Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review October 14th 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)

AUDNZD – My idea here was “Looking at the H4 chart, currently it looks like a correction is happening. Also, while measuring the legs, we have two key support zones that has formed. The first key support zone is formed based on the 100%(1.12676) Fibonacci expansion level of the first wave and the 61.8%(1.12444) Fibonacci expansion level of the second wave. The second key support zone is formed based on the 161.8%(1.11666) Fibonacci expansion level of the first wave the 100%(1.11598) Fibonacci expansion level of the second wave. The price which was moving lower, has currently reached the first key support zone. Also, we have a potential bullish divergence that is forming at the moment which we may consider as evidence of bullish pressure. In addition to this, 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. So based on all this, until the key support zones hold my short term view remains bullish here. A valid breakout above the most recent downtrend line would be the validation for this bullish view”.

Current Scenario – In this pair based on the above-mentioned analysis my short term view was bullish until the key support zones hold. Also, I mentioned that “a valid breakout above the most recent downtrend line would be the validation for this bullish view”. The validation for the bullish view which is a valid breakout above the most recent downtrend line didn’t happen yet. The price has currently reached the second key support zone, until this zone holds my plan still remains the same here. If the price breaks and holds below this zone then this bullish view will be invalidated.

Dow Jones – My idea here was “Looking at the H1 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 29065.52 and the second low that has formed at 28901.02 based on the MACD indicator. The price then moved higher and broke above the last high at 29490.02 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence here as well, 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. Also, currently there are no signs opposing this bullish view. 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 Dow Jones my short term view was bullish and I was expecting the price to move higher further until the strong support zone holds. The price moved as per the plan here. The price first provided a short move to the upside then it moved lower and created a false break of the strong support zone and then it moved higher again and provided a fantastic move to the upside as you can see in the image below.

GBPNZD – My idea here was “Looking at the H4 chart, currently it looks like a correction is happening in the form of double wave down. Also, we have a key support zone that has formed based on the 61.8%(1.96071) – 100%(1.94131) Fibonacci expansion level of the first wave. The price which was moving lower, reached this key support zone, respected it and is currently bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed on 6th October 2022 and the second low that has formed on 12th October 2022 based on the histogram of the MACD indicator which we may consider as evidence of bullish pressure. So based on all this, until the key support zone holds my short term view remains bullish here. A valid breakout above the most recent downtrend line would be the validation for this bullish view”.

Current Scenario – In GBPNZD, the price action followed my analysis exactly as I expected it to. The validation for the short term bullish view which is a valid breakout above the most recent downtrend line happened as per the plan here. The price then moved higher further and delivered 400+ pips move!

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