What do you mean – they look the same?

Late Thursday night (5 February), Ashley asked me in the forum for my thoughts on the EUR/NZD.

Technically, the pair had everything going for a short, but it was a bit too late in the week for my liking. I generally avoid taking new trades right before the weekend—especially when my P&L is already up. I told him exactly that – it was just too late in the week for me.

Of course, Murphy’s Law kicked in, and it turned out to be a great short on Friday.

So, is it a “lost” trade? Not at all.

At Forex Mentor Pro, our focus is on the MENTOR aspect of our name. My goal this year is to help you see the markets more clearly and develop the “brain patterns” necessary to spot these moves instinctively. Last week provided an excellent teaching moment, so let’s dive in and take a closer look.

A Masterclass in EUR/AUD and EUR/NZD Correlation

Last week provided a “textbook” example for currency traders watching the Euro crosses. If you were tracking EUR/AUD and EUR/NZD, you witnessed a perfect display of technical harmony. Both pairs didn’t just move in the same direction; they respected the exact same structural boundaries, hitting my “Earth and Sky short zones” simultaneously.

Here is a breakdown of how these pairs moved in lockstep and what this means for your trading strategy.

The Setup: Perfect Technical Convergence

Last week, both EUR/AUD and EUR/NZD reached critical overhead resistance levels— my “Earth and Sky short zones”.

The price action was almost identical:

Key EMAs: Both pairs pulled back into major Exponential Moving Averages (EMAs), which acted as dynamic resistance.
Resistance Confluence: These EMAs lined up perfectly with my “Earth and Sky short ” zones and weekly main pivot points.
The Signal: Just as they hit these short zones, both pairs printed clear reversal candles (look at that 4-hour candles on both – same resistance same wicks), signalling that the upward momentum had exhausted as sellers pushed price down at the resistance area and that is what formed the big wicks.
Because these two pairs were positively correlated, the short signal on one served as a powerful confirmation for the short signal on the other.

What is Positive Correlation?

In trading, positive correlation occurs when two currency pairs tend to move in the same direction.
In the case of EUR/AUD and EUR/NZD, the correlation is usually very high (often above +0.80).

This happens because:
The Base Currency: Both pairs share the Euro (EUR). If the Euro weakens globally, both pairs will likely fall.
The Quote Currencies: The Australian Dollar (AUD) and the New Zealand Dollar (NZD) are “commodity currencies” and “risk-on” assets. They are geographically and economically linked, meaning they often strengthen or weaken against the Euro at the same time.

How to Use Correlation in Your Trading
Understanding that EUR/AUD and EUR/NZD move together isn’t just a fun fact—it’s a strategic tool. Here is how a professional trader uses that information:

1. Enhanced Confirmation (The “Double Check”)

If you see a short setup on EUR/AUD but EUR/NZD is still charging upward without any sign of slowing down, you might want to wait. When both hit their “Earth and Sky short zones” and show reversal candles at the same time, your confidence in the trade increases significantly. It proves the move is driven by broad Euro weakness rather than a random spike.

2. Risk Management

This is the most critical part. Because these pairs are positively correlated, trading at the same time is essentially doubling your risk on the same trade.
If you short both for 2% of your account each, and the Euro suddenly spikes, you lose 4%.

Pro Tip: Pick the pair with the “cleanest” price action or the best risk-to-reward ratio, rather than over-leveraging across both.

3. Gauging Market Strength

Correlation helps you identify the “leader” and the “laggard.” If EUR/AUD hits the resistance zone and starts dropping while EUR/NZD is lagging behind, the laggard (EUR/NZD) often offers a “second chance” entry to catch the move before it follows suit.

The Bottom Line:
Last week’s performance was a reminder that the market isn’t a series of isolated events. By watching how EUR/AUD and EUR/NZD reacted to their respective “Earth and Sky short zones”, traders could see the big picture. When correlation, EMAs, and price action align, the “Earth and Sky” is truly the limit for potential profits.

NOW LOOK AT THE 4 HOUR CHARTS – CAN YOU SEE IT? 

