It might have been a sea of red for the HLHB this week, but I’m not too worried because this trend-catcher also has a decent win just waiting to be closed. 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.
So, both EUR/USD and GBP/USD saw strong, one-directional price action while USD/JPY mostly stayed within its intraweek ranges. This is probably why there were no valid signals from USD/JPY this week.
Unfortunately, the HLHB closed EUR/USD’s open trade from the previous week at a loss AND validated a couple of fakeouts from this week’s signals.
Not all hope is lost, though! Thanks to GBP/USD’s strong downtrend and a valid signal in the trend’s direction, the HLHB has now locked in at least 193 pips from the pair. Woot!
Over the next couple of days it looks like I’ll be nursing THREE pro-dollar positions. Think the Greenback will kick pip butt in the last full trading week of the year?