HHI4X Trading System - Beta Version

This is a short video on the basics of the HHI4X forex trading system. I use it primarily on the GBP-USD. As with all indicator based systems, it follows the trend, and gives an idea as to which way you should be trading in the short-medium term.

If you have any ideas on this system, drop me a line. I have been adding key support and resistance levels on my charts and use them as areas for profit taking and stop losses. Also if you see the moving averages consolidating for a day or so, it could mean that a major move might be coming.

Asian Open Strategy GBP-USD

Refer to previous post for explanation of the strategy. We had a nice bounce off the previous days high. (New day GMT) I banked 20 pips because I could not be in front of the computer. That is my default set it and forget it target. You can see that the trade gave much more than that though. I'm still looking for a bit more of a pull back before going long on a swing type trade. It has taken awhile to bank the 20, not like more volatile times when you can get that in under 5 minutes.

GBP-USD Sideways 10-16-08, 7:30pm EST

It seems like we are in a bit of a range with the 30m chart looking like it wants to break through the 1.7353 level.This is a perfect set up for an Asian open trade strategy. For the most part you don't see new highs or new lows during the Asian session which starts at 7pm EST. I trade the open only when price is close to the days high or low. In this case, price is hovering right at today's high. You can play a bounce off the level, trying to get as good of an entry price as possible. I usually try to stay within 5 pips of the high or low. Beware of some brokers that widen their spreads during low volume hours. Yesterday my spread was 14 pips. I found that out the hard way, after I entered the trade. That was through FXCM. I also have accounts with Oanda and right now their spread is 8. Thats why it is key to get in at the right price.
Enough with my ADD tangents. If price breaks 10 pips beyond the high or low during the early hours of the Asian open, there is a good chance it will continue to drift making for an easy 20+ slow moving trade. If price is repelled by the highs or lows, you can trade the bounce for the same. It is never a sure trade, but it is a pretty high % system. Right now, price is through the 55S & 200E according to the HHI4X$ system. We will need to see a good move north to confirm my long bias for this pair.

Be careful out there,

Jeff

Eye on GBP-USD

We are getting close to a possible trend change. Personally, I'm looking to buy dips using the HMA Modified indicator on the 30m chart. We are getting close to the 55SMA crossing the 200 EMA. If we have good angle & seperation of the MA's, it could turn out to be the start of a nice move. Click the picture to get an explanation of why this looks like a potential trend change. This trading system can last a few days to a few weeks. I trade the signals as they come up, adding to my positions and adjusting stops.

End of USD Strength?

Judging from a technical standpoint, the USD may lose some steam in the coming weeks. I for the life of me cannot figure out why investors would be flocking into bonds to make less than the inflation rate just to keep their dollars safe. My neighbors investment adviser saw this coming and moved all his $ into bonds just before the bottom fell out. Wouldn't we all have liked to have seen this coming?
I will be looking at Cable this week as all of it's crosses look like they are in the oversold area. I once asked a leading CFA what he likes to see as far as chart patterns. His answer still rings in my ears to this day, "I like to see long wicks." We have plenty of them to choose from this week. It is sure to be a wild trading week again.

Never risk more than 3% on any one trade. Preservation of capital is key. Live to trade another day.

Jeff