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Another week, another chance to price in fakeouts from Cable!

Though there were a couple of decent trades from the HLHB, one or two big losses dragged the system in the red last week.

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 in a tight range in the first half of the week before it saw wild price swings on U.S. election day.

The pair dropped to make new intraweek lows and then proceeded to rise by more than 200 pips on the prospect of limited Wall Street regulations.

The HLHB didn’t validate any new signal last week but it did gain 59 pips from hitting an adjusted stop loss from an open position from the previous week.

GBP/USD

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

Unlike in EUR/USD, Cable didn’t see one-directional price action in the last few days.

The HLHB validated TWO new trades though! Unfortunately, signal #2 was such a big fakeout that its losses erased the gains from last week’s open position AND the gains from the first valid trade this week. Boo!

USD/JPY

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

USD/JPY traded in an even tighter range than EUR/USD before U.S. election shenanigans fired up the volatility of the dollar.

USD/JPY traded steadily downward for most of the week, but not before the HLHB somehow validated a long signal.

This translated to a 91-pip loss from USD/JPY and contributed to the HLHB losing a net of 49 pips from all the closed trades this week.

Here’s a summary of the trades:

Huck's Signature