Weekly Summary And Review May 21st 2021

Hi Traders! Weekly Summary And Review May 21st, 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)

Ripple – My idea here was as follows “On the H4 chart after the strong bullish move currently it looks like a consolidation is happening in the form of a triangle pattern. The price which is moving inside this pattern has currently reached the to of it. In my point of view, there are three possible scenarios from here, which are as follows:

Scenario 1

If the price moves higher, breaks and holds above the strong resistance zone around
1.63 – 1.64 area shown in the image below, we may then consider it as a validation for the bullish view. We may then expect the price to continue higher further.

Scenario 2

Alternatively if the price respects the top of this pattern and moves lower, then the next area to look for bullish setups with bullish evidences would be the key support zone shown in the image below.

Scenario 3

Alternatively if the price moves lower and breaks below the triangle pattern then the next area to look for bullish setups with bullish evidences would be the strong support zone that has formed between the area of 0.80 – 0.70 shown in the image below.

So based on these three possible scenarios my view here is bullish and I expect the price to move higher further”.

Current Scenario – In Ripple the price action didn’t move as per scenario 1 and 2. Currently the price has broken below the triangle pattern and is moving lower. Scenario 3 is still valid, so until the strong support zone between 0.80 – 0.70 holds my bullish view still remains the same here.

 

 

EURAUD – My idea here was “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, also based on the Parabolic Sar we could see that the dots are below the price here as well which we may consider as another evidence of bullish pressure. 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 another evidence of bullish pressure. Also based on the Stochastic Oscillator we could see that the price has reached its extreme which we may consider as yet 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 – Based on the above mentioned analysis, my short term view was bullish here and I was expecting the price to move higher further until the strong support zone holds. The price action followed my analysis here and moved higher further delivering around 100 pips move before it was blocked by a bearish divergence. Until the strong support zone holds my view still remains bullish here.

You can see this move clearly on the M15 chart below.

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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