The majors saw decent price action this week but the HLHB took a chill pill from validating crossovers.
I’ve got the numbers from the last few days’ trading!
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
The bulls eventually gained control, though, and managed to limit the euro’s losses to the support seen in the first half of the week.
No open trade or new valid signal from the HLHB this week, which means that I’ll have to wait a bit more for EUR/USD’s price action to contribute to the system’s P/L.
GBP/USD
Cable shot up by more than 150 pips in the first few days of trading but ranged around its weekly highs before some profit-takers brought GBP/USD back down to near its weekly open prices near the end of the week.
No new signal from the pound this week, but price shot up high enough for me to close last week’s long trade for a profit this week. I got 101 pips before the adjusted stop loss was hit!
USD/JPY
USD/JPY also yielded one valid signal but it didn’t show up until Friday so I probably won’t know the results until I see next week’s price action.
For now, the HLHB capped the week with a net gain of 83 pips (+0.28%).
Here’s a summary of the open and closed trades from the last couple of days’ worth of trading:
