Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review February 25th, 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)

EURGBP – My idea here was “On the H1 chart, we had a bullish divergence that has formed between the first low that has formed at 0.83339 and the second low that has formed at 0.83109 based on the MACD indicator. Then the price moved higher and broke above the last high at 0.83562 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 strong support zone (marked in blue) 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 this pair my short term view was bullish and I was expecting the price to move higher further until the strong support zone holds. The price moved lower, reached the strong support zone, respected it and then the price which is currently moving higher has delivered around 80+ pips move so far.

GBPAUD – My idea here was “Looking at the H4 chart, we could see that 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 evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Also, while measuring the first two waves of this bearish trend pattern using the Fibonacci expansion tool we have a key support zone that has formed based on the 161.8%(1.87052) Fibonacci expansion level of the first wave and the 100%(1.86838) Fibonacci expansion level of the second wave. Price has currently reached this key support zone and in addition to this, we have a potential bullish divergence that has formed between the first low that has formed at 1.88010 and the second current low that has formed at 1.87047 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as another evidence favoring the short term bullish view. So based on all this, my short expectation is bullish and my mid term expectation is bearish here”.

Current Scenario – In GBPAUD my short term view was bullish and my mid term view was bearish. The price moved exactly as per my plan here, the short term bullish move happened from the key support zone and delivered 160+ pips move. Then the price moved lower further as I expected it to and has delivered 310+ pips move so far.

USDJPY – My idea here was “On the H4 chart, the price which was moving higher reached a key resistance zone formed by the 100%(116.390) Fibonacci expansion level of the first wave, respected it and bounced lower from this zone. In addition to this, we had a bearish divergence that has formed between the first high that has formed at 115.683 and the second high that has formed at 116.337 based on the MACD indicator, which we may consider as evidence of bearish pressure. Also, the price which was moving lower has broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. In addition to this, we could see that 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 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 this key 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 – My plan still remains the same here, that is until the key resistance zone holds my short term view here is bearish and I expect the price to move lower further.

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