• Earth and Sky short zones.
• Main weekly pivot points.
• EMAs – on the one a 55 and on the other a 55 and a daily 200 EMA.
• Look at both 4-hour candles with the big wicks (bearish pin bar at resistance) ……followed by a red candle……
• Overbought stochastics.

Now for homework 

Pop us a note in the forum why you think Ashley wanted to take the short on the Euro/NZD pair instead of the Euro/Aussie pair.

Hope you learned something today

Regards

Pierre

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I am writing this on Saturday afternoon. As yet, Trump hasn’t decided to attack Iran, but it’s a possibility. Most of the time, his announcements and actions seem to happen on weekends when markets are closed. If only folks knew what he was going to say or do they could make a fortune!

As we saw on Friday, there was a major sell-off in the metals and stocks. I bought more. After the massive gains in January, it was only logical that there would be pullbacks. I said last week that nothing goes up in a straight line.

I added to my gold holdings at $5000 and silver, initially at $92 and later in the day, from a bar, on my phone at $77.20. That’s technology for you. I also added to my platinum and palladium stocks and an ETF. I am still looking for opportunities in copper.

Hopefully, my thesis holds that supply and demand are the real drivers of commodities. Gold has the added benefit of being the ultimate safe haven.

Here is a great article by David Jensen (you should follow him, a lot of his content is free) on how Comex & the London Bullion Market are manipulating/breaking long-established rules, to try and stop gold and silver’s rise:

Problems With Friday’s Price Smash

Crypto

I explain in the video why I believe the big boys, Blackrock etc are trying to force BTC below $76,000. It has already dropped further and is currently at $79,000 as I write. I am not selling.

I recommend you to read Marc Chandler’s article, as he summarises the fundamentals around the world in his articles and also tells you what to expect from a fundamental perspective..

Marc to Market

The Forex Week Ahead+++++++++++++++++++++++

The week is the busiest, for the scheduled news of the month. As ever we need to tiptoe around most of it and avoid others. All explained in the video.

I am looking at the BIG areas and have some decent setups on some of the majors. I recorded the video on Saturday, so if anything happens in the Middle East or anything Trump-related, then I will need to revise my plans.

I will only take one trade at a time. if one loses, they probably all will. I show in the video the levels I have identified; however, if the markets go into meltdown on Monday, I may just sit on my hands.

Because of the news, it may be that Pierre and Ashley’s shorter timeframe strategies will be more successful, so make sure to keep checking into the forum

++++++++++++++++++

As always, remember correlation! 

BE Careful. Despite the $USA drop, the $index failed to break its range on the monthly and weekly charts and even look like reversing back up for a while. KEEP watching the index during the week

Notice how many pairs in recent weeks have bounced to the pip off the 200 & 55 EMAS. Use them to help you avoid losers and for targets when in a trade.

MAJORS

EURUSD:  Leaving it alone for now, 1.1825 is interesting, but I don’t have 5 reasons. Ashley said look at the 4HR. The GBP/$ has more reasons.

USDCHF: 0.7860 is a big area to watch but I am struggling to find a 5th reason. Watch the video.

GBPUSD:  Pin bar reversal at the top last week and the monthly 200 EMA was a big clue for a rejection. I am looking to long at 1.3470 but not on Thursday unless it stays where it is. See the video

USDJPY:

USDCAD: Dropped like a stone and then pulled back and failed to break the weekly 200EMA so leaving alone.

AUDUSD: Finally broke out. Probably the best setup but there is big news early Tuesday GMT so how do I aim to trade it? The area is 0.6735 and half 0.6760See the video

NZDUSD: Rejected at the monthly 200EMA. I am looking to long at 0.5860. It’s correlated with the AUD, so do not take both at once.

MINORS

I don’t like the look of the Yen pairs nor most of the minor/cross pairs. Ashley will post updates on these based on his shorter time-frame strategy. SOmetimes here, but mainly in the forum so check in there every day!

GBPAUD:

EURAUD: First area to look for clues on 4 hour is 1.7230 short. The bigger area is 1.7420

EURGBP:

AUDJPY:

GBPJPY:

NZDCHF:

New members, please note: If I am looking to take a trade long, for example, 1.5000, I place my order 10 pips above & 10 pips below for a short. This is because price often does not quite reach a major line and you need to allow for spreads.

We are NOT a “tipping service”; we aim to teach you how to trade for yourself.

Watch the video below for more detailed explanations of this week’s analysis and trade plan.

To find out more about our crypto journey, check out the mini-course, and if you want to get involved in what I believe is the next boom, scroll to the bottom of this page to find out more: CLICK HERE

You can watch the full video below, you can read the transcript or view the full screen by clicking the buttons below the video:

The post Weekly Analysis: Wild Days Not Over Yet? appeared first on Forex Mentor Pro.

In the live webinar, I showed how I avoided 3-4 losses so far this year. The old me would have taken these setups and probably been upset for the whole week. I have seen patterns for almost 6 years now, and no one can take that away from me. I know which ones are more likely to work and which are not. Of course, I’m not right all the time. In the end, it’s a game of probability.

It was not just me who avoided these losses; Marc did as well. He called out these same trades at the start of the week in his weekly analysis by showing you exactly what he was looking for. This is why we always tell you to start from the longer timeframes to have an idea of the bigger picture.

Another reason I was able to avoid these losses was that I was using my new strategy while analyzing the charts. It also gives me another point of view, take it as an extra confirmation.

I have spent the last year testing this in the background, the last 6 months using my own money and funding accounts to test it live in the markets and get a real feel for it. I have had more winners than losers, which is why I am sharing this strategy with you.

I shared live examples with you during the webinar and also showed you potential trades using this strategy. I also showed you how you can combine it with M2. If you want to know more about it check out my previous post.

Like I said in the webinar I am yet to upload a few more things to the course and hopefully I can finish it by the end of the week. I have been very busy lately on my holiday in India doing other jobs and trying to finish them side by side as I get back to UK at the end of the month. The days go quick here!

If you are interested in private coaching I still have some places left. We have a 10% discount running on the original price which also includes 1 year free membership to YIF. Marc has been killinnnn it in stocks and he shared all his extra ordinary gains with you in the previous webinar several times. Marc is up so far stocks +138%, Gold +65%, Silver + 153%, Crypto (long term holdings) -11%

You can view the details for it using this link – Private Coaching with Ashley De Sousa

The post How to Day Trade and Be Profitable in 2026 appeared first on Forex Mentor Pro.

A week or so ago I received an email from TradingView (the trading platform) offering a new yield curve tool. I played around with it and I thought it would be a good idea to create a blog post on the use of yield curves.

Here is the link https://www.tradingview.com/yield-curves/

In global trading and financial markets, a country’s yields, especially government bond yields, are closely watched indicators because they reflect both economic health and market sentiment. Bond yields essentially represent the return investors demand for lending money to a government. When yields rise, it often signals higher inflation expectations, stronger economic growth, or greater perceived risk in holding that country’s debt. This has a direct impact on currencies, equities, and commodity markets. For example, if U.S. Treasury yields increase relative to other countries’ bonds, the U.S. dollar often strengthens because global investors shift money into higher-yielding U.S. assets.

For traders, yields also influence interest rate expectations. Central banks adjust monetary policy in response to inflation and growth, and bond markets tend to price in those moves before they happen. This makes yield curves a powerful forecasting tool. A steepening yield curve (long-term yields rising faster than short-term) can suggest optimism about growth, while an inverted curve (short-term yields higher than long-term) often warns of recession. Currency and stock traders watch these signals closely to anticipate capital flows and risk sentiment.

In short, yields matter because they act as a benchmark for risk and return across markets. They affect everything from mortgage rates and corporate borrowing costs to the attractiveness of one currency over another. For anyone trading in forex, commodities, or equities, understanding yield movements across major economies is key to interpreting market direction and spotting opportunities

Typically…..Bond Yields rise or fall first, reflecting investor sentiment and central bank policy expectations. This directly influences interest rate expectations (what traders think central banks will do next). In turn, currencies (forex) move as capital flows toward higher-yielding assets.
-Equities (stocks) are affected because higher yields mean higher borrowing costs and competition for investor money.
-Commodities are influenced both by interest rates (cost of carry, demand outlook) and currencies (e.g., stronger USD = weaker gold/oil prices).

Thinus

The post Why are Yields Important? appeared first on Forex Mentor Pro.

This week, I thought I’d look at the principle of ‘Pyramiding’.

What Is Pyramiding?

Pyramiding involves gradually increasing your position size during a strong market trend, using unrealized gains rather than fresh capital. The key goal is to maximize profits while minimizing additional risk. Think of it as using the money you already made in a trade and betting with it again on the same trade as it is going in your direction. Free chips in a casino.

Importantly, new positions are only added when the market confirms your trade bias by continuing to move in your favor.

Example: Pyramiding in Forex (Long EUR/USD)

• Initial Trade: Buy 1 lot of EUR/USD at 1.0800

• Market Moves Up: Price rises to 1.0850

• Add Position: Buy another lot at 1.0850

• Further Gain: Price climbs to 1.0900

• Add Again: Buy a third lot

At this point, you’re holding 3 lots, each in profit, and benefiting from the ongoing uptrend.

Smart Rules for Pyramiding

• Add smaller positions each time: Reduce size with each new trade to limit risk.

• Use trailing stop-losses: Protect profits from earlier trades.

• Wait for confirmation: Only add positions after strong signals like trend continuation or a break of key support/resistance levels. You can also wait for confirmations in strong areas when price comes to re-test it again. Using candlestick confirmations could be another way to enter.

Risks of Pyramiding

• Sudden reversals can erase profits from all positions, especially the most recent ones with higher risk.

• Over-pyramiding can lead to overleveraging and emotionally driven mistakes.

• It wont work on every trade, you have to be very selective about which trade it might work best with. Hence why the high risk of losing what you already gained.

Bonus Tip: Exit Gracefully

• Don’t let greed take over. Begin scaling out as the trend shows signs of slowing.

• Use trailing take-profits or reversal signals to lock in gains and exit smoothly.

Kind regards,

Thinus

The post Adding Positions to Winning trades appeared first on Forex Mentor Pro.

Hi, a couple of weeks ago I recorded a new podcast with Etienne Crete of Desire to Trade Podcasts. If you are new or need a refresher, I explain in under 30 minutes my overall approach to the markets and how I trade.

I use the same techniques for stocks, metals & crypto.

Here at Forex Mentor Pro, we teach you how to find high-quality setups through our strategy. We focus on finding as many reasons as possible before taking a trade and sharing them in advance. Some of the reasons when finding a potential trade could be Fibonacci, trendline, round numbers, EMAs, and, lastly, combining it with some fundamentals. We combine them all together to give us a high probability trade that could go in our favour and we have been very good at this for many years.

The one thing that makes us unique among others is that we call out the trades in advance and we place forward orders, so you dont have to watch the charts or wait for a confirmation. We call these A grade setups. You simply put the trade and walk away.

I have listed out my multiple reasons that make up for the 5 reason checklist in the video below. To help you out I have added the screenshot from the video.

Please watch the video below on YouTube and give us a like and SUBSCRIBE 🙂

Kind regards,

marc

The post How to Trade Daily Charts for a Full-Time Income appeared first on Forex Mentor Pro.

Hi, here is a video showing my daily routine and a lot of possible forex trade set ups for the week ahead. As you will see there are a lot of possibilities, BUT…

There is also a lot of red flag news this week, and you must pay attention to correlation before taking more than one trade.

Here at Forex Mentor Pro, we teach you how to find high-quality setups through our strategy.

We focus on finding as many reasons as possible before taking a trade and sharing them in advance. Some of the reasons for finding a potential trade could be Fibonacci, trendline, round numbers, EMAs, and, lastly, combining it with some fundamentals.

The above video was uploaded Monday for our members and we have found 5 potential set ups for the week ahead.

Kind regards,

Marc

The post Potential 5 Reasons Trade Set Ups appeared first on Forex Mentor Pro.

Frustratingly I still get emails from folks who have heard me speak about crypto for over 4 years and they still haven’t taken any action! In the video I show lots of examples from previous posts. You can find posts going back to pre 2020 in my blogs here:

If you are interested in joining my investing group, where I share my portfolios & how to get involved in crypto. Including real time updates via Telegram,CLICK HERE

2025

Its a little difficult to predict anything at the moment until after President Trump’s inauguration. If he carries through on some of his crypto promises, I expect to see another year of massive potential to make life-changing gains, particularly on smaller chains. See the video for my reasoning.

Uranium 2023/2024 was very profitable for my followers and me. I am currently only still in CCJ, but I am looking for pullbacks to get back in. Demand is going up while supply is limited, so the price should continue to rise.

Gold, silver and especially miners. I still have around 25% of my portfolio in physical metals, stored in a vault in Switzerland. This is as a hedge in case everything goes wrong and or if inflation gets out of control in the USA. To leverage metals I was very active and took excellent profits from gold and silver miners in 2023/24. I am currently out of all of them, looking for pullbacks to get back in.

I need to do more research for my investing group before I share my thoughts on other sectors to invest in. Like others, I am focusing on those that should do well under a Trump government.

Forex

For the next few months at least and probably longer, I only want to buy the $USA.

The UK & Euro economies are both on their knees and both are run by either idiots (the UK) or idiots and control freaks the EU. I will only look to sell the Euro, GBP, AUd & NZD versus the USD.

Everything else is explained in the video.

The post My Forex, Stocks & Crypto Trade Plan for 2025 appeared first on Forex Mentor Pro.

We all want to be better traders going into next year, but it is not going to be given to you on a silver platter without any work. The markets tend to usually range or not move a lot, usually around the summer holidays and the Christmas period. But most of us don’t use this time to our advantage and have a deeper look into ourselves.

Excited for some Homework?!

When I first started in 2020, at the end of the year, I did a few things to improve my trading going into 2021, and I still do to this day, as you can always improve in trading. If you do this, you are giving yourself a better chance of getting closer to becoming a successful trader and entering the 10% club. So here are a few things you could do during the holidays as we have around three weeks off from this weekend.

Journal

I know this is the boring bit, and most of us find it hard to keep up to date with every trade. But there is a more straightforward solution. Just link your account to Myfxbook. It will record all your trades and has enough metrics to give you a good insight into your trading. It also lets you leave comments about your feelings about the trade. The best part is it is free. Yes, there are paid versions which also automatically import all your trades and provide metrics. But Myfxbook is good enough for a starter.

Data

In the modern world, everything is about data. Even your workplace focuses on data, as it wants to use it to improve areas where it is performing poorly. My previous workplace relied heavily on data, as it had to record factory performance, machine performance, cigarette sales, types of cigarettes sold, and much more. Excel was their best friend, and Power BI, a new software that is not so old, has made analysing data much quicker.

What are you doing if you don’t have any record of the trades you took, whether my fxbook or even your journal? What are you measuring? It is almost like a headless chicken running around on the farm and not knowing where to find food or a fisherman going into the wrong place to place his nets to catch fish. Without your trade history, you will never know how to improve on the things you are doing wrong. I’ll show you how below.

It is the most minor things

When I first looked at my data in the first year, I spotted a few things.

1. I traded many pairs as I experimented with which pairs I performed well on. I saw a few pairs I didn’t do well on, so it made sense to remove those and focus only on the ones I did well on. Why fight something you are not good at?
2. Mondays were my worst days, and I lost many trades. Hence, I always tell you that I’m never in a rush to get into a trade at the market open or early morning in London. I just wait for the NY open to see what the US traders think. If nothing changes, I would only consider proceeding with my plan. This is because I realised there are a lot of fake-outs on Mondays. Tuesday, Wednesday, and Thursday were my best days.
3. If you sit in front of the charts during the day, you might want to check whether you do better in the London or New York sessions. Have you ever considered that?
4. Some traders do better buying or selling. It’s bizarre, but yes. You can check if you are better at longs or shorts.
5. Are you holding your trades long enough or getting out early? What would the result be if you held the trade as per your plan? You might realise you could have 500 more pips this year.
6. Your average win should be higher than your average loss. In this way, you know you are taking high-probability trades.
7. How many strategies are you trading on your account? Are you trading M2, something of your own, or E&S ? If you trade more than one strategy on a single account, you will never know how you would perform trading a single strategy. My advice is to have a separate account for M2 trades and another for E&S or if you like day trading.
8. Check your entries and stops, whether you took a loss or a win, to see if you could have done better. Then, you can improve next time.

When I took into consideration some of these pointers I was able to increase my win percentage in the following year. I hope this helps, let me know in the comments.

You are your own best friend, so talk to yourself and take a deeper look over the holidays. I do look in the mirror and it tells me I need to work out more in the gym 🙂

I hope next year is a lot better than this year and I wish you all a Merry Christmas and Happy New Year in advance.

Kind regards,

Ashley

The post Your Christmas Homework appeared first on Forex Mentor Pro.

AI-driven trading strategies are transforming forex and financial markets by utilising machine learning, data analysis, and automation to enhance decision-making and execution speed. Here are some popular AI trading strategies:

1. Predictive Analytics and Sentiment Analysis
Description: AI uses historical market data and real-time news to predict price movements and identify trends. Sentiment analysis tools extract data from social media, news articles, and reports to gauge market sentiment, providing insights into potential currency movements.

Application: Predictive models trained on historical price patterns can identify early signs of market reversals or trends. Tools like natural language processing (NLP) interpret text-based sentiment to forecast short-term price impacts.

2. Algorithmic and High-Frequency Trading (HFT)
Description: Algorithms execute trades based on predefined criteria, such as technical indicators or arbitrage opportunities. AI enhances these algorithms by dynamically adjusting strategies based on changing market conditions.

Application: AI identifies minute price inefficiencies and executes trades within milliseconds, often taking advantage of high liquidity periods (e.g., during major economic announcements).
Tools: Platforms like MetaTrader support AI-driven algorithms.

3. Reinforcement Learning Models
Description: AI systems learn through trial and error, adjusting trading decisions based on past outcomes to maximize rewards. Reinforcement learning algorithms adapt dynamically to market changes.

Application: These models work well in volatile markets, continuously updating strategies to optimize performance as new data emerges.

4. Portfolio Optimization and Risk Management
Description: AI assesses portfolio risk and adjusts asset allocations based on market conditions and performance goals. It minimizes exposure to unfavorable trades while maximizing returns.

Application: AI-based tools monitor correlation between currency pairs, geopolitical risks, and macroeconomic data to rebalance portfolios in real-time.

5. Market-Making Strategies
Description: AI-powered systems provide liquidity by placing buy and sell orders around the current market price. AI enhances traditional market-making by optimizing order placement and adjusting spreads dynamically.

Application: Used by brokers or institutional traders to profit from bid-ask spreads while managing inventory risk effectively.

6. Pattern Recognition and Technical Analysis
Description: AI identifies complex patterns in technical charts that may signal potential breakouts, reversals, or continuation of trends.

Application: Neural networks trained on candlestick formations or moving averages can provide alerts or directly execute trades based on recognized patterns.

7. Arbitrage Trading
Description: AI identifies price discrepancies across multiple forex markets or platforms and executes trades to exploit these differences.

Application: Works best in high-liquidity conditions, ensuring rapid execution before price differences converge.

8. Adaptive Trading Systems
Description: AI creates hybrid strategies by combining technical, fundamental, and sentiment analysis, dynamically shifting between methods depending on market conditions.

Application: Particularly useful for traders who need versatility, as these systems adapt to trending, ranging, or volatile markets.

Challenges of AI Trading
Overfitting: AI models might perform well in backtesting but fail in live trading due to over-optimization for historical data.

Complexity and Cost: Implementing AI systems requires technical expertise and significant resources.
Regulation: Automated strategies must comply with market regulations to avoid legal issues.

AI trading strategies offer significant potential, but they require rigorous testing and monitoring to ensure effectiveness. Traders can use platforms like MetaTrader, QuantConnect, or NinjaTrader to develop and deploy AI-driven strategies.

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