Hi Traders! Weekly Trades Summary August 7th 2020 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 in this week and how it has currently developed now.
Note: As you know, we always summarized the performance of the systems. But now, for the next few weeks, we are busy with migrating our technology to new servers and update the technical tools we use, so until we solve it, we can’t upload images of the systems.
Meanwhile, to keep the pace and the value for our followers, I decided to do weekly summaries of the blog posts, the trading view posts, and to show how well they worked, or not, what validates our setups and what invalidates them, and to help my followers to understand better my trading techniques and how I implement them
I hope you find it useful and helpful and would appreciate your feedback below, in the comments section.
First, we will see the trade ideas that I shared in my blog:
AUDCHF – My idea here was “On the H4 chart, the price which is moving lower had created a bearish trend pattern in the form of three lower highs, lower lows, which has completed itself, we may consider this as evidence of bearish pressure. Generally, after a bearish trend pattern, we may expect corrections and then further continuation lower. Currently, it looks like the correction that we are looking for is happening. Once this correction completes itself, we may then expect the price to continue lower further”.
Current Scenario – On the H4 chart the price action didn’t follow my analysis. Based on the above-mentioned analysis, after a bearish trend pattern, I was looking for corrections and then further continuation lower. Generally we may expect a correction in the form of an ABCD pattern or a consolidation. Currently the price has created a bullish trend pattern which is a contradictory sign so due to this my current view on this pair is neutral.
GBPJPY – My idea here was as follows “On the H1 chart, the price which is moving higher has created a bullish trend pattern in the form of three higher highs, higher lows, which we may consider as evidence of bullish pressure. Generally, after a bullish trend pattern we may expect a correction to happen and then further continuation higher. Currently, it looks like the correction that we were looking for happened in the form of consolidation and the price has broken above this consolidation. We may consider this as yet another evidence of bullish pressure. So based on all this, my view is bullish here and I expect the price to continue higher further”.
Current Scenario – On the H1 chart after the bullish trend pattern we had a correction in the form of a consolidation. After the breakout of this consolidation I expected the price to continue higher further. The price after breaking above the consolidation retested the breakout and then it moved higher further delivering 80+ pips move until it was blocked by a bearish divergence.
NZDUSD – My idea here was “On the H4 chart, we had a false break with the bearish divergence that has formed between the first high that has formed at 0.66907 and the second high that has formed at 0.67148 based on the MACD indicator. The price then moved lower and broke below the last low at 0.66193 thus creating a bearish convergence for us. Generally, after a bearish convergence, we may expect pullbacks and then further continuation lower. Currently, it looks like the pullback that we are looking for is happening. In addition to this, the price has also broken below an uptrend line and retested the breakout, we may consider these as evidences of bearish pressure. Also, we have a bearish hidden divergence that has formed between the first high that has formed at 0.67148, and the second high that has formed at 0.66727 based on the histogram of the MACD indicator which we may consider as another evidence of bearish pressure. So based on all this, my short term view is bearish here and I expect the price to continue lower further”.
Current Scenario – On the H4 chart after the bearish convergence we had a deeper correction and then the price is currently moving lower as I expected it to, delivering 80+ pips move so far (you can see this move clearly on the H1 chart).
NZDUSD H1(1 Hour) Chart
Oil – My idea here was as follows:
D1 – Price reached a keyformed by the 161.8% (38.16) level of the first wave and the 61.8% (45.28) level of the second wave. divergence.
Expecting corrections to happen now.
H4 –pattern followed by a double wave correction.
Expecting the price to continue lower further.
Current Scenario – The price action didn’t follow my plan here and this idea failed. Because after the bearish trend pattern we had a double wave correction and I was expecting the price to continue lower further. But the price moved higher and created one more high thus forming a bullish trend pattern. So based on this my current view is neutral here.
GBPUSD – My idea here was as follows:
D1 – Price broke above the first keyformed by the 61.8% (1.28281) level of the big wave and the 100% (1.29986) level of the small wave and is holding above it.
Price still has room higher towards the next keyformed by the 100% (1.32888) level of the big wave and the 161.8% (1.34490) level of the small wave.
There are no evidences that show the current trend is over yet.
H1 – Double wave down with.
Price has broken above the most recent downtrend line.
Expecting further continuation higher.
Current Scenario – On the H1 chart after the most recent downtrend line breakout, the price moved higher as I expected it to and delivered around 80 pips move until it was blocked by a bearish divergence.
EURJPY – My idea here was as follows:
D1 – Price has reached a keyformed by the 61.8% (125.475) level of the first wave and the 125 psychological area. divergence.
H4 – Price is currently moving inside apattern. divergence.
Expecting further continuation lower after a valid breakout below thispattern.
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To your success,
Certified Financial Technician