InstaForex

September 27, 2021

HLHB Trend-Catcher System Update (September 20 – 24)

 The HLHB started the week on the wrong side of intraweek trends.


Fortunately, one very fortunate USD/JPY signal has the potential to turn things around for this trend-catcher.


Before I show you last week’s numbers, make sure to read all about my HLHB Trend Catcher System if this is your first time hearing about it!


Trend Catcher SystemBasically, 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



EUR/USD traded in a wide range for most of the week though it did see new weekly lows around the FOMC’s event.

Unfortunately for the HLHB, it had a long trade left over from the previous week. This did not go well when EUR/USD dropped to sub-1.1700 levels.


By the end of the week, the HLHB had lost 114 pips from EUR/USD. And there’s not even a new valid signal!


GBP/USD


Cable started the week on a downtrend that only lost momentum when the pound reached 1.3600 levels.

Trending price action is good. What’s not good is the HLHB nursing a long trade when price is trending in the opposite direction.


There are no new valid signals for GBP/USD this week but I hope we see new ones in the next couple of days!


USD/JPY



The HLHB also had an open trade on USD/JPY from the previous week but it looks like the forex gods were more open to cooperation.

See, USD/JPY yielded two new valid signals for the trend-catcher. What’s more, they showed up pretty near the start of the intraweek trends!


Last week’s signal ended with a 7-pip win while Signal #1 closed with a 50-pip profit.


I’m more excited how the open trade turns out though. The stop loss is adjusted so that the trade can only lose 7 pips and it looks like USD/JPY still has bullish momentum on its side!


I hope I haven’t jinxed the move.