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Not a lot of trending action going on with the majors last week, which translated to one or two fakeouts that the HLHB had validated. I’ve got the numbers for this week’s performance!

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

As you can see, EUR/USD traded in a tight range for most of the week.

Fortunately, the HLHB had only validated two of the signals among all of the fakeouts that had popped up (the EMAs got real busy around Tuesday)

The first valid trade ended with a 23-pip loss when the second signal was validated. Meanwhile, the second signal is still open and can only lose a max of 109 pips in the days ahead.

GBP/USD

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

Cable also saw choppy price action in the last couple of days though the bears really upped their game in the second half of the week.

The last of the valid signals were closed last week and there are no new valid signals this time so the HLHB neither gained nor lost pips from the pound this week.

USD/JPY

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

Much like EUR/USD, USD/JPY also traded on a tight range for most of last week.

Unlike in EUR/USD, though, the HLHB actually popped up a promising signal. Specifically, the HLHB is nursing a short trade on USD/JPY with the stops adjusted to a max of 106 pips. Not bad, I think.

Here’s a summary of the open and closed trades from this week’s trading:

Huck's Signature