This was an excellent Forex Mentorpro Live Training Session with lots of positive feedback from attendees. We had fund manager Fotis Papatheofanous MBA from Crete, Pierre from South Africa, Marc in Lanzarote and Judith in England and with members from over 20 countries it was a truly global event!
That is part of the attraction of trading, done successfully you can live and work wherever in the world you want to be! Today we showed the new set up for M2 and Earth and Sky a new indicator from Fotis (its all about Spaghetti!) and a sneak peak at the new FMP 1 hour “Trigger” system that’s coming next week!
Below the video you will find Judith’s notes from the session including some excellent results from our combined analysis this week and trading ideas for next week.
Set-ups from this week.
Robbie & I banked 130 pips today from yesterdays Euro/Gbp (see our blog post and Marcs analysis as to why we were looking) and many, many 100’s of pips from Marc and Pierres analysis and they have more on the horizon.
Classic head and shoulders pattern as pointed out by Marc last week-Now look for the pullback. Robbie and I used fundamentals to get in, better than expected GBP wages and a weak euro, knowing we had a strong pattern and some great levels. We closed out for a 130 pip profit (See Thursdays Theory into Practise blog post).
Marc prefers to use the pullback, 77.50 is the area, on the 4 hour chart. Pullback will give another trade with 400 potential!
A lot of bigger time-frame patterns are setting up to provide opportunity, so watch them!
All explained in the video
GBPAUD: Looking for pullbacks and concerned with 55 EMA, stopped at the upper trend line. , look for the pullback to the uptrend, the bottom of the channel. Good potential.
AUDJPY: Multiple reasons for a pullback here, textbook M2 and look for as many technical reasons as possible. Looking for a similar set up. Confluence area is the place to short.
Trading is all about risk reward…the ratio has to be right.
NZDUSD: 500 pip potential, wait for a pullback, fundamentals support this trade and this is a great set up, classic broken trend line.
Fotis’ Currency Strength Indicator (Spaghetti Junction)
A piece of software donated from Fotis, it uses a lot of power so use one chart only.
Fotis Papatheofanous MBA is a fund manager and an experienced analyst ;he looks at the global macro themes and inter market relationships and all asset classes before looking at the technicals.
This algorithm should be on one chart only.
This is because we are solving some problems as it analyses all the pairs you enter, and then it creates indexes for all these symbols.
That uses a lot of juice!
This is important because it reveals the strength and weakness of each currency, and saves scanning 30 to 40 different charts. Fotis uses a 20 day timeframe, and the GBP is the strongest performer in the last 20 days. And the weakest is the Aussie. The USD also moving up.
We can use this information to find the pairs, weak against strong . A pair is essentially two economies so this will improve the probability of success. This ties well with Pierre’s and Marc’s systems. In a few seconds you see where to pay attention.
Do not use very small timeframes you will introduce too much noise.You can go inside the indicator and change the period. On a 4 hour again we see the best performers over a week period. (as per the period separators) At Fotis Trading Academy we have the automated version of this algorithm.
This is not a trading system, it is a radar not a signal generating indicator. It is used in combination with other tools. When you see a change of direction we pay attention, just like a RSI. Direction is very important!
Very high probability when used with other systems. You can use on a weekly time-frame, daily is probably the best. You can use it to assess if a move is over and you can watch the zero line.
This is a mathematical formula . It works like an oscillator at zero the currencies are dead! No momentum. All indicators have their merits. These are tools to simplify our approaches, success does not depend on indicators it depends on you! It requires discipline and an effective trade plan.
When you first install it will include pairs and if your broker does not have it then you must delete it from the list otherwise it will not work. In Earth and Sky, when a move is exhausted you can see when there is a good trade setting up in the opposite direction. Remember this is a scanner tool, not for entries and stops. Reducing the history bars will improve the speed.
Break out from the triangle
SP500, moved again from the top trend line …potential gain if you took it from the top and looks very bearish.
EURUSD: Major trend line weekly break will be very important and full of potential.
USDCAD: Prefer the break and close above since it is near the 200 EMA
USDJPY Another short but not supported by fundamentals, which are unpredictable and changeable.
In the new Version of M2, the trigger bar is based on macd…we are looking for divergence with price action. Marc rarely uses stochastics, but they do provide clues for oversold and overbought.
Pierre/ Earth and Sky
Template stays the same now with the spaghetti attached.
AUDUSD: Trade that gave over 100 pips so far this week for Pierre from Tuesdays analysis: Pierre shows what he did and why: Fib 4 hour from high to low, pulled back into the zone, resistance and the boli there also, on the one hour, look for pivot points, it looks like a football field and very important.! For confirmation, 13/27 ema cross, and that now generates an arrow, right click and you can turn the alert on . First profit take was at last weeks low, and 0. 7213,a key level. 100 pips a week is a good profit! Stop above the high, about 35 pips.
White background template is possible .
Watch pivots! And the spaghetti is flattening. Also a 200 EMA and previous support and resistance. The new spaghetti tool is going to really help and very exciting for FMP
200 EMA is now where price is so that is a place to take profits.
The spaghetti is not only good it is free!
The new FMP 1 Hour trigger System
Marc unveiled an exciting new system, to be revealed and sent out Tuesday of next week. The idea is to start with spaghetti (first course ) to focus on strength and weaknesses of the indexes, and Marc shows in the attached video how it can be used. It is not available until Tuesday and we will talk about it next Thursday. It is in Beta so for demos only. Trading has to be done with a solid approach and excellent risk management and only a demo account.
In Fotis, we use a system called F1 using the smaller time- frame to get in and the larger to stay in! The idea of this new system is to help with entries. Another great live session this time next week.
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