Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review March 18th, 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)

USDCHF – My idea here was “Looking at the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies here as well in upward moving market conditions so it basically reflects a bullish environment. 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”.

Current Scenario – In USDCHF my view was bullish and I was expecting the price to move higher further until the two strong support zones hold. The price action is following my analysis so far. Currently, it looks like a pullback is happening and the price which is moving lower has reached the first strong support zone. Until both these strong support zones hold my bullish view still remains the same here.

AUDUSD – 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 in the form of potential double wave down. 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 a key support zone that has formed based on the 100%(0.71649) Fibonacci expansion level of the first wave and the 61.8%(0.71480) Fibonacci retracement level of the bullish trend pattern. The price is currently bouncing higher from this key support zone, if we get a valid breakout above the most recent downtrend line shown in the image below (marked in blue) 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 until the key support zone holds. Also, I mentioned that “If we get a valid breakout above the most recent 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 110+ pips move so far.

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

Oil – My idea here was “On the H1 chart, the price which was moving lower reached a key support zone that has formed by the 61.8%(92.590) Fibonacci expansion level of the first wave. The price respected this zone and is currently bouncing higher from this zone. Also, we could see that the price which was moving lower created a bullish divergence that has formed between the first low that has formed on 15th March 2022 and the second low that has formed on 16th March 2022 based on the MACD indicator. The price then moved higher and broke above the last high at 97.888 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. 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 these as evidences of bullish pressure. So based on all this, my short term view here is bullish and I expect the price to move higher further after pullbacks”.

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