Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review May 13th, 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)
EURCAD – My idea here was “Looking at the H4 chart, we could see that the price which is 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 short term view remains bullish here and I expect the price to move higher further”.
Current Scenario – In this pair my short term view was bullish and I was expecting the price to move higher further. After the higher highs the price which was moving lower has currently broken below the second strong support zone. This is a contradictory sign opposing the short term bullish view and this idea failed. My current view on EURCAD is neutral.
GBPCAD – My idea here was “On the H1 chart, we could see that the price which is 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 addition to this, 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, we may consider this 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 shown in the image below holds my short term view remains bullish here and I expect the price to move higher further”.
Current Scenario – The price action didn’t follow my analysis here and this idea failed as the price moved lower and broke below the second strong support zone and is holding below it. My current view on this pair is neutral.
EURNZD – My idea here was “On the H1 chart too, we have a bearish divergence that has formed between the first high that has formed at 1.68005 and the second high that has formed at 1.68412 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here as well 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 another evidence of bearish pressure. So everything looks good here for the bears here and if the price breaks below the low at 1.65663 with momentum we may then consider it as a validation for this short term bearish view and may expect the price to move lower further”.
Current Scenario – In this pair my short term view was bearish and I was expecting the price to move lower further until the key resistance zone holds. Also, I mentioned that “If the price breaks below the low at 1.65663 with momentum we may then consider it as a validation for this short term bearish view and may expect the price to move lower further. The validation for the short term bearish view which is a valid breakout below the low at 1.65663 didn’t happen here yet and my plan still remains the same here.
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Happy Trading!
Arvinth Akash
Traders Academy Club Team.
