Hi Traders! Weekly summary and review January 21st, 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)
GBPCHF – My idea here was “Looking at the H4 chart we could see that the price has created a bullish hidden divergence between the first low that has formed at 1.21428 and the second low that has formed at 1.24712 based on the MACD indicator which we may consider as evidence of bullish pressure. So the bottom line here is that the H4 chart has evidence supporting the bulls. Also, we have two key support zones that has formed, the first key support zone is formed by the 23.6%(1.24963) – 38.2%(1.24770) Fibonacci retracement levels of the big bullish move. The second key support zone is formed by the 50%(1.23710) – 61.8%(1.23150) Fibonacci retracement levels of the big bullish move. Until both these key support zones hold my short term view remains bullish here”.
Current Scenario – In GBPCHF my view was bullish and I was expecting the price to move higher further until the two key support zones hold. The price failed to hold in the first key support zone. Currently the price is holding in the second key support zone. Until the second key support zone holds my bullish view still remains the same here and we may look for new bullish opportunities with bullish evidences in order to join the bulls. Alternatively if we get a valid breakout below the second key support zone then this bullish view will be invalidated.
Litecoin – 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, 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. Also, 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, we may consider this as yet another evidence of bearish pressure. Until the strong resistance zone (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 – On the H1 chart, my view was bearish and I was expecting the price to move lower further until the strong resistance zone holds. The price action followed my analysis exactly as I expected it to here. After the bearish trend pattern the pullback that I was looking for happened and then the price moved lower further delivering an excellent move to downside!
NZDCHF – My idea here was “On the H4 chart, the price is moving inside a range which started on 6th December 2021. This range is formed by the highs and lows reaching parallel support and resistance zones. The price which is moving inside this range has currently reached the bottom of this range. While measuring the first wave inside this range using the Fibonacci expansion tool the 61.8%(0.61778) Fibonacci expansion level coincides with the bottom of the range which makes this area a key support zone for us. In addition to this, we have a bullish divergence that has formed between the first low that has formed at 0.61879 and the second low that has formed at 0.61857 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, we have a bullish engulfing candle pattern that has formed which we may consider as yet another evidence of bullish pressure. In addition to this, based on the Stochastic Oscillator, we could see that the price has reached its extreme which we may consider as yet another evidence of bullish pressure. So based on all this, until the key support zone holds my short term view remains bullish here and I expect the price to move higher further”.
Current Scenario – In this pair, the price action didn’t follow my analysis and this idea failed as the price moved lower and broke below the key support zone and is holding below it. My current view on this pair is neutral.
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To your success,
Vladimir Ribakov
Certified Financial Technician
