Good morning everyone.
Tuesday morning I showed you the spaghetti indicator is telling us to keep an eye on the NZD, Aussie and JPY currencies for possible trade set ups.
Let’s have a look at the Tuesday morning spaghetti Indi again:
O boy o boy…….did this turn out to be spot on this week……did you catch any of the moves:
Here we have a some Earth and Sky zones on the 4 hour charts where trades where triggered.
Can you see how the Earth and Sky works on any currency pair and not only on the 10 pairs I look at on a Monday/Tuesday morning for the analysis for FMP ?
Now with that in mind……lets have a look at what the spaghetti Indicator is telling us right now !!!
Looking at the above we can see that the Euro and CHF currencies are overbought……….and the Aussie and NZD currencies are oversold………..so our focus have to shift to these pairs:
Lets have a look at the charts and what we can spot on them and if we have any trade setups…..remember, we need to look for reasons why we want to take the trade.
Can you spot the reasons? Can you spot the areas where we want to do business at the roadblocks? Can you spot the correlation between these charts? Can you see why you cant take ALL of them at the same time !!!! Can you see how some charts looks better than others as they are at road block areas where others might not be at roadblock areas yet ???
The currencies in no mans land……………not so sexy !!!!
The currencies in overbought/oversold areas……………Mmmm very sexy !!!
Let the spaghetti indi show you where you need to concentrate on the beach…….Ooooo…….. mmmmmm…..Sorry……..On the charts I should say !!! 🙂
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Let’s have a look at my Tuesday notes and compare it to what happened this week:
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1) Euro/Dollar on the DAILY chart:
Difference between last week’s open/close: Plus 33 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy”
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Last week we only closed min 33 pips lower than the opening of last week so we are very flat…..that is why I fib the daily chart this morning to get the earth and sky long zone for the week ahead.
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 1.0762 and 1.0667 levels
Potential area to look for reaction: At the 1.0807/1.0775 (38.2 fib area) and 1.0748 and 1.0736 levels.
Potential Profit take areas: At the 1.0847 and 1.0952 and 1.0966 levels.
MACDEE Divergence: No
Stochastic: Overbought
Counter Trades:
Potential Counter Trades: At the 1.0952 and 1.1049 levels.
Potential Profit take areas: At the 1.0847 and 1.0807 levels.
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
Currently in no man’s land…..wait for price to come to your levels first before you take any trades.
Fridays notes:
Price didn’t pull back to my preferred areas at the 1.0807/1.0775 (38.2 fib area) and 1.0748 and 1.0736 where I wanted to look for longs. Price did however made new highs so we had to follow it with the fib to get the adjusted trading zone for the week.
Looking back this morning….we can see how we found support at the weekly main pivot for most of the week followed by the bullish move that started yesterday…….for me however there was now trade as I was waiting for a bigger pull back.
Possible counter trades now at 1.1000 and 1.1049.
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2) Euro/JPY on the 4 hour chart:
Difference between last week’s open/close: Plus 181 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 120.67 and 119.79 levels
Potential area to look for reaction: At the 120.67 and 120.21 and 119.79 levels.
Potential Profit take areas: At the 122.64 levels.
MACDEE Divergence: YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: Overbought
Counter Trades:
Potential Counter Trades: At the 122.64 and 123.00 levels.
Potential Profit take areas: At the 120.67
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
If we look at the daily chart then we can see we have a big resistance level waiting at 123.00 level. We also have MACD divergence warning us that a potential correction is on its way.
Fridays notes:
After my write up price made new highs so we had to follow it with our fib to get the adjusted trading zone for the week. Price broke the resistance pivot to the upside at 122.64 and got very close to the WR2 pivot at 123.86 where after it started to pull back.
When we were at the WR1 pivot, we had no confirmation to short yet as we didn’t have a trend line break or ribbon cross….so it kept us out of a bad counter trade at this level.
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3) Euro/GBP on the 4 hour chart:
Difference between last week’s open/close: Min 44 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 0.8468 and 0.8500 levels
Potential area to look for reaction: At the 0.8500 and 0.8507 and 0.8531 last week’s high area..
Potential Profit take areas: At the 0.8405 and 0.8381 levels.
MACDEE Divergence: No
Stochastic: No man’s land
Counter Trades:
Potential Counter Trades: At the 0.8405 and 0.8381 levels.
Potential Profit take areas: At the 0.8453 levels.
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
I will be keeping an eye on the 55 EMA`S and 200 EMA to give resistance first before I will look to short this pair.
Fridays notes:
In the beginning of the week price pulled back into our short zone and found support at the 62.5 fib at 0.8484 where after it dropped and gave us some pips. Price however didn’t get to our preferred profit take at last week’s low……but we did make some pips.
Price pulled back into our short shone and this morning slammed right into the WR1 pivot and 2 x 200 EMA`S at the psychological level at 0.8500.
This will be key resistance for us.
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4) GBP/Dollar on the 4 hour chart:
Difference between last week’s open/close: Plus 108 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 1.2868 and 1.2819 levels
Potential area to look for reaction: At the 1.2833 and 1.2815 levels
Potential Profit take areas: At the 1.2365 and 1.2307 levels.
MACDEE Divergence: No
Stochastic: No man’s land.
Counter Trades:
Potential Counter Trades: At the 1.2965 and 1.3008 levels.
Potential Profit take areas: At the 1.2890 levels.
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
If we don’t find solid support at the WS1 pivot, be careful as we might go visit the mother in laws at 1.2695 and 1.2634 areas.
Fridays notes:
Price dropped back nicely in the beginning of the week and touched the 50% fib where after it shot to the upside. We didn’t get to our preferred profit take, at last week’s low however but there were still 70 odd pips in this move.
Price pulled back and dropped once again to the 50% fib at 1.2868 where after it once again found support followed by a bullish move that is 70 odd pips in the green again.
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5) GBP/JPY on the 4 hour chart:
Difference between last week’s open/close: Plus 285 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 142.33 and 141.20 levels
Potential area to look for reaction: At the 142.84 ( 38.2 fib) and 142.23 and 141.18 levels.
Potential Profit take areas: At the 144.61 and 145.62 levels
MACDEE Divergence: YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: Overbought
Counter Trades:
Potential Counter Trades: At the 144.61 and 145.62 levels.
Potential Profit take areas: At the 142.84 levels.
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
We have MACD divergence giving us a warning sign that there might be a correction on its way so take note.
Fridays notes:
After my write up on Tuesday morning, price made new highs so we had to follow it with the fib to get the adjusted trading zone for the week.
Price moved bullish but slammed right into the WR1 pivot at 145.62. We have MACD divergence so I am expecting a correction on this one. I am currently in a counter short from the WR1 pivot and will be looking to take profit at the 38.2 fib at 143.63 area.
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6) Aussie/Dollar on the 4 hour chart:
Difference between last week’s open/close: Min 74 pips.
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 0.7511 and 0.7547 levels
Potential area to look for reaction: At the 0.7543 and 0.7554 levels.
Potential Profit take areas: At the 0.7514 and 0.7502 and 0.7439 levels
MACDEE Divergence: No
Stochastic: Overbought
Counter Trades:
Potential Counter Trades: At the 0.7420 levels.
Potential Profit take areas: At the 0.7500 levels
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
Currently that 200 EMA`S at 0.7543/54 will be key resistance for this pair this week.
Fridays notes:
Stunning earth and sky short this week. Price pulled back to the trading zone and found resistance at the 200 EMA`S in the zone. Frome here on price dropped reaching last week low at 0.7439 giving us a home run trade.
Price even went lower….taking the WS1 pivot out…..but be careful now as stochastic is oversold……and we have MACD divergence showing up !!!
Remember….with the new lows we made we had to follow price to get the adjusted trading zone for the week.
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7) Aussie/JPY on the 4 hour chart:
Difference between last week’s open/close: Plus 17 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 83.64 and 83.18 levels
Potential area to look for reaction: At the 83.85 (38.2 fib) and 83.79 and 83.69 levels.
Potential Profit take areas: At the 84.15 and 84.64 levels
MACDEE Divergence: No
Stochastic: Overbought
Counter Trades:
Potential Counter Trades: At the 84.64 levels.
Potential Profit take areas: At the 83.96 and 83.79 levels.
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
I will be keeping an eye on the WR2 pivot for a counter short today.
Fridays notes:
Price got very close to the WR2 pivot where after it dropped like a stone. Price broke the cluster EMA`S at 83.77 to the downside……….following the Aussie/Dollar.
We dropped right past the earth and sky zone but we had no confirmation to long as the ribbon Indi on the 30 min chart stayed wide open.
Currently we hitting last week’s low and WS1 PIVOT SO I AM EXPECTING A CORRECTION ON THIS ONE.
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8) USD/JPY on the 4 hour chart:
Difference between last week’s open/close: Plus 125 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 110.84 and 110.22 levels
Potential area to look for reaction: At the 111.14 (38.2 fib) and 110.97 and 110.81 levels.
Potential Profit take areas: At the 111.75 and 112.15 levels
MACDEE Divergence: YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: Overbought
Counter Trades:
Potential Counter Trades: At the 112.15 levels.
Potential Profit take areas: At the 111.28 and 110.97 levels.
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
We have MACD showing divergence so take note as it is a early warning sign that possible correction can be on the cards.
Fridays notes:
After my write up on Tuesday, price made new highs so we had to follow it with our fib to get the adjusted trading zone for the week……price broke the WR1 pivot to the upside but slammed right into the WR2 pivot at 113.00 where after it dropped back – currently at the WRR1 pivot, now support giving us some pips with a counter short.
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9) USD/CAD on the 4 hour chart:
Difference between last week’s open/close: Plus 158 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 1.3554 and 1.3482 levels
Potential area to look for reaction: At the 1.3588 (38.2 fib) levels.
Potential Profit take areas: At the 1.3697 and 1.3755 levels
MACDEE Divergence: YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: Overbought
Counter Trades:
Potential Counter Trades: At the 1.3700 and 1.3755 levels.
Potential Profit take areas: At the 1.3583 levels.
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
We have MACD showing divergence so take note as it is a early warning sign that possible correction can be on the cards.
Fridays notes:
After my write up on Tuesday morning, price made new highs so we had to follow it with the fib to get the adjusted trading zone for the week. Price broke the WR1 pivot at 1.3755 to the upside but we very close now to the psychological level at 1.3800 area with MACD showing divergence so I am expecting a correction.
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10) USD Index on the DAILY chart:
Difference between last week’s open/close: Min 2 pips
GAP TRADING:
Did we open with a gap this week? No
Did the gap close? N/A
If the gap didn’t close, pop over to the education tab – Look under Marc`s name for his “Gap Trading Strategy” and how to trade it.
Earth and Sky Trading Zone for the week:
Remember, if price don’t give us the pull back but instead make new lows/highs follow price with your fib to get the “adjusted” Earth and Sky Trading Zones for the week.
Last week we only closed min 2 pips lower than last week’s opening, that is why I had to fib the daily chart this morning to get the earth and sky short zone.
Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 100.02 and 100.69 levels.
Potential area to look for reaction: At the 99.70 and 99.95 and 100.09 levels.
Potential Profit take areas: At the 98.68 and 97.97 levels.
MACDEE Divergence: No
Stochastic: Oversold
Counter Trades:
Potential Counter Trades: At the 98.68 and 97.97 levels.
Potential Profit take areas: At the 99.61 levels.
Warning: Counter trades are always more riskier than trading with the main trend so change your lot size accordingly if you want to counter trade !!!
Notes:
Currently in no man’s land for me. I will prefer a correction to at least 99.70 first before I will re look to short this Index.
Fridays notes:
Price didn’t give me the pullback I wanted to at least the cluster of EMA`S at the 38.2 fib at 99.70 so there was no trade for me on the index.
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That`s that.
Regards
Pierre
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