Good morning everyone

Hope you are all well and healthy this stunning morning

We had loads and loads of gaps this week……….and all of them closed already by this morning……so if you know how to trade them……you would have been done trading for the week with loads of time to spare !!!

Lets have a look at some gaps that closed yesterday……………and yes………the Indi I created and used here in the examples might be available soon so watch this space.

 

Gap Trading In Forex!!

 

Gap Trading In Forex!!

 

African proverb for the week:

Gap Trading In Forex!!

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1) `Red Flag News` that can make you lose your pants if you are not careful. 💡

You can use the following web site for `SCHEDULED NEWS` for the week @ http://www.dailyfx.com/calendar

Don`t take any trades just before `Red Flag News` If you are already in a trade, protect your entry. I don’t want to meet up with you at Little Beach, Maui, Hawaii. Did you know this is a nudist beach?

For reference if you don’t want to believe me, have a look at the 4th of April 2013 at all the JPY pairs what happened with price after `Red Flag News` came out. ALWAYS TRADE WITH A STOP! 

Still don’t believe me? Then you must be new to Forex Trading

Have a look at what the Swiss did to the market on the 15th of January 2015!!

You would have lost the shirt on your back, your house, your car, your personality and your virginity for a 2nd time if you didn’t have a stop in place!!! 👿

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2) Where is the `Forum Hang out Spot` that everyone is talking about?

On the top of this main page, go to the `Members Forum` Tab and click on it…….once in there, look for `Pierre`s Corner` and click on it………Once in there look for `Pierre`s Trading week `and click on it……..once in there, look for the Current week`s Thread Tab and click on it………..easy as pips! 😉

Or if you have the need for speed and want to trade Gold. Oil and some other instruments and want to hang out with Omar………… On the top of this main page, go to the `Members Forum` Tab and click on it…….once in there, look for the `Operation Gold Rush` Tab and click on it – there you have it, you have struck gold!! 🙂  

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3) This week`s Analysis:

This is my current `Earth and Sky Trading Zones` – Please take note of the time frames I am looking at. 

Sometimes I will refer to `The mother in law` in my video`s or in my write up. The mother in law represents the 200 EMA (the pink line) on that specific time frame.

If you new to the `Earth and Sky` method, please make sure you download your free e-book.

Go to the ` Education Tab` here in the main blog and look for the `Earth and Sky Trading System` where you will find helpful videos using this system and some Indi`s I use.

Remember to have a look at some of the other methods we teach here at Forex Mentor Pro too.  

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1) Euro Index on the Daily chart:

Difference between last week’s open/close: Min 95 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 99.06 and 98.14 levels

Potential area to look for reaction: At the 99.49 ( 38.2 fib) and 99.06 ( 50% fib) and 98.60 ( 62.5 fib and daily 200 EMA) levels

Potential Profit take areas: At the 100.16 (WR1)  and 100.90 (WR2 and last month’s high)

MACDEE Divergence: No
Stochastic: Going into oversold

Counter Trades:

Potential Counter Trades: At the 100.90 level ( last month’s high and WR2 pivot)

Potential Profit take areas: At the 99.71 ( main weekly pivot)

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 we camping out at the 38.2 fib and monthly main pivot…….so I will be looking for good solid support and confirmation to long…….if we do break to the downside next line in the sand for me will be the 200 EMA at 98.60 where I will re look to go long.

Correlation: Remember that the following pairs make out the `Euro Index Basket` – The Euro/Dollar, Euro/JPY, EURO/GBP and the EURO/CHF. (They all move in the same direction) Use the `Euro Index` for extra confirmation and information to trade the basket pairs. If you don’t have the index on your platform…..download a demo account with Forex LTD at http://www.forexltd.co.uk/

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2) Euro/Dollar on the DAILY chart:

Difference between last week’s open/close: Min 111 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 1.1143 and 1.0983 levels

Potential area to look for reaction: At the 1.1219 ( 38.2 fib and 55 EMA and monthly main pivot) and 1.1121 ( daily 200 EMA)

Potential Profit take areas: At the 1.1427 (WR1) and 1.1463 ( last month’s high)

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At 1.1463 ( last month’s high) and 1.1587 (MR1)

Potential Profit take areas: At the 1.1321 9 – the 4 hour 55 EMA and 1.1250 ( 4 hour 200 EMA )

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:

Loads happening at the 38.2 fib at 1.1219 this week……..but if it do break for some reason my next line in the sand where I will re look to long will be from 1.1121 where we have the daily 200 EMA waiting.

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the Euro Index, Euro/JPY and the Euro/GBP. Be careful; don’t take the same trades on these four pairs at the same time!

