Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review November 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.

Trading Ideas (Blog Posts)

Ethereum – My idea here was “On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies in downward moving market conditions so it basically reflects a bearish environment. Also, the price which was moving lower has created lower lows based on the MACD indicator which is a sign of gaining momentum towards the bearish side. In addition to this, 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. Also, 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. So based on all this, until the two strong resistance zones (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – In Ethereum, the bearish move happened as per the plan. After the bearish trend pattern, the pullback that I was looking for happened and the price which was moving higher reached the second strong support zone. The price respected this zone and bounced lower from it, delivering an amazing move to the downside!

EURNZD – My idea here was “Looking at the H4 chart, we could see that the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 1.68510 and the second low that has formed at 1.67347 based on the MACD indicator. The price then moved higher and broke above the last high at 1.69677 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence, we may consider these as evidences of bullish pressure. 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 shown in the image below (marked in blue) holds my short term view remains bullish here and I expect the price to move higher further”.

Current Scenario – In EURNZD, after the bullish convergence the short term bullish move happened as per the plan and the price delivered 150+ pips move to the upside. We then had a pullback and then the price which is currently moving higher again has delivered 150+ pips move so far!

NZDCHF – My idea here was “On the H4 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 0.58680 and the second high that has formed at 1.58131 based on the MACD indicator. The price then moved lower and broke below the last low at 0.59028 creating lower lows, thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider these as evidences of bearish pressure. Generally, after a bearish convergence we may look for 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. Until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further after pullbacks”.

Current Scenario – In NZDCHF, I was looking for short term bearish moves to happen after pullbacks. The pullback that I was looking for happened and the price moved lower as I expected it to and has delivered 100+ pips move so far.

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

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