Weekly Summary And Review November 4th 2022

Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review November 4th 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)

GBPCAD – My idea here was “On the H1 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 1.57867 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 1.56451 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 GBPCAD my short term view was bearish and I was expecting the price to move lower further after pullbacks until the strong resistance zone holds. The price action followed my analysis exactly as I expected it to here, after the bearish convergence we had a pullback and then the price moved lower further delivering 520+ pips move so far!

 

 

 

AUDCAD – My idea here was “On the H4 chart, we could see that 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. Also, 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 another 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 is currently moving lower has created a bullish hidden divergence that has formed between the first low that has formed at 0.86203 and the second low that has formed at 0.86958 based on the MACD indicator we may consider this as yet another evidence of bullish pressure. So based on all this, until both the two strong support zones shown in the image below(marked in blue) hold my short term view remains bullish here and I expect the price to move higher further”.

 

 

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 two strong support zones hold. The price action followed my analysis exactly as I expected it to here. The price which was moving lower reached the first strong support zone, respected it and bounced higher from this zone, delivering 80+ pips move. The price then moved lower, reached the second strong support zone, respected it and the price which is currently bouncing higher from this zone has delivered 100+ pips move.

 

 

 

Dax – My idea here was “On the H1 chart, we have a bearish divergence that has formed between the first high that has formed at 13354.50 and the second high that has formed at 13445.30 based on the MACD indicator. The price then moved lower and broke below the last low at 13215.30 thus forming a classical setup of bearish divergence followed by bearish convergence, we may consider this as evidence of bearish pressure. As per the book scenario after a bearish convergence we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. In addition to this, the price has also broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. Until the key 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 – The price action followed my analysis and delivered the first move down, as expected. The price was then blocked by bullish divergence and no new opportunities to trade the Dax since then. So, we are back to neutral at the moment.

 

 

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