Not a lot of big one-directional trends for the major dollar pairs this week, but an open position from the previous week managed to lock in some sweet pips. Woot!
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/USDEUR/USD traded on a tight range early in the week before it slowly but surely edged lower in the 1-hour chart.
Unfortunately, the HLHB didn’t get any of the downtrend action.
It did validate a long signal near the end of the week, though. Think the euro bulls will flex their muscles next week?
While Cable didn’t see one-directional trade for the week, it did see two shorter intraweek trend moves that could’ve bagged at least 100 pips.
Luckily for the HLHB, GBP/USD’s moves were strong enough to add AND lock in pips from the previous week’s open long position.
USD/JPYUSD/JPY dropped by more than 100 pips at the start of the week before dollar bears came up for air.
The pair then traded sideways for the rest of the week. Good thing the HLHB didn’t validate any signal that could’ve been caught in a fakeout!
Here’s a summary of this week’s results:
By the end of the week, the HLHB gained a net of 185 pips (+0.62%) from closing Cable’s trade.
This trend-catcher is still uber dollar bearish in the coming days, so I better watch out in case of market themes swing in favor of the dollar!