It’s a stalemate!
There were three valid signals this week, but two of them are still open heading into the next 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 started its slow and somewhat steady downtrend on Monday when traders started getting real about vaccine prospects.
The pair consolidated for a while before it hit its intraweek lows in the middle of the week. Luckily, the HLHB had a valid short on Monday.
The system hasn’t been able to lock in gains just yet though this week’s trade can only lose a max of 32 pips after making stop adjustments. Yay for small wins?
Like in EUR/USD, the HLHB validated a short signal early in the week. Problem is, Cable didn’t see a downtrend that EUR/USD did. GBP/USD popped up to 1.3300 before it went back to its weekly open levels!
The short trade didn’t lose any pips (phew!) thanks to a new signal popping up right where the Monday signal is. For now, the HLHB still has a long trade open in favor of the pound.
USD/JPYUSD/JPY escaped a tight consolidation to rocket to 105.50 at the start of the week.
Unfortunately for the HLHB, RSI wasn’t fast enough to cross above the 50.00 mark when an SMA crossover happened.
The pair is now back to consolidating around the 104.50 – 105.00 area. I hope this trend-catcher actually catches trends the next time we see a breakout!
Here’s a summary of the trades: