Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review April 22nd, 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)

AUDUSD – My idea here was “On the H1 chart, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed at 0.73508 and the second low that has formed at 0.73423 based on the MACD indicator. The price then moved higher and broke above the last high at 0.73779 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. Hence as per the book scenario, after a bullish convergence, we may look for corrections to happen and then further continuation to the upside. Currently it looks like a correction is happening. In addition to this, the ADX indicator gave a bullish signal here as well 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. Until the H4 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 my short term view was bullish and I was expecting the price to move higher further until the key support zone holds. The price action followed my analysis exactly as I expected it to here. After the bullish convergence we had a pullback and then the price moved higher further delivering 100+ pips move before the price moved lower.

GBPAUD – My idea here was “On the H1 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed on 13th April 2022 and the second high that has formed on 18th April 2022 based on the MACD indicator,which we may consider as evidence of bearish pressure. Then the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as another evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. 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 which we may consider as yet another evidence of bearish pressure. Until the strong resistance zone (marked in blue) shown in the image below holds my short term view remains bearish here and I expect the price to continue lower further after pullbacks”.

Current Scenario – On the H1 chart, my short term 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 and delivered 100+ pips move before it moved higher.

AUDCHF – My idea here was “On the H4 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 was 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. 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. The price which is moving inside this range has reached the bottom of this range, respected it, and bounced higher from this zone. Currently the price has reached the top of this range. Also, 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. Also, currently there are no signs opposing this bullish view. Until the bottom of the range holds my view remains bullish here. A valid breakout above the top of the range would be the validation for this bullish view, we may then expect the price to move higher further”.

Current Scenario – In this pair, the validation for the bullish view which is a valid breakout above the top of the range didn’t happen yet. My plan still remains the same here, that is “if we get a valid breakout above the top of the range we may then consider it as a validation for this bullish view and may expect the price to move higher further”.

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