Can you believe how many ranges we saw last week?!
I can, and only because I have the number of fakeouts that this trend-catcher had to deal with from three major dollar pairs.
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
In fact, the pair didn’t see any action until Friday’s London session when traders started buying the U.S. dollar ahead of the U.S. CPI reports.
The HLHB saw three new valid signals but lost a net of 2 pips thanks to a 12-pip loss from one trade.
GBP/USD
Talk about a see-saw! There were no big economic data points from the U.K. but risk sentiment and overall dollar demand kept GBP/USD bulls and bears on each others’ toes for most of the week.
As exciting as the rollercoaster moves were, it was bad for my trend-catcher system, which validated FOUR signals and netted a 38-pip loss from closing three trades. Boo!
USD/JPY
Well, it kinda made new intraweek highs near the end of the week, but the moves were so choppy that it was difficult to position trend trades then.
The HLHB ended up validating two new signals but the results ended in a tie. What’s up with that?!
Here’s a summary of the open and closed trades from the last couple of days’ worth of trading:
