Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of May 17th 2024 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.
Ripple – My idea here was “On the H4 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. In addition to this, the ADX indicator gave a bearish signal here 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 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 Ripple, the price action is following the bearish expectations so far. My plan didn’t change here, that is, I expect the price to move lower further in the short term after pullbacks until the two strong resistance zones (marked in red) shown in the image below holds.
GBPAUD – 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 flat correction is happening in the form of a range. This range is formed by the highs and lows reaching parallel support and resistance zones. A valid breakout below the bottom of the range would be the validation for this bearish view. Alternatively if we get a valid breakout above the top of this range then this bearish view will be invalidated”.
Current Scenario – In GBPAUD, on the H1 chart, the price is still moving inside the range. My plan still remains the same here, that is “a valid breakout below the bottom of the range would be the validation for this bearish view. Alternatively if we get a valid breakout above the top of this range then this bearish view will be invalidated”.
GBPCAD – 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. Also we had a strong resistance zone that have formed and the price which is moving higher has broken above this zone and is holding above it. After the breakout, this strong resistance zone is acting as a strong support zone for us. So everything looks good here for the bulls and until the strong support zone (marked in green) shown in the image below holds my short-term view remains bullish here and I expect the price to move higher further after pullbacks”.
Current Scenario – In GBPCAD, the price action is following the bullish expectations so far. Currently, it looks like a pullback is happening, until the strong support zone holds my short-term view still remains bullish here and I expect the price to move higher further after pullbacks.
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Happy Trading!
Arvinth Akash
Home Trader Club Team.
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