Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review October 21st 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)

USDCHF – My idea here was “On the H4 chart, we could see that the price which was moving higher has created a bearish divergence between the first high that has formed at 1.00203 and the second high that has formed at 1.00737 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. So everything looks good here for the bears. Until the key resistance zone (marked in red) shown in the image below holds my short term view remains bearish here. A valid breakout below the most recent uptrend line would be the validation for this bearish view”.

Current Scenario – In this pair, based on my analysis, I mentioned that until the key resistance zone holds my short term view is bearish. Also, I mentioned that “a valid breakout below the most recent uptrend line would be the validation for this bearish view”. The validation for the short term bearish view which is a valid breakout below the most recent uptrend line didn’t happen here. Alternatively, the price moved higher and has broken above the key resistance zone, thus invalidating this short term bearish view. My current view on this pair is neutral.

GBPCHF – My idea here was “On the H4 chart, the price which was moving higher has reached a key resistance zone that has formed based on the 161.8%(1.14275) Fibonacci expansion level of the first wave and the 61.8%(1.14338) Fibonacci expansion level of the second wave. Also, we have a bearish divergence that has formed supporting the daily bearish hidden divergence, between the first high that has formed at 1.12858 and the second high that has formed at 1.13959 based on the MACD indicator which we may consider as evidence of bearish pressure. So everything looks good here for the bears. Until the key resistance zone (marked in red) shown in the image below holds my short term view remains bearish here. A valid breakout below the most recent uptrend line would be the validation for this bearish view”.

Current Scenario – In this pair, the price action followed my analysis exactly as I expected it to. The validation for the short term bearish view which is a valid breakout below the most recent uptrend line happened as per the plan. We then had a pullback and then the price which is moving lower has delivered 120+ pips move so far!

You can see this move clearly on the H1 chart below.

Oil – My idea here was “On the H4 chart, the price which was 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. 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. 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 holds my short term view remains bullish here and I expect the price to move higher further”.

Current Scenario – In Oil my short term view was bullish and I was expecting the price to move higher further until the key support zones hold. My plan still remains the same here.

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