Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review October 28th 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)

Gold – 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 1622.46 and the second low that has formed at 1617.19 based on the MACD indicator. The price then moved higher and broke above the last high at 1645.70 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 currently moving lower has created a bullish hidden divergence that has formed between the first low that has formed at 1617.19 and the second low that has formed at 1643.98 based on the MACD indicator we may consider these as evidences of bullish pressure. Also, 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 everything looks good here for the bulls and until the two strong support zones (marked in blue) shown in the image below hold my short term view remains bullish here”.

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 a nice move to the upside until it was blocked by a bearish divergence.

EURNZD – My idea here was “Looking at the H1 chart, we could see that the price has broken above the last high at 1.73528 and has created higher highs.which is a sign of gaining momentum towards the bullish side. 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. 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%(1.72312) Fibonacci expansion level of the first wave and the 100%(1.72356) Fibonacci expansion level of the second wave. The second key support zone is formed based on the 161.8%(1.71427) Fibonacci expansion level of the first wave the 161.8%(1.71333) Fibonacci expansion level of the second wave. The price which was moving lower, has currently reached the first key support zone. 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 which was moving lower broke below the second key support zone and currently it has moved back again inside this zone. Until the second key support 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.

Litecoin – 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. In addition to this, 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, 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. So based on all this, until both these strong support zones shown in the image below(marked in green) hold my short term view remains bullish here and I expect the price to move higher further after pullbacks”.

Current Scenario – In Litecoin the price action is following the bullish expectations so far. My plan still remains the same here.

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