Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of November 20th 2023 is here. It is now time to recap and summarize the trade setups that we had during the last week. Below you will find a short explanation of all the trade setups we had last week and how it has currently developed now.

Trading Ideas (Blog Posts)

AUDCHF – 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, and 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 and the price which is moving lower has reached a strong support zone. Also, we could see that the price which is moving lower created a bullish hidden divergence between the first low that formed at 0.56136 and the second low that formed at 0.57718, followed by a continuing bullish divergence between the first low that formed at 0.57718 and the second low that has formed at 0.57247 based on the MACD indicator, which we may consider as evidences of bullish pressure. In addition to this, based on the Stochastic Oscillator we could see that the price is nearing it’s extreme. There are two possible scenarios from here, the price might move higher from the current zone or alternatively if it moves lower then the next area to look for bullish setups with bullish evidences would be the second strong support zone. Until both these strong support zones (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”.

Current Scenario – In AUDCHF, my short term view was bullish until the two strong support zones hold. The price action is following the bullish expectations so far, my plan still remains the same here.

GBPUSD – My idea here was “On the H4 chart, currently we have a strong bullish momentum and 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 strong bullish environment as well. 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 GBPUSD, I was expecting the price to move higher further after pullbacks until the strong support zone holds. The price action followed my analysis exactly as I expected it to here. The pullback that I was looking for happened and then the price moved higher further and has delivered 130+ pips move to the upside!

Dollar Index – My idea here was “On the H1 chart, currently, we have a strong bearish momentum and the price which is moving lower has broken below a strong support zone and is holding below it, we may consider this as evidence of bearish pressure. After the breakout, this strong support zone is acting as a strong resistance zone for us. Also, 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 has also created lower lows based on the MACD indicator, which is another sign of gaining momentum toward the bearish side. Also, 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. So the bottom line here is that, everything looks good here for the bears and I expect the price to move lower further in the short term after pullbacks until the strong resistance zone (marked in red) shown in the image below holds”.

Current Scenario – In Dollar index, based on the above-mentioned analysis, until the strong resistance zone holds I was expecting short term bearish moves to happen after pullbacks. The price action followed my analysis exactly as I expected it to here. We had a pullback and then the price which is moving lower has delivered a nice move to the downside!

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