Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review February 4th, 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)

CHFJPY – My idea here was “Looking at 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 123.655 and the second low that has formed at 123.546 based on the MACD indicator. The price then moved higher and broke above the last high at 124.101 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, based on the Stochastic Oscillator, we could see that the price is nearing the extreme, if it reaches the extreme we may then consider it as evidence of bullish pressure. Also, currently there are no signs opposing this bullish view. Until the key support zone holds my view remains bullish here and I expect the price to continue higher further after pullbacks”.

Current Scenario – In this pair, after the breakout of the downtrend line, my idea here was to look for pullbacks and then further continuation higher. The price moved exactly as I expected it to here. The pullback that I was looking for happened and then the price moved higher and has delivered around 100 pips move so far.

GBPAUD – My idea here was “On the H1 chart, the price which is moving lower has created a double wave down. We also have a bullish divergence that has formed between the first low that has formed at 1.89851 and the second low that has formed at 1.89284 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, this bullish divergence supports the H4 bullish hidden divergence which we may consider as another evidence of bullish pressure. 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 have two key support zones that has formed, the first key support zone is formed by the 61.8%(1.89628) Fibonacci expansion level of the first wave. The second key support zone is formed by the 100%(1.88758) Fibonacci expansion level of the first wave. Until both these key support zones hold my short term view remains bullish here. If we get a valid breakout above the downtrend line shown in the image below we may then consider it as a validation for this bullish view and may expect the price to move higher further”.

Current Scenario – In this pair I was expecting the price to move higher further in the short term until the two key support zones hold. Also, I mentioned that “If we get a valid breakout above the downtrend line shown in the image below we may then consider it as a validation for this bullish view and may expect the price to move higher further” The price moved exactly as per my plan here, the validation for the bullish view which is a valid breakout above the downtrend line happened and then the price moved higher further delivering 170+ pips move so far.

NZDCHF – My idea here was “Looking at the H4 chart, we could see that the price which is moving lower has created multiple false breaks with a bullish divergence between the first low that has formed at 0.60876 and the second low that has formed at 0.60740 based on the MACD indicator, we may consider these as evidences of bullish pressure. We also have this bullish divergence on the CCI indicator as well, which we may consider as yet another evidence of bullish pressure. So based on all this my view here is bullish and if the price moves higher and if we get a valid breakout above the high at 0.61450 we may then consider it as a validation for the bullish view and may expect the price to move higher further. Alternatively if the price moves lower, breaks and holds below the key support zone then this bullish view will be invalidated”.

Current Scenario – My plan still remains the same here, that is until the key support zone holds my view here is bullish and I expect the price to move higher further.

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