Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of April 28th 2023 is here. It is now time to recap and summarize the trade setups that we had during this week. Below you will find a short explanation of all the trade setups we had this week and how it has currently developed now.

Trading Ideas (Blog Posts)

AUDJPY – My idea here was “On the H1 chart, we should note that the price which was creating series of higher highs, higher lows structure so far in recent times has created lower lows for the first time which we may consider as a sign favoring the bears. In addition to this, we have this lower lows on the MACD indicator as well, which is a sign of gaining momentum towards the bearish side. Also, we have a good uptrend line that has formed and the price which was respecting this dynamic support so far has currently broken and is holding below it, we may consider this as another evidence of bearish pressure. Also, based on the Parabolic Sar we could see that the dots are above the price here as well which we may consider as yet another evidence of bearish pressure. So everything looks good here for the bears here as well and until the two strong resistance zones (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further”.

Current Scenario – In AUDJPY, based on the above-mentioned analysis I was expecting the price to move lower further in the short term until the strong resistance zones hold. The price action followed my analysis exactly as I expected it to and the price moved lower further delivering 170+ pips move to the downside!

USDCAD – My idea here was “On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as another evidence of bullish pressure. Generally, after a bullish trend pattern, we may expect corrections and then potential continuation higher. 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. Currently, it looks like a correction is happening, 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 shown in the image below(marked in green) holds my short term view remains bullish here and I expect the price to move higher further after pullbacks”.

Current Scenario – Based on the above-mentioned analysis my short term view was bullish here and I was expecting the price to move higher further until the two strong support zones hold. After the bullish trend pattern the price didn’t provide the deeper pullback that I was looking for and it continued the rally after smaller pullback and has delivered a nice move to the upside so far.

SP500 – My idea here was “On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, and lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then a further continuation lower. Currently, it looks like a correction is happening. Also, we had two strong support zones that have formed, the price moved lower broke 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. So the bottom line here is that the H1 chart has evidences supporting the bearish view. Until the two strong resistance zones (marked in red) shown in the image below hold my short-term view remains bearish here and I expect the price to move lower further”.

Current Scenario – In SP500, currently, the price has reached the second strong resistance zone, respected it and is bouncing lower from it. Until the second strong resistance zone holds my short term bearish view still remains the same here.

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