Hi Traders! Weekly Summary And Review May 14th, 2021 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 in this week and how it has currently developed now.

First, we will see the trade ideas that I shared in my blog:

Trading Ideas (Blog Posts)

GBPCAD – My idea here was “Looking at the H4 chart we have a bullish divergence that has formed between the first low that has formed on 4th May 2021 and the second low that has formed on 7th May 2021 based on the MACD indicator, which we may consider as evidence of bullish pressure. Also the ADX indicator gave a bullish signal 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 another evidence of bullish pressure. If we get a valid breakout above the high at 1.71300 (marked in blue line) we may then consider it as a validation for the bullish view and may expect the price to move higher further”.

Current Scenario – The validation for the bullish view which is a valid breakout above the high at 1.71300 happened as I expected it to. Currently it looks like a pullback is happening, my bullish view still remains the same here until the strong support zone holds.

Uk100 – My idea here was “On the M15 chart we have a bullish divergence that has formed between the first low that has formed at 6898.30 and the second low that has formed at 6881 based on the MACD indicator. Then the price moved higher and broke above the high at 6962.75 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. Also the ADX indicator gave a bullish signal 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 another evidence of bullish pressure. Until the strong support zone shown in the image below holds my view remains bullish here and I expect the price to move higher further in the short term”.

Current Scenario – After the bullish convergence the pullback that I was looking for happened and then the price moved higher and provided a short move to the upside until it was blocked by a bearish divergence.

NZDJPY – My idea here was “On the H1 chart, the price which is 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. 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 yet another evidence of bearish pressure. Also, we have a strong support zone that has formed and the price which is moving lower has broken below this zone and is holding below it, we may consider this as another evidence of bearish pressure. Currently, this strong support zone is acting as a strong resistance zone for us. Until this strong resistance zone holds my view here is bearish and I expect the price to move lower further after pullbacks”.

Current Scenario – The price has currently reached the strong resistance zone, until this zone holds my bearish view still remains the same here.

Note: You can follow me here on Trading View and also on my blog to get similar ideas on daily basis)

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