Chop, chop, chop! Range-bound conditions were seen in the forex market last week, and that’s not usually good for the SMA Crossover Pullback system. Here’s what happened.
As I’ve shown y’all in last week’s update, a new crossover materialized on GBP/USD followed by a stochastic pullback entry signal later on. However, price dropped like a rock to hit the stop loss, and it wasn’t long before another entry signal popped up.
As for AUD/USD, the pair also generated a couple of entry signals, although the moving averages just appear to be oscillating.
And as for EUR/USD and EUR/JPY, there were still no new crossovers or entry signals due to the nonstop downtrends, although the selloff appears to be slowing down.
To sum up, here are the trades and open positions from the SMA Crossover Pullback system last week:
| SMA Crossover Pullback Positions as of Nov 13, 2015 | |||||||
|---|---|---|---|---|---|---|---|
| Pair | Position | Entry | SL | PT | Status | P/L (pips) | P/L (%) |
| AUD/USD | Long | .7050 | .6900 | .7350 | Closed | -3 | -0.02% |
| GBP/USD | Long | 1.5380 | 1.5230 | 1.5680 | Closed | -150 | -1.00% |
| AUD/USD | Short | .7050 | .7200 | .6750 | Open | – | – |
| GBP/USD | Short | 1.5120 | 1.5270 | 1.4820 | Open | – | – |
All in all, the forex system is down 153 pips or 1.02% for the week. Bahh, that caps off the forex mechanical system’s impressive winning streak since the start of Q4, as trends appear to be exhausted already.
Think these range-bound conditions are likely to carry on? And should I be adding yet another technical indicator to filter out the signals during this type of market environment?