The HLHB is back in the red this week! I’m not worried, though, an open trade has also locked in waaay more pips than this week’s loss! Here are the deets.
Before we get to the details, 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.
It’s been a trend-y couple of days for the dollar this week, as ALL three major pairs that I’m watching moved significantly from their weekly open prices.
As you can see, GBP/USD saw a one-directional move while EUR/USD and USD/JPY saw sharp price movements before they hit tight intraweek ranges.
Only USD/JPY yielded a valid signal this week, and that one signal was the cause of this week’s losses. I had to close an open trade from the previous week, you see.
But I’m not too worried. Thanks to a long open position from the previous week and Cable’s strong uptrend this week, the HLHB has also managed to lock in 132 pips from GBP/USD before next week even starts. Woot! Woot!
I’ll be starting next week with long trades on EUR/USD, GBP/USD, and USD/JPY. Which trade/s will lose, and which one/s will win? I can’t wait to see the results!