Also remember: This pair is `NEGATIVE CORRELATED` (moving in the opposite direction) as the Dollar/CHF pair. Be careful; DO NOT OVER EXPOSE YOUR ACCOUNT BY PLACING OPPOSITE TRADES ON THESE TWO PAIRS.

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3) Euro/JPY on the 4 hour chart:

Difference between last week’s open/close: Min 138 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!!!!

Did the gap close? YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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 122.84 and 123.43 levels

Potential area to look for reaction: At the 123.43 ( WR1 pivot) and 123.59 (55 EMA)

Potential Profit take areas: At the 122.67 ( main weekly pivot) and 121.68 ( last week’s low) and 121.35 ( WS1)

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 121.35 (WS1)

Potential Profit take areas: At the 122.67 ( main weekly pivot)

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 that 55 EMA at 123.59 to give solid resistance before I will look to short this pair…..If we do break to the upside my next line in the sand to short from will be the WR2 pivot at 124.70 where the 200 EMA will also be waiting

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the Euro Index, Euro/USD and the Euro/GBP. Be careful; don’t take the same trades on these four pairs at the same time!

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4) Euro/GBP on the DAILY chart:

Difference between last week’s open/close: Min 100 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 0.7883 and 0.7766 levels

Potential area to look for reaction: At the 0.7900 ( 4 hour 200 EMA) and 0.7861 ( 55 EMA) and 0.7830 ( main monthly pivot)

Potential Profit take areas: At the 0.7969 ( 55 EMA) and 0.8026 ( MR1) and 0.8117 ( last month’s high and MR 2)

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 0.8026 ( MR1) and last month’s high at 0.8117

Potential Profit take areas: At the 0.7907 ( 4 hour 200 EMA)

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:

Price currently sitting on the 4 hour 200 EMA …….while the monthly main pivot at 0.7830 holds my bias will be to look for longs.

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the Euro Index, Euro/Dollar and the Euro/JPY. Be careful; don’t take the same trades on these four pairs at the same time!

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5) GBP/Dollar on the DAILY chart:

Difference between last week’s open/close: Plus 49 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.

Notes:

Last week price broke that triangle I showed you on the Tuesday to the downside…….pulled back and gave a M2 short set up…………..This week it looks once again if this pair is trapped in a triangle. I don’t like it when price don’t respect the 200 and 55 EMA`s……so be careful with this one.

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the GBP/JPY pair. Be careful; don’t take the same trades on both pairs at the same time!

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6) GBP/JPY on the DAILY  chart:

Difference between last week’s open/close: Plus 27 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Did the gap close? YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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 157.89 and 161.02 levels

Potential area to look for reaction: At the 156.42 938.2 fib) and 157.20 9MS1) and 157.89 ( 50% fib and 200 EMA)

Potential Profit take areas: At the 155.11 ( 55 EMA) and 152.77 (MS2) and 151.65 ( last week’s low)

MACDEE Divergence: No
Stochastic: No man`s land

Counter Trades:

Potential Counter Trades: At the 152.77 ( MS2) and 151.65 last month’s low

Potential Profit take areas: At the 155.11 ( 4 hour 55 EMA)

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 MS1 and 38.2 fib this week for good solid resistance –  but if that brakes to the upside…..next line in the sand will be the 200 EMA at 158.23

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the GBP/Dollar pair. Be careful; don’t take the same trades on both pairs at the same time!

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7) Aussie/Dollar on the 4 hour chart:

Difference between last week’s open/close: Plus 70 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Did the gap close? YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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 0.7667 and 0.7599 levels

Potential area to look for reaction: At the 0.7665 ( 50% fib and 55 EMA) and 0.7637 ( main weekly pivot)

Potential Profit take areas: At the 0.7743 ( WR1) and 0.7803 ( current high) and WR2 at 0.7843

MACDEE Divergence: No
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 0.7803 9 (current high) and 0.7843 ( WR2)

Potential Profit take areas: At the 0.7667 ( 55 EMA)

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 make a new high follow it with your fib to get the adjusted trading zone for the week.

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8) Aussie/JPY on the DAILY chart:

Difference between last week’s open/close: Plus 70 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!!!

Did the gap close? YES !!!!!!!!!!!!!!!!!!!!!!!

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.

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 don’t like it when price don’t respect the 55 and 200 EMA`S on the 4 hour chart……………..

Looking at the daily chart then I will keep an eye on the 85.70 and 86.30 levels for good solid resistance to short from. These two levels are last month’s high area plus the daily 200 EMA

Correlation: This pair is POSITIVE CORRELATED (moving in the same direction) as the AUD/USD pair. Be careful; don’t take the same trades on both pairs at the same time!

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9) USD/JPY on the DAILY  chart:

