It was a week for big gains and big losses after the major dollar pairs went all over the charts last week.
Before we talk numbers, 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.
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 was on a slow and steady downtrend for most of the week, which was a good thing for the short trade that the HLHB had been nursing since last week.
A new valid signal ended the HLHB’s party though, and the short trade closed with a cool 299 pips.
The new trade remains open but can only lose a maximum of 132 pips next week.
Cable also traded in a downtrend but, unlike in EUR/USD, the HLHB caught a fakeout that steered the trend-catcher in the opposite direction of the week’s trend.
I had to close the long trade with a 136-pip loss when GBP/USD eventually hit the adjusted stop loss. Boo!
There were no fresh valid signals from USD/JPY this week. I’m not too sad about it though!
As you can see, USD/JPY ranged tightly until it broke out in a fast and fierce upswing that could’ve done a lot of damage had the HLHB been on the other side of the move.
I think I’ll wait and see if there are more observable intraweek trends to make pips for the HLHB in the next few days.
Here’s a summary of the open and closed trades from the last couple of days’ worth of trading: