Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review September 23rd 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)

GBPJPY – My idea here was “On the H1 chart, the price which is moving lower has created a bearish trend pattern in the form of three lower highs, lower lows which we may consider as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently it looks like a correction is happening. Also, we had two strong support zones that has formed and the price which was moving lower has broken below these zones and is holding below them, we may consider this as yet another evidence of bearish pressure. Currently, these strong support zones are acting as strong resistance zones for us. Until these two strong resistance zones (marked in red) shown in the image below hold my short term view remains bearish here and I expect the price to move lower further”.

Current Scenario – In GBPJPY I was expecting the price to move lower further in the short term until the two strong resistance zones hold. The price action followed my analysis exactly as I expected it to here. After the bearish trend pattern, the price which was moving higher reached the first strong resistance zone, respected it and then it bounced lower from this zone, delivering 840+ pips move to the downside so far!

EURAUD – My idea here was “On the daily chart using the False break and convergence indicator we could see that the price which was moving lower has created two false breaks which is a sign of slow down. In addition to this, the price which was moving lower has created a bullish divergence between the first low that has formed at 1.43934 and the second low that has formed at 1.42841 based on the MACD indicator The price then moved higher and broke above the last high at 1.47071 creating higher highs thus creating a full bullish convergence. You can see these false breaks and full convergence indicated by the FBC indicator. We may consider these as evidences favoring the bulls”.

Note: You can get the False Break And Convergence Indicator Here

Now based on the Key Trading Levels indicator we could see that the price which was moving lower was blocked by a daily support zone. The price respected this zone and moved higher from it. Now combining both the KTL and FBC indicators together we can see that the market has provided various facts supporting the bullish view. The price which was moving lower reached a strong support zone and it respected it. In addition to it, around this area we had two false breaks followed by a bullish convergence. Then you can see in the image below how the price moved higher further after that and has currently reached the next strong resistance zone (Weekly + Daily) based on the KTL indicator. If the price breaks and holds above this resistance zone we may then expect the price to continue higher further.

Note: You can get the Key Trading Levels Indicator Here

Current Scenario – Based on the above mentioned analysis my view was bullish here and I mentioned that “If the price breaks and holds above this resistance zone we may then expect the price to continue higher further”. My plan still remains the same here.

AUDCHF – My idea here was “Looking at the H1 chart, we could see that the the price which was moving lower has created a bullish divergence that has formed between the first low that has formed at 0.64598 and the second low that has formed at 0.63404 based on the MACD indicator which we may consider as evidence of bullish pressure. Also, the price which is moving higher has broken the last high at 0.64507 and has created higher highs based on the MACD indicator which is a sign of gaining momentum towards the bullish side. Also, 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, 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. So everything looks good here for the bulls. Until the key support zone (marked in blue) shown in the image below holds my short term view remains bullish here and I expect the price to move higher further after pullbacks”.

Current Scenario – My plan didn’t change here that is “until the key support zone holds my short term view remains bullish here and I expect the price to move higher further after pullbacks”.

Note: You can follow us here on Trading View and also on our blog to get similar ideas on daily basis)

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