Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of August 4th 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)

Dax – My idea here was “On the H1 chart, the price which was moving higher has reached a key resistance zone that has formed based on the 61.8%(16576.69) Fibonacci expansion level of the first wave. This key resistance zone coincides with the H4 key resistance zone, which makes this a very strong powerful zone. The price which is moving higher has reached this zone, respected it and is bouncing lower from it. Also, we have a bearish divergence that has formed between the first high that has formed at 16447.80 and the second high that has formed at 16531.80 based on the MACD indicator which we may consider as evidence of bearish pressure. Also, the price which is moving lower has broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. 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. So everything looks good here for the bears and until the key 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 – In Dax, my short term view was bearish and I was expecting the price to move lower further until the key resistance zone holds. The price action followed my analysis and the price moved lower further as I expected it to and delivered a fantastic move to the downside as you can see in the image below!

EURNZD – My idea here was “On the H1 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 has happened in the form of double wave to the downside. The price respected a strong support zone and bounced higher from this zone. Also, the price which is moving higher has broken above the most recent downtrend line, we may consider these as other evidences of bullish pressure. Also, 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. So based on all this, until the strong support zone 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 – In EURNZD, I mentioned that until the strong support zone holds my short-term view was bullish and I expect the price to move higher further after pullbacks. The price action followed my analysis exactly as I expected it to. We had a small pullback and then the price moved higher and has delivered 110+ pips move so far!

USDCAD – 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, we could see that the price which is moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. 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 have 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. So based on all this, until both these strong support zones shown in the image below (marked in green) hold 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 higher highs 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!

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