HLHB Trend Catcher System
Remember that signal I pointed out last week on my HLHB Trend Catcher system? As it turns out, the second position would’ve closed with a 335-pip win at 1.4187 when another crossover materialized. Cha-ching!
However, the upward crossover turned out to be a fakeout as another downward crossover materialized soon after. A sell order at 1.4047 would’ve been a valid trade then since RSI hinted that the downtrend was strong (<50) and ADX was above 20.
However, that trade would’ve ended with a 32-pip loss as ANOTHER upward crossover materialized. Going long at 1.4079 would’ve been a valid trade but that too would’ve ended up as a loser as the EMAs crossed over again.
Thankfully, the last trade for the week, a short at 1.4074, seems promising. The first profit target would’ve already been hit at 1.3924. Let’s see where the second position closes!
As for my GBP/USD trade, it looks like I’ve missed the boat. I thought that I could jump in on the trend when the Halifax HPI, manufacturing production, and industrial production reports were released last Wednesday. But the pair didn’t quite reach the 50% Fibonacci retracement level, which was the area I was eyeing for my entry.
I mentioned in my plan that I wouldn’t leave any order on because I preferred to wait for candlesticks as confirmation. I figured that it was already a missed trade so I canceled my short orders. Little did I know that price would actually jump back up to 1.6050 again yesterday. Grr!
I guess I was too conservative, huh? I haven’t had a winning trade in a while and I feel like I’ve lost a bit of my trading swag.
At the start of the week, I had a feeling that the August NFP report would set the tone for the week’s trading and that the dollar would rally on risk aversion. Apparently, my gut feeling was right but I wasn’t able to capitalize on the dollar’s rally because I was afraid of losing. Ugh!
I wonder if the dollar’s strength will be sustained until next week…
“Stop right there Huck!”
Before I start analyzing market sentiment, I think I need to focus on my trading mindset. I’ll probably need to unwind this weekend and get rid of all the negative vibes. But I don’t know what I should do! You guys have suggestions how? Share them to me please!
This content is strictly for informational purposes only and does not constitute as investment advice. Trading any financial market involves risk. Please read our Risk Disclosure to make sure you understand the risks involved.