The system works! Okay fine, I didn’t get a winning signal, but at least my filters saved me from getting caught in a false move three times this week!
First, the MAs crossed over on Wednesday, but both the Stochastic and 30-pip filters prevented me from getting triggered. It was good thing too, as the pair found support at the 1.3200 handle.
Then yesterday, I got back to back signals, but the 30 pip filter wasn’t hit! Phew! The support level at 1.3200 seems to be holding too, so we’re not seeing as strong a trend as we’ve seen in previous weeks.
So yes, I didn’t get a trade in again, but hey, it’s better than losing right?!
This week was a wacky one as the major seemed unable to pick a direction! While GBP/USD and EUR/USD are currently trading lower from their week open prices, the losses aren’t as severe from two weeks ago. In fact, I’d even say that those pairs mostly ranged!
And I guess this just goes to show that traders are unsure of where to take the pairs now. On the one hand, euro zone is still plagued with debt problems, which is evident in Fitch’s downgrade of Ireland’s credit rating to BBB+ from A+. On the other hand, U.S. economic data isn’t doing too well, with last week’s NFP report coming out waaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaaay below expectations.
Personally, I’m dollar bullish (which means bearish on every other currency out there), as I think the current uncertainty economic environment will make traders risk averse. But hey, I’m just a forex newbie, so take that with a grain of salt!
Anyway, it’s almost the end of the year, I have to review my system and see how it’s done over the past year. So once I’m done doing my Christmas shopping, I’ll go over my stats (for the HLHB, not my vitals, mind you) and post it here on my blog.
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