The HLHB may have caught most of the decent moves, but there were just too many fakeouts this week.
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.
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 stayed around the 1.1900 area at the start of the week before the bulls managed to get about 80 pips on the bears.
While the HLHB validated a long trade right before the euro shot higher, it also validated TWO signals that popped up when the pair was ranging tightly.
This is why the HLHB need the week down by a net of 20 pips with one short trade still open to start next week.
The HLHB didn’t validate any of the crossovers from Cable this week, which is fortunate because GBP/USD traded in a wide range and didn’t really see one-directional moves in the last couple of days.
I hope we see more trendy moves from the pound in the days ahead!
If you don’t like seeing losses, then I suggest you look away.Like in EUR/USD, USD/JPY didn’t see much action until Tuesday when the dollar really took hits.
The HLHB validated one crossover from USD/JPY and it’s still open with its stops adjusted to limit the losses to 79 pips. Not bad, I think.
Here’s a summary of the open and closed trades from this week’s trading: