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

NZDJPY – My idea here was “On the H1 chart, the price has created clear waves of bearish trend pattern in the form of three lower highs, lower lows structure. We may consider this as a sign indicating that the price is gaining momentum towards the bearish side. Generally, after a bearish trend pattern, we may expect pullbacks and then further continuation lower. Currently it looks like a pullback is happening. In addition to this, we had two strong support zones that has formed and the price which was moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these 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”.

Current Scenario – In NZDJPY my short term view was bearish and I was expecting the price to move lower further until the two strong resistance zones hold. The price respected  the first strong resistance zone, moved lower and delivered 100+ pips move to the downside before it moved higher again. Currently, the price reached the second strong resistance zone, respected it and is bouncing lower. Until the second strong resistance zone holds my bearish view still remains the same here. Alternatively if we get a valid breakout above the second strong resistance zone then this bearish view will be invalidated.

Dollar Index – My idea here was “On the H1 chart, based on the Heikin Ashi candles we can see that currently, we have strong bearish bodies here as well in downward moving market conditions so it basically reflects a bearish environment. 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. Currently it looks like a correction is happening. Also, we had two strong support zones that has formed, the price moved lower broke below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these 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”.

Current Scenario – In Dollar index, the price action is following the bearish expectations so far. My plan still remains the same here.

EURCHF – My idea here was “On the H4 chart, we have a bearish divergence that has formed (supporting the weekly bearish hidden divergence), between the first high that has formed at 0.98002 and the second high that has formed at 0.99547 based on the MACD indicator which we may consider as evidence of bearish pressure. The price then moved lower and broke below the last low at 0.98287 thus creating lower lows which we may consider as another evidence of bearish pressure. Currently it looks like a correction is happening and, based on the Stochastic Oscillator we could see that the price has reached its extreme, 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”.

Current Scenario – My plan didn’t change in EURCHF, that is until the strong resistance zone holds my short term view is bearish and I was expect the price to move lower further.

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