Fakeout parade! I had to close a couple of open positions from the previous week after the majors saw reversals this 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 saw an almost one-directional trade after hitting highs just under the 1.1950 area.
Unfortunately, the HLHB had an open long position from the previous week and there was no valid signal to catch most of the downswing of the last couple of days.
I had to close last week’s open position at a 105-pip loss and now the HLHB has no other trade on the euro. Better luck next time!
Like in EUR/USD, the HLHB also had to close an open long trade at a loss this week.
Unlike the euro, though, the pound saw a mid-week reversal that erased most of GBP/USD’s weekly losses. What’s more, the HLHB caught some of the move!
The current trade is up by a bit and an only lose a max of 35 pips next week.
USD/JPYIt took a bit more time for USD/JPY traders to find direction last week.
But, boy, they sure had high convictions once the dollar picked a direction! USD/JPY popped up sharply in the second half of the week, which was unfortunate for the HLHB that validated a short fakeout early in the week.
Here’s a summary of the open and closed trades from this week’s trading: