Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review December 16th 2022 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)

CADJPY – My idea here was “Looking at the daily chart, based on the KTL indicator, we could see that the price which was moving lower was blocked by a daily support zone. The price respected this zone and is currently moving higher from it. Generally, after a bearish convergence, as per the book, we may expect pullbacks and then a further continuation lower. So, after the weekly bearish convergence currently, it looks like a pullback is happening on the daily chart. So until the two key resistance zones based on our KTL indicator (marked in blue) shown in the image below hold my view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – In CADJPY, the price action moved as per my analysis. We had a pullback and then the price moved lower and it delivered around 200 pips move so far!

You can see this move clearly on the H1 chart below.

Ethereum – 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. In addition to this, we could see that the price which was moving higher has created higher highs based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Also, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, and 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 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 until the two strong support zones hold. The price respected the first strong support zone and it moved higher and provided a short move to the upside until it was blocked by a bearish divergence. The price then moved lower and has broken below both the support zones. My current view on Ethereum is neutral.

USDCAD – My idea here was “On the H1 chart, the price has created a bullish trend pattern here as well 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 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. 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 a value over 25, we may consider this as yet another evidence of bullish pressure. Also, there are no signs of a trend change at the moment. Until the key support zone shown in the image below (marked in green) holds my short-term view remains bullish here. A valid breakout above the top of the range would be the validation for this short-term bullish view, we may then expect the price to move higher further”.

Current Scenario – The validation for the bullish view which is a valid breakout above the top of the range happened here as per the plan. We then had a pullback and then the price moved higher further delivering 70+ pips move so far.

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