Hi Traders! Weekly summary and review October 15th, 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 this week and how it has currently developed now.
Trading Ideas (Blog Posts)
AUDCAD – My idea here was “On the H4 chart, we have a key support zone that has formed based on the 161.8% Fibonacci expansion level of the first wave and the 61.8% Fibonacci expansion level of the second wave. The price which was moving lower, reached this zone, respected it and is bouncing higher from this zone. In addition to this, we have a bullish divergence that has formed between the first low that has formed at 0.91708 and the second low that has formed at 0.91033 based on the MACD indicator, we may consider this as evidence of bullish pressure. Also, 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 another evidence of bullish pressure. In addition to this, based on the Parabolic Sar the dots are below the price here as well, which we may consider as yet another evidence of bullish pressure. Until the key support zone holds my view remains bullish here. If we get a valid breakout above the high at 0.92097 we may then consider it as a validation for the bullish view and may expect the price to move higher further”.
Current Scenario – The validation for the bullish view which is a valid breakout above the high at 0.92097 didn’t happen yet. If we get a valid breakout above the high at 0.92097 we may then consider it as a validation for the bullish view and may expect the price to move higher further.
EURJPY – My idea here was “On the H4 chart, based on the Heikin Ashi candles we can see that currently, we have strong bullish bodies in upward moving market conditions so it basically reflects a bullish environment. Also, the price which was moving higher has broken above the last high at 129.495 thus creating higher highs 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. We also had two strong resistance zones that has formed and the price which was moving higher has broken above these zones and is holding above them. After the breakout these strong resistance zones are acting as two strong support zones for us. Until both these strong support zones shown in the image below hold my view remains bullish here and I expect the price to move higher further after pullbacks”.
Current Scenario – Based on the above-mentioned analysis my view was bullish here and I was expecting the price to move higher further after pullbacks. The deeper pullback that we wanted never happened however smaller pullback did happen on the M15 chart. If you followed this idea, you should be in good profits by now.
You can see this move clearly on the M15 chart below.
Dollar Index – My idea here was “On the H4 chart too we have a bearish divergence that has formed between the first high that has formed at 94.493 and the second high that has formed at 94.535 based on the MACD indicator which we may consider as evidence of bearish pressure. In addition to this, the ADX indicator gave a bearish signal here 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 invalidation level shown in the image below holds my view remains bearish here. If we get a valid breakout below the low at 93.650 we may then consider it as a validation for the bearish view and may expect the price to move lower further”.
Current Scenario – My plan still remains the same here that is “until the invalidation level holds my view remains bearish and if we get a valid breakout below the low at 93.650 we may then consider it as a validation for the bearish view and may expect the price to move lower further”.
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To your success,
Vladimir Ribakov
Certified Financial Technician
