When you set up an MA there is (usually) an option where you select on which basis it is calculated. If it is set to “close” then the MA is updated using only the close value of each candle as it completes. For example, a 10 period SMA would be an average of the “close” values of the latest ten bars/candles.
With very short term MAs like we are using, i.e. 5 and 10 periods, a strong close in either direction can have a disproportionate impact on the MA value and even cause crossovers that turn out to be fakes.
This can be minimised by calculating the MA using “typical” or “median” prices instead of “close”. The “typical” value is calculated for each new bar using the formula (high+low+close)/3. This is a kind of weighted average of the bar’s total movement instead of just where it closes. The “median” produces the same kind of smoothing effect by only using the bar’s high and low values to produce an average: (high+low)/2.
The difference is not huge but does give a smoother flow to the MA lines and helps to avoid false signals from exceptional close values.
Let me know if you have any problems with it - and, of course, you use whatever approach you feel works best! 
PS. I also use this smoothing with the RSI, but that is another issue. I don’t want to get into too many amendments here, and they are only my personal preferences anyway! 
Still better than a loss.
On what basis are you setting your stops? Are you using the settings according to HLHB or your own analysis of the most appropriate level?
Nice clear charts @MASSIMILIANO!
I also see the same positions but I am not taking any new positions now ahead of NFP.
This NFP is a kind of interesting data release. In my opinion, it is nowadays grossly overrated, when considering the current,US economic situation and modern Fed policies. In the past, it used to have a great, even horrendous, immediate impact on prices and that has given this release a kind of stigma that it is always going to be really and decisively important.
But I don’t really agree with that any more. The US economy is very strong and stable and with more or less full employment. We also, nowadays, have Central Bank policies that favour small, iterative actions such as regular 0.25% interest rate movements rather than less frequent but larger reactions.
This suggests to me that the monthly changes in US employment data are not likely to result in any sudden and significant reaction for the decision-makers, and therefore any abnormal market reaction to the release is unjustified in real terms and is only a remnant of the “old days” when the “whole world and its dog” waited for the release with baited breath. But such is the nature of free markets and the psychology of speculation….
…just some ponderings on a rainy day!
thank Manxx , especially for the analysis … for that I already close half position and thight the sl (few pips locked)… it is also friday
Here’s a link to Huck’s latest update for last week for those trying this method:
Remember that this is intended to be a mechanical system and her trades are entered and exited accordingly. But I see no reason why one cannot use the same (or similar) approach for entries but with a more discretionary approach to exits and stop adjustments.
Either way, whether one is trying to mechanically follow this to the letter or with a greater or lesser degree of personal discretion (or interfering, if you like!), it is good practice to go over her trades and compare with one’s own.
I confess, I still sometimes do not understand her exits. But if anyone else also has any queries on these maybe we can unravel them here jointly?
Hello All,
I’m a newbie in the Forex and I’m testing the HLHB system for the EUR/USD using a chart of 4 hours.
Currently I’m in a long position since it looks like all the indicators are green: MA(5) higher than MA(10) and RSI higher than 50 but in overbought zone (hope not a reverse sign 
). Total risk 1% of total capital.
Looks like a ascending channel is forming in the last couple of days I’m using the resistances/supports to define stop loss and profit target.
I was not aware about an update in the HLHB including the ADX, I will include it in the next trade.
Hi guuuuys! 
I’m sorry for not being able to post anything here over the weekend. 
The system just said to close any open trades by the end of the week so I was out of it by Friday night (here). 
BUT I’m watching over my charts now. 
I hope you guys had really really great weekends!
@anon46773462, how was your visit btw?
This was indeed one of the original criteria but it is not any more. If you look, for example, at those recent weekly updates that I posted links to above you can see that there are open trades from the previous week(s).
I have not been able to find a comprehensive, chronological, list of all the changes that have been made to this system but I have been compiling a chart of those which I have seen along the way. I will post it here later today.
Fine, thank you. A bit colder and wetter than hoped for but a good time and some nice peaceful sunsets…
Hi @Alberto.GP , nice to see you here!
A ciuple of points here. I noticed that your RSI is set to “close” values. But tte HLHB system has this set to “Median”. It gives a smoother line and fewer fakey dpikes. Might be worth changing. Also, the system takes no notice of any OB/OS lines on the RSI (usually set at 30/70 or 20/80)
Personally, I think it is a good approach to develop one’s own policies regarding stops and targets and your’s seems based on some sensible ideas. BUT, at the same time, I think it is worth bearing in mind that when we do this we are NOT testing the HLHB system at all!!! We are only using the same EMA values and RSI/ADX - but it is NOT the HLHB “system”.
I only mention this because I think it is important when, and if, one gets to the point of evaluating results. The authentic HLHB system is designed as a a mechanical system. It has specific entry rules and a stop/target currently of 150/400 pips respectively or a valid reverse signal. So if we are using our own criteria (which is perfectly ok) then we cannot describe the results, be they good or bad, as being the “HLHB system” test results.
Maybe I am just being overly “purist” here and just splitting hairs, but the authentic HLHB system has been around for many years already with only a few changes along the way, and I think it would be wrong to dilute or distort its true performance as a mechanical system by confusing it with various mutations of our own. The mutations, as such, are fine - we just should be careful to qualify them as such and not label them as HLHB systems.
Hi to all, yes as i remenber the position will not be closed … as i remenber criteria are 150 pips trailing and 400 tp… if you follow the rules … but as correctly Manxx said , this is the rule for the mechanical entry and exit…
Hi @Alberto.GP! Super psyched to have more people here. Haha. I just got in for EURUSD @1.17642 and I’m still unsure as to where the market’s heading. I guess I’d just have to keep my eyes glued to my charts.
Thank you for your patience with me @anon46773462! Huhu.You’re the best! I just went for the original one last week since I started out with it. I’ll do the tweaking this week to see if there would be any improvement or difference from the original.
P.S. Your view looks amazing! Huhu 
Looks so serene and peaceful. Your house must be located at a very scenic spot!!! Good for you!
This is how my chart looks like for GBPUSD:
So, I went long @1.32991 but I still have my TP at 100 pips and TS at 50 pips. 
I also kinda wanna trade realistically huhu so I don’t think I’d be able to afford a loss of 150 pips. HUHUHU. What do you guys think?
This is my chart for EURUSD:
Did you enter any trade Manxx? I also went long @ 1.17761 and I’m currently up by 12 pips. Huhu. It’s still very unpredictable though. 
HI to all, since i like to trade with MA , I have created a tread (because different method from this) at this link in case someone want partecipate
4h Trend Trading
[quote=“ria_rose, post:76, topic:156573”]
Your house must be located at a very scenic spot!!![/quote]
We actually live on the edge of a small town. The fotos are from our summer cottage which is just over an hour’s drive away - I like the feel of nature around me and its my hideaway place!
I went long of EU after the NFP on Friday. I just closed out half my position and will let the rest run until, well, until…
I am on semi holidays from trading for the time being doing some building work on the cottage and at home so I am really just in and out of positions for now. But I am following the HLHB as we go.
You are doing great!!!