The majors didn’t see strong one-directional price moves last week.
Luckily, the HLHB validated enough trades to make me close open positions in the green. Phew!
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
As you can see, the HLHB didn’t validate any signal until near the end of the week when the pair saw a strong bearish candle.
While the actual trade isn’t going anywhere just yet, the valid signal closed last week’s open position for a cool 69 pips. Woot!
GBP/USD
Like in EUR/USD, the HLHB didn’t validate any of Cable’s signals until near the end of the week.
This was unfortunate because GBP/USD actually saw a strong upswing after finding a double bottom support.
For now, an open short position can only lose a max of 122 pips in the next few days.
USD/JPY
And, since the signal came after a strong upswing, the entry of a new trade meant closing last week’s position for a 54-pip gain.
Over the next couple of days a short signal can only lose a max of 114 pips. Not bad, right?
Here’s a summary of last week’s trades:
