Another red week for the HLHB!
Thanks to a couple of unfortunate open positions, this trend-catcher ended up on the wrong side of fresh weekly trends.
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 a crossover early in the week before the euro dropped 70 pips to its intraweek lows.
Unfortunately, ADX was below the 25 mark at the time and was considered invalid by the HLHB. EUR/USD ended up chillin’ around the 1.1715 area before capping the week near its open prices.
The HLHB did validate a good-looking long trade near EUR/USD’s intraweek lows and now the position can only lose a max of 95 pips.
GBP/USD traded inside a really tight range for most of the week.
Like in EUR/USD’s chart, the HLHB also validated a long signal near Cable’s intraweek lows, and now that long position has a maximum SL of 50 pips. Not bad, I think.
If you don’t like seeing losses, then I suggest you look away.See, the HLHB validated a short signal just before USD/JPY mooned to the 110.80 area.
Not only did this close last week’s open short at a 69-pip loss, but it also trapped the HLHB into a short trade during a sharp upswing. Talk about double trouble!
Here’s a summary of the open and closed trades from this week’s trading: