Weekly Performance Summary - October 18th 2019 by Yordan

Hello everyone, how are you doing guys? My name is Jordan and it's time for us to go ahead and summarize what happened during this past week. The trades we were looking to trade, the setups, all the developments and follow-ups. Um, if you're not part of our trading community, I Invite you to go ahead and check out what we're offering. I'm pretty sure you're going to love it. So without further ado, guys, let's go ahead and start working. Pardon me. Now, um, we're going to cover the report, of course, as usual. And for those of you who are watching this kind of video for the very first time, Let me quickly go over this report and show you what it's all about. Now on the very top you have how-to-use kind of video that will get you on track pretty quickly. Then below you have plenty of educational materials. Of course, this is just the most important things. We have huge library of educational videos and webinars. But those are absolutely mandatory for you to understand what we do. Below we have the watchlist, which is basically where the action takes place. And of course, then we have the comments. So this is how it looks. And now let's go over this report, guys. First one is Aussie franc. Aussie franc worked out. Fantastic. We are working. Let me just open here the drawing tool. We are working with the weekly cycle in this specific case, and ever since we got the confirmation for bullish retracement, at least we started looking for the buys on the daily chart. What we're expecting at that moment is at least. A double wave cycle to be completed, which means we still have plenty of room to the upside. And that gives us the opportunity to trade this second leg. When we go to the 4-hour chart, we can see here the corrective cycle with this trendline breakout. And once we got the breakout, we started looking for the buys once again. So it was pretty much perfect setup because whether you trade it from here or from here, it more or less managed to provide some bullish moves. Of course, it at that stage it remains bullish, and this is pretty much how it looks at the moment. So if we can drop here a fibo. You'll see the possible levels that we're referring to. Definitely, this zone is to be respected by us, right? We don't know how the market is going to react around it, but we need to be prepared here for some sort of reversal or bounces, reactions, and so on. It's pretty strong resistance level. Which is exactly in between the two fields, 61.8 and the 100. Excuse me. So once again, even if we're looking at the 100 or the 61.8, it doesn't matter because we still have plenty of room. That means Aussie franc remains bullish in the mid-long term. All right, that's about the first one. Aussie Kiwi is the next opportunity we've been talking about. This is the daily cycle bullish structure developed, corrective later on followed right here. Multiple levels and support levels and places for us to look for the entries. Ideal zones, of course. Bullish hidden divergence putting bullish pressure. Of course, the ABCD pattern. And then we got this on the 4-hour chart. This is what we had, okay? This is basically the big one. This is on H4 where we got, uh, the bullish divergence, then the breakout. And for me personally, that was ideal because we got that convergence idea, which is the reversal pattern even before the trendline breakout. It happens rarely, usually when the trendline doesn't have a very steep angle. This is— it is accepted— not acceptable, but it happens, right, in those situations. So ever since that bullish, bullish, bullish, we got plenty of pullbacks here. And by, by saying pullbacks, I mean opportunities to go ahead and join. And as you can see, during the week, um, we had here those pushes. Now on the last part, you'll notice that we got the bearish divergence and we got the false break, which means when this bearish divergence is completed, it is definitely time for you to manage that position. Now I'm not saying this is the only way. There will be people who just enter the trade at some level based on some entry, put the stop loss, and then let it work. That is also fine. But me, as I would say expert in divergences and trading divergences on daily basis, I strongly rely on them, which means when I see this kind of moves, I know that at least a pullback is due. And that's why I prefer to cash out or move the stop loss to breakeven, protect my capital, and so on and so on. Of course, it's just a way of managing the trade. My suggestion is to stick to whatever works for you and, um, gives you best profits, right? This is the bottom line to make money here. Euro franc cycle divergence reversal pattern pullback holding the low means we're looking for bullish continuations, and this one managed to pay very, very nice. Now the question is where to, and here I need to definitely go back to the live chart to show you a few things. Now we can see that the price is moving into some sort of range here, channel. Just need to adjust it here because MT4 is amazing. All right. Close enough. Uh, so looking at the bigger picture, of course, definitely we can go ahead and do something like that, right? Respecting this channel, moving towards the top, and then continuation lower. In my opinion though, we need to go ahead and check out what's happening on the lower time frames to give us an idea whether this is a possible scenario or is more likely To push in the opposite direction. Now, first of all, we know that we're in a bearish trend, and we know that we're looking for corrective pattern. That corrective pattern was delivered. This is one two three four or ABC or ABCD. Call it as you wish. The name doesn't matter. Corrective structure. End of story. Bottom line. That corrective structure started forming. Bearish pressure, not on RSI, not on MAs, but on histogram. And when we're dealing with corrections, this is more than enough. So bearish pressure from divergences plus completed structure, and we reached the 100%. We have also reached on the lower time frames this move here, and now we got the spike completing one leg divergence. All that means there is a very good chance we're going to continue lower, and in order to do so, we need to confirm that breakout. The breakout I'm referring to is right here. Basically, we need to see a reversal pattern or impulsive move to the downside before we can start selling. The trend line that we have in this case from the ABCD is very far away, so not really usable. The next available trend line on the second leg is right here. So if we're going to get convergence, um, that level must be broken. And since we don't have a clear low here, but we have a zone which starts to remind a possible range for further continuation onwards, I would play careful. That means I want to see a real, real breakout below this entire zone. And if you want to be even extra careful, wait for impulsive move, guys. Multi-phase or triple cycle or special cycle, the name really doesn't matter. We need to see momentum. If that momentum is there, it's fine. But I wouldn't rely on the convergence here because it could be tricky. Okay, that could easily turn into something like that— breakout and then continuation. Remember that signs against doesn't mean a reversal. Before we get the reversal, there should be a fact telling us, okay, now we have a reversal pattern. Then only and only then we can look for the sells. Until that happens, we are officially in a bullish trend. Price is creating higher highs, higher lows. All right, so divergence or no divergence, sells or no sells, we are technically in a bullish trend. So basically, we're currently at this critical resistance zone, and we need to see whether we're going to get breakouts or reversals. Okay, so keep in mind we have 2, maybe even 3 scenarios. 2 bullish scenarios, one like this, one like that. And the next scenario would be The breakouts for the continuations. This is how we can summarize it for euro franc, covering all possible ideas here. Next is euro pound, where the news really helped us. And what we're looking for here is first of all this big thing which could be seen in two. Ways. One of them is horizontal range, the other one is with the trend line. Of course, first of all, we're going to focus on the trend line right here, and basically we're expecting these corrective cycles to happen. Then on the daily chart, we got the push lower, break below the trend line with the Brexit announcements lately. And in other words, we're looking for this thing to continue lower And that's the final target. So far paying good for those who are trading it. Volatility is in place. In such volatile situations, it's best to drop to the lower time frames because the price is not going to give you pullbacks from the 4-hour chart or pullbacks on the daily chart, maybe not even on the 1-hour chart, guys. Okay, H1 and M15. This is where the game is happening very, very, very fast. If this is out of your comfort zone, no problem, skip it. But when things are moving with such dramatic pace, you cannot expect it to, to happen on H4 or daily. So pullbacks and sells, pullbacks and sells— this is what we are preaching at the moment. This is what we are looking for up to this zone. Once we get there, we want to see whether we're going to form possible bounces or the momentum will remain. Keep in mind that here currently we are very sensitive fundamentally, so technicals of course go to position number 2, and we need to follow up what's going to happen. It's already the 18th. Deadline is approaching. It will be very interesting end of the month. Stay tuned. Live chart, nothing really to show here. That's why I'm moving on. Euro Kiwi is also another super interesting example. For the euro pairs, providing plenty of opportunities for us to trade. Now, starting from the weekly chart, we can see three waves: three higher highs, three higher lows, and corrective structure breakout. And then we are looking for possible bullish continuation. However, this is weekly. Okay, and we're approaching critical levels. Actually, we have approached already the first one, and now the question is whether we're going to continue like that or we're going to bounce. Based on weekly, we're supposed to continue higher. On daily chart, the very first target based on this measurement of the Fibonacci, and then we have this one was already reached, and we have the next one which is the 100% duplication. Looking at the 4-hour chart, we had here amazing bullish opportunity with this breakout, and now, uh, the price started pushing lower. Bottom line, we got there the target to the level. If we go back to the live chart, and that was covered, uh, in the LTR as well, we can see that this level right here, guys, was the meeting point of multiple levels based on different ideas such as Fibonacci, um, alternative trend lines, regular trend lines, and so on and so on and so on. And that was the meeting point of All of them, that zone right here. And as you can see, that spike was drawn to this level like magnet and then immediate push lower. So now the question is once again whether we're going to bounce from here, probably trade inside this channel or maybe continuation lower, or we're going to simply continue higher. And since on the lower time frames we cannot say anything yet. We remain bullish or neutral. Why do we do that? Because on daily chart we can see a lot of bearish pressure, and on the same time that could be read as some sort of diagonal here, right? Triangle. Lower volumes, lower momentum. That's the bottom line. So buying now once again would be a bit riskier, but if we talk about it technically, there is really nothing against at the moment, not on the 4-hour chart. In fact, we do have bullish hidden divergence, which means We have level, we have horizontal level, we have divergence, we are in a bullish momentum. So looking at the next bullish idea could mean a lot. The problem here is that this level, the very top level, this resistance is right above us. So if we can find on the lower time frame something that makes sense in terms of risk-reward ratio Versus this level, it could be definitely tradable. All right, so we got the zone. Technically speaking, nothing is yet confirming the reversals on H4. Dropping down to the 1-hour chart, we see completely opposite scenario: bearish momentum, bearish momentum here as well. If we look at the H1, we can definitely say, okay, possible bearish continuation. But of course, that would be too aggressive for us to look because we are working with the higher timeframes. So I would stick with the higher timeframes only in that case. In other words, we need to see next week or maybe today, I don't know, but we need to wait to figure out our next move. To be on the safe side, euro dollar, euro dollar. After this bullish structure that we're going to see later on the four-hour chart, it managed to push above the previous high after this bullish divergence, meaning that now we have. A reversal pattern, and after pullbacks we're supposed to get continuation upwards. This is what I'm referring to. This is the four-hour chart. This is the impulse, and boom! There you go. That's the breakout zone. So pullbacks and buys is what we're supposed to do. Clearly, we have momentum. So let's see. If those pullbacks will be delivered next week and we can start looking for the possible buys. Multiple levels on the way to watch out for. The first one would be approximately here, which is 61.8. Then we have one zone right here which is in between 38.50. And this is how we can go ahead and create a few levels on the way based on different things. So first of all, I'm using pure horizontal levels based on price action, then I'm using Fibonacci levels, then I'm using trendlines if available, like in this case we have one here also. And then when you have a few levels meeting at the same point, that becomes a very strong zone for us to look for the possible attacks. All right, so that's about the EUR/USD, expecting pullbacks and then continuation. If you are looking to trade the pullbacks, um, you can be first of all attacking aggressively at the very top, which is recommended only for advanced traders. If you want to be a bit more conservative You let the first leg develop, then pullbacks, and you trade the second leg before that, right? So this is where you want to be trading if you want to be more conservative. Or if you want to stick entirely to the buys, that's also perfectly fine. Just wait for the bullish setups to, to be delivered. Pound Kiwi. Bullish. The news of course helped a lot. Breakout and we're continuing here. This is the cycle that we're currently working with: bullish structure, pullback, breakout above, and we're expecting continuations. The first target here was reached. We're looking now at the second target. Uh, this divergence has the possibility to be broken, which means momentum is very strong Pullbacks and buys, pullbacks and buys. This is what we are looking for. Perfect example on the four-hour chart: breakout and continuation. Next, dollar yen horizontal range. It could be seen also like that. Multiple levels, but all of them are suggesting continuation up. This is the cycle double bottom here and pushing upwards. So weekly chart definitely bullish. Daily chart we already got double wave reaching the 61.8, so that would be the first target which was reached. Bullish hidden divergence formed, and now. We have possible bearish divergence. However, just because this is happening once again, science against doesn't mean a reversal, guys. It only means possible pullbacks or reversals. Okay, so if you're holding your buys yet, my suggestion would be that we are now near very good levels, and that could be a good time to start looking to cash out your positions. If you want to pinpoint precise levels, that spike looks very attractive. Then draw the Fibos and see where the Fibo takes you. Again, just a few pips higher. So that's basically the zone. On the 4-hour chart, we had the first false break with the divergence already. So I do see 2 possibilities here, either one more push higher For another, another high, possible another divergence and false break, and then the deeper pullbacks. Or that push could start from this zone, and later on we are likely going to continue higher. That's why if we're expecting pullbacks, it is advisable for us to go ahead and cash out these positions. Pound Kiwi, we covered gold. Gold remains under bearish pressure inside this channel, which we can see better on the 4-hour chart. And we reach the top bearish pressure here, looking for sells. Gold was a bit boring this week. It's stuck inside this range. It remains there. As of now as well, so no real updates. It all really is the same as with the previous week. This is where we we have it at the moment, and then we have natural gas where we're looking for the buys, and as per our idea and report, let me just close it like that. This is what we are working with. Bullish divergence with this kind of double move here. Daily chart breakout, bullish divergence, a reversal convergence created, pullbacks and continuation. And of course on the 4-hour chart we had amazing impulsive move, pullbacks looking for continuations from around the 50 zone. We also got the trendline breakout here, and now we're expecting it to push higher. The swap here is a bit of a killer, but at the end of the day, if we— if it manages to push higher in normal way— pace, not way, pace— it could be well worth it. But if it starts arranging and taking weeks and weeks and weeks to develop, then the swap could really eat up the profits. And it seems that, um, we spoke about that, discussing it with many traders in our club. It seems to be the case in many brokers, so be careful there if you're going to hold it for the longer run. Then we have the last 2. Which is Bayer and Deutsche Bank. And this— those are long-term trades, guys. This one pushed precisely from the trend line. We had it here as invalidation zone, now moving upwards. This one, pretty much same story. Maybe we can go back to the report. Bayer and Deutsche Bank. So basically expecting it to continue higher. No real changes here. This is the special cycle that we're working with, the long-term one, and the second leg of it. And that's Deutsche Bank, okay? Multiple divergences here and looking for this continuation up. So that would be all for this week, guys. Those were our ideas. If you like this kind of videos, please show your support by clicking the like button and make sure to subscribe to our channel. We post— excuse me— video ideas and trade setups throughout the week, completely free. Of course, you can follow up on that, and of course, make sure to join us in our Telegram channel. You can find, find the link below in the comment section. So wishing you fantastic weekend, and I'll see you next week.