Hi Traders! Weekly Trades Summary October 9th 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.
First, we will see the trade ideas that I shared in my blog:
Ripple – My idea here was “Looking at the H4 chart we could see that the price which is moving higher has broken above the most recent downtrend line and is holding above it, which we may consider as evidence of bullish pressure. In addition to this the ADX indicator gave a bullish signal 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. Currently, there are no contradictory signs in play, so based on all this, my view is bullish here and I expect the price to continue higher further. If the price moves lower and if we get a valid breakout below the most recent uptrend line (marked in green) then this bullish view will be invalidated”.
Current Scenario – Based on the above-mentioned analysis my view was bullish here and I expected the price to move higher further until the uptrend line holds. We got the pullback, the uptrend line was holding and then the price is currently moving higher exactly as I expected it. My view still remains bullish here.
You can see this move clearly on the H1 chart below:
USDCAD – My idea here was “On the H4 chart the price which was moving higher has created a bullish trend pattern that had completed itself, we may consider this as 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. We also had a strong resistance zone that had formed which the price has broken above and currently, this strong resistance zone is acting as a strong support zone for us. We also have a bullish divergence that has formed between the first low that has formed on 1st October 2020 and the second low that has formed on 6th October 2020 based on the MACDindicator and CCI indicator. So until the key support zone (marked in red) holds my view remains bullish here and I expect the price to move higher further”.
Current Scenario – The price action didn’t follow my analysis here and this idea failed as the price has broken below the key support zone and is holding below it.
CHFJPY – My idea here was “On the H4 chart, the price which was moving lower has created a bearish trend pattern in the form of three lower highs, lower lows. 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. The price which is moving higher has reached a key resistance zone formed by the 50%(115.564) – 61.8%(116.106) fibonacci retracement zones of the bearish trend pattern. We also have the daily downtrend line and the 200 moving averages coinciding in the same area. In addition to this we have a bearish divergence that has formed between the first high that has formed on 29th September 2020 and the second high that has formed on 7th October 2020 based on the MACD indicator. Also, the volumes are dropping based on the Volumes indicator, and based on the 200 moving averages the slope is bearish, we may consider these as evidences of bearish pressure. So until the key resistance zone shown in the screenshot below (marked in blue) holds my view remains bearish here and I expect the price to continue lower further”.
AUDCAD – My idea here was as follows:
Current Scenario – On the H4 chart the short-term bearish move that I was looking for happened but then the price which was moving lower was blocked by a bullish divergence based on the MACD indicator and is currently moving higher. My current view on this pair is neutral. You can see this move and the bullish divergence clearly on the screenshot below:
NZDUSD – My idea here was as follows:
Current Scenario – After the uptrend line breakout, on the H1 chart the price moved lower exactly as I expected it to and created another low. We then had a bullish divergence based on the MACD indicator and the price is currently retracing higher. My current view on this pair is neutral. You can see this move and the bullish divergence clearly on the H1 chart below:
NZDCHF – My idea here was as follows:
Current Scenario – The price action is following my analysis so far. We got the pullbacks and then the price is currently moving higher exactly as I expected it to. My bullish view still remains the same here.
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To your success,
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