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The last week of January was good luck for the HLHB System, which saw profits despite some ranging price action. I have the deets right here!

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.

EUR/USD

EUR/USD 1-Hour Forex Chart
EUR/USD 1-Hour Forex Chart

GBP/USD

GBP/USD 1-Hour Forex Chart
GBP/USD 1-Hour Forex Chart

USD/JPY

USD/JPY 1-Hour Forex Chart
USD/JPY 1-Hour Forex Chart

All three major dollar pairs were locked in tight ranges for most of the week before seeing explosive price action on Thursday and Friday.

The HLHB’s ability to filter fakeouts was a bit mixed. While it managed to keep out fakeouts on EUR/USD and GBP/USD, it also validated a long signal on USD/JPY right before the pair dropped. The trade is still open, though, which allowed this trend-catcher to close the week with profits:

Looks like I’m starting the week with long trades on EUR/USD and USD/JPY. Both trades have their SLs adjusted below 150 pips so I’m pretty hopeful. Fingers crossed for good closing prices for each trade!

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