Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review August 26th 2022 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find the short explanation of all the trade setups we had this week and how it has currently developed now.

Trading Ideas (Blog Posts)

Dax – My idea here was “On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. In addition to this, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. In addition to this, the ADX indicator gave a bearish signal here as well at the cross of -DI (red line) versus +DI (green line) and the main signal line (silver line) reads value over 25 which we may consider as yet another evidence of bearish pressure. Also, we had two strong support zones that has formed and the price which was moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in green) shown in the image below hold my short term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – In Dax based on the above-mentioned analysis I was expecting the price to move lower further in the short term until the two strong resistance zones hold. The price action followed my analysis exactly as I expected it to here. The price which was moving higher reached the first strong resistance zone, respected it and then it bounced lower from this zone, delivering a nice move to the downside so far!

AUDUSD – My idea here was “On the H4 chart, the price which was moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. Currently, it looks like a correction is happening, in addition to this, we have multiple bullish divergence that has formed between the first low that has formed at 0.69907 and the second low that has formed at 0.68557 based on the MACD indicator and CCI indicator. Also, we had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further”.

Current Scenario – In AUDUSD my expectation was bullish and I was expecting the price to move higher further until the two strong support zones hold. The price action is moving as per the plan here. The price which was moving lower reached the first strong support zone, respected it and then it moved higher from this zone delivering 120+ pips move so far!

Oil – My idea here was “On the H4 chart, the price which was moving lower created a bullish divergence which has formed between the first low at 86.348 and the second low at 85.338 based on the MACD indicator. The price then moved higher and has created higher highs. Also, we should note that the price which was in a bearish trend so far creating series of lower highs, lower lows has created higher highs for the first time in a while which we may consider as sign of a possible trend change. We may consider these as evidences of bullish pressure. In addition to this, the ADX indicator gave a bullish signal here at the cross of +DI (green line) versus -DI (red line) and the main signal line (silver line) reads value over 25, we may consider this as yet another evidence of bullish pressure. Until the key support zone (marked in blue) shown in the image below holds, my view remains bullish here and I expect the price to move higher further”.

Current Scenario – My plan still remains the same in Oil, that is until the key support zone holds I expect the price to move higher further after pullbacks.
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