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The majors were in wide ranges for most of the week so there were not a lot of valid signals. So how the heck did the HLHB still manage to lose 12 pips?

Before we get to the details, read all about my HLHB Trend Catcher System if this is your first time hearing about it!

Trend Catcher SystemBasically, 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

EUR/USD traded on a wide range as the pair hangs out at the 1.1800 psychological area. In fact, wasn’t until near the end of the week when the euro broke above the resistance level and made new highs.

Unfortunately, EUR/USD’s price action wasn’t any help from the HLHB this week. While it popped up some crossovers, the HLHB’s parameters invalidated all of them.

Better luck next time, I guess?

GBP/USD

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

As you can see, only GBP/USD managed to squeeze through valid signals this time.

The first one showed up just as the week started and forced me to close last week’s open position at break even. The second signal is turning out pretty well as it showed up near Cable’s weekly lows before the currency pair made new weekly highs.

USD/JPY

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

No new signal? No problem!

Unlike the two majors above, USD/JPY actually had a decent one-directional move this week.

Too bad that the upswing was too slow for this trend catcher! Thanks to tight consolidations during USD/JPY’s slow and steady climb, the HLHB didn’t validate any of the SMA crossovers in the last few days.

Here’s a summary of last week’s trades:

Huck's Signature