The HLHB may have caught most of the decent moves, but there were just too many fakeouts 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.
A trade is only valid if RSI crosses above or below the 50.00 mark when the signal pops up. And in this version, I’m adding ADX>25 to weed out the fakeouts.
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/USD
While the HLHB validated a long trade right before the euro shot higher, it also validated TWO signals that popped up when the pair was ranging tightly.
This is why the HLHB need the week down by a net of 20 pips with one short trade still open to start next week.
GBP/USD
The HLHB didn’t validate any of the crossovers from Cable this week, which is fortunate because GBP/USD traded in a wide range and didn’t really see one-directional moves in the last couple of days.
I hope we see more trendy moves from the pound in the days ahead!
USD/JPY
The HLHB validated one crossover from USD/JPY and it’s still open with its stops adjusted to limit the losses to 79 pips. Not bad, I think.
Here’s a summary of the open and closed trades from this week’s trading:
