Weekly Summary And Review October 1st 2021

Hi Traders! Weekly summary and review October 1st, 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)

GBPCHF – My idea here was “On the H4 chart, the price which was moving higher has created a bearish divergence between the first high that has formed at 1.27964 and the second high that has formed at 1.28184 based on the MACD indicator. The price then moved lower and broke below the last low at 1.26595 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. Currently, it looks like a correction is happening and in addition to this, the price has created a bearish hidden divergence that has formed between the first high that has formed at 1.28184 and the second high that has formed at 1.27063 based on the MACD indicator which we may consider as yet another evidence of bearish pressure. Until the two strong resistance zones hold my short-term view remains bearish here and I expect the price to move lower further”.
Current Scenario – The price action followed my analysis exactly as I expected it to here. The price which was moving higher reached the first strong resistance zone, respected it, and moved lower from this zone. The price then moved lower further as I expected it to and delivered 140+ pips move.

You can find a detailed explanation regarding this here: GBPCHF Short Term Forecast Update And Follow Up
You can see this move clearly on the H1 chart below.

 

CADJPY – 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 is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, we may consider this as 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, also we 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”.
Current Scenario – In this pair, the price moved higher as I expected it to and delivered around 70 pips move until it was blocked by a bearish divergence. Currently, the price is holding in the first strong support zone, until both the strong support zones shown in the image below holds my view still remains bullish here.

 

Ethereum – My idea here was “On the H1 chart, we have a key support zone that has formed based on the 100%(2726.95) Fibonacci expansion level of the first wave, the 61.8%(2715.28) Fibonacci expansion level of the second wave, and the bottom of the range. The price which was moving lower respected this key support zone and is bouncing higher from this zone. Also, we have a bullish divergence that has formed between the first low that has formed at 2786.63 and the second low that has formed at 2780.33 based on the MACD indicator. Then the price moved higher and broke above the last high at 2946.35 creating higher highs, thus forming a classical setup of bullish divergence followed by bullish convergence. 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. Also, the price which is moving higher has broken above the most recent downtrend line which we may consider as another evidence of bullish pressure. So based on all this, my short-term view remains bullish here and I expect the price to move higher further after pullbacks”.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. After the bullish convergence, the pullback that I was looking for happened, and then the price moved higher further and provided a fantastic move to the upside!
Note: You can follow me here on Trading View and also on my blog to get similar ideas on daily basis)

 

To your success,

Vladimir Ribakov
Certified Financial Technician

 

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