Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review September 2nd 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)

NZDCHF – My idea here was “On the H1 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. 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. Until the key support zone shown in the image below (marked in green) holds my short term view remains bullish here and I expect the price to move higher further after pullbacks”.

Current Scenario – In NZDCHF after the bullish trend pattern I was looking for pullbacks and then further continuation higher. The pullback that I was looking for happened and then the price provided a short move to the upside. We then had a deeper pullback and then the price which is moving higher has provided a nice move to the upside so far.

GBPCAD – My idea here was “On the H1 chart, the price which is moving lower has created multiple false breaks which we may consider as evidence of bullish pressure. In addition to this, we have a bullish divergence that has formed between the first low that has formed at 1.52268 and the second low that has formed at 1.52094 based on the MACD indicator. The price then moved higher and broke above the last high at 1.52806 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. Until the key support zone shown in the image below (marked in blue) holds my short term view remains bullish here. A valid breakout above the high at 1.52860 would be the validation for this bullish view”.

Current Scenario – The price action didn’t follow my analysis here and this idea failed. The validation for the bullish view which is a valid breakout above the high at 1.52860 happened but then the price moved lower and has currently broken below the key support zone and is holding below it. Thus invalidating this short term bullish view, my current view on GBPCAD is neutral.

EURJPY – My idea here was “On the H1 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 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. Until both these strong support zones shown in the image below(marked in green) holds my view remains bullish here and I expect the price to move higher further”.

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. After the bullish trend pattern the price didn’t provide the deeper pullback that I was looking for and it continued the rally after smaller pullback and has delivered 180+ pips move so far.
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