollar!
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 before, 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.
Unlike in the previous week’s trading, there weren’t a lot of strong, one-directional moves seen on EUR/USD, GBP/USD, and USD/JPY.
That wasn’t a problem for the HLHB System, though, as it cashed in enough pips from last week’s open positions to stay afloat despite this week’s fakeouts.
The next couple of days promise to be interesting as the system nurses open trades on ALL three major dollar pairs. What’s more, they’re favoring different biases! It’s pro-dollar on USD/JPY and GBP/USD and anti-Greenback on EUR/USD.
Which trends do you think will dominate the dollar’s price action this week?