Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review March 11th, 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.
NZDCHF – My idea here was “On the H4 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 is happening. Also, 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. 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. Also, we had two strong resistance zones that has 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. Until both these strong support zones hold my view remains bullish here and I expect the price to move higher further”.
Litecoin – My idea here was “On the H1 chart, we had a bullish divergence that has formed between the first low that has formed at 98.06 and the second low that has formed at 96.16 based on the MACD indicator. Then the price moved higher and broke above the last high at 103.78 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 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”.
Dollar Index – My idea here was “On the H4 chart, we could see that the price which was moving higher has created higher highs here as well based on the MACD indicator, which is a sign of gaining momentum towards the bullish side. Currently, it looks like a pullback is happening with the price creating a bullish hidden divergence that has formed between the first low that has formed at 96.440 and the second low that has formed at 97.765 based on the MACD indicator which we may consider as another evidence of bullish pressure. Also, we had two strong resistance zones that has 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. Until both these strong support zones hold my view remains bullish here and I expect the price to move higher further”.
Current Scenario -In Dollar Index my view was bullish and I was expecting the price to move higher further in the short term until the two strong support zones hold. The price action followed my analysis exactly as I expected it to here. The pullback that I was looking for happened and the price which was moving lower respected the first support zone, and bounced higher from this zone, delivering 100+ pips move so far.
For similar trade ideas and much more I invite you to join the Traders Academy Club and improve your trading with us.
You will also find a pretty extensive database of educational materials here in the blog – just use the search or check out the Forex Education section above.
If you have any further questions, don’t hesitate to drop a comment below!
Happy Trading!
Arvinth Akash
Traders Academy Club Team.
As we approach the end of another remarkable year, it’s time to take a moment…
Hi Traders! Arvinth here from the Home Trader Club team. The weekly summary and, review of December…
The rally in U.S. stocks is encountering a fresh hurdle -- a potentially problematic rise…
Hi Traders! EURAUD short term forecast and technical analysis post is here. We do our…
Hi Traders! GBPCHF short term forecast follow-up and update is here. On October 3th, 2024…
Hi Traders! AUDJPY short term forecast and technical analysis post is here. We do our…
