Hi Traders! Arvinth here from Traders Academy Club team. Weekly summary and review September 30th 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)

EURGBP – My idea here was “On the H1 chart, currently, it looks like a pullback is happening with the price creating a bullish hidden divergence that has formed between the first low that has formed at 0.86905 and the second low that has formed at 0.88523 based on the MACD indicator which we may consider as evidence of bullish pressure. 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 favoring this short term bullish view. In addition to this, currently it looks like a correction is happening in the form of potential double wave to the downside. Also, while measuring the first wave of this correction we have two key support zones that has formed. The first key support zone is formed by the 61.8%(0.87732) Fibonacci expansion level of the first wave and the second key support zone is formed by the 100%(0.86112) Fibonacci expansion level of the first wave. Until these two key support zones (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”.

Current Scenario – In this pair my short term view was bullish and I was expecting the price to move higher further until the key support zones hold. The price action followed my analysis exactly as I expected it to here. The price respected the first key support zone and then it moved higher from this zone delivering 210+ pips move before the price moved lower.

GBPAUD – My idea here was “On the H1 chart, we have a bearish divergence that has formed supporting the H4 bearish hidden divergence, between the first high that has formed at 1.67794 and the second high that has formed at 1.68875 based on the MACD indicator which we may consider as evidence of bearish pressure. Also, the price which is moving lower has broken below the most recent uptrend line which we may consider as another evidence of bearish pressure. In addition to this, based on the Parabolic Sar we could see that the dot is above the price which we may consider as yet another evidence of bearish pressure. Until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here and I expect the price to move lower further”.

(Note: You can learn about a Killer Forex Strategy “Double Trend Line Principle” here)

Current Scenario – Based on the above-mentioned analysis my short term view was bearish here and I was expecting the price to move lower further until the strong resistance zone holds. The price action didn’t follow my analysis here and this idea failed as the price moved higher and broke above the strong resistance zone and is holding above it, thus invalidating this short term bearish view. My current view on this pair is neutral.

CHFJPY – 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 150.713 and the second high that has formed at 151.455 based on the MACD indicator. The price then moved lower and broke below the last low at 147.931 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 151.455 and the second high that has formed at 147.847 based on the MACD indicator which we may consider as another evidence of bearish 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 bearish pressure. Until the strong resistance zone (marked in red) shown in the image below holds my short term view remains bearish here. If we get a valid breakout below the most recent uptrend line, we may then consider it as a validation for this short term bearish view”.

Current Scenario – In this pair, the validation for the bearish view which is a valid breakout below the most recent uptrend line didn’t happen yet. My plan still remains the same here.

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