After what feels like bajillion years, the HLHB is finally over its losing streak!
There were only a number of new trades, though, so I’m still on the lookout for bigger, more trendy price action from the majors.
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
Instead, the euro took a slow and steady route and eventually ended the week lower by about 100 pips.
No new signal from the HLHB so I’m going to have to wait for next week to see some euro action.
GBP/USD
Cable seesawed for most of last week and didn’t see any valid signals until Friday when a long signal was validated.
This meant closing last week’s long signal for a small profit. Yay! GBP/USD didn’t move much after the signal, though, so the stop loss is only adjusted to a max of 121 pips for the week ahead.
USD/JPY
In fact, USD/JPY probably moved about 70 pips during the week. This is probably why the HLHB hadn’t validated any crossovers either.
So, no new highs for the pair which means that the trade from two weeks back is still on with a max loss of 2 pips. Not bad, I think.
Here’s a summary of last week’s trades:
