Fakeout parade!
Thanks to tight ranges and a lot of fakeouts, the HLHB sustained a 187-pip dent from closing a bunch of trades.
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
Unfortunately, the HLHB only validated a short signal that led to last week’s long trade closing at a loss and an 89-pip dent for the trend-catcher.
The HLHB has no open position on EUR/USD going into next week, but I hope it validates a signal on the right side of trends next week!
GBP/USD
As you can see, Cable ranged tightly for most of the week and only made significant moves at the beginning and end of the week.
Too bad the consolidation produced a lot of fakeouts! The parade of SMA crossovers three losing trades and one winning position. The HLHB currently has a long trade going so my fingers are crossed for more GBP gains!
USD/JPY
The third trade remains open with my stops adjusted to a maximum of 61 pips. Think we’ll see more dollar weakness in the next few days?
Here’s a summary of the open and closed trades from the last couple of days’ worth of trading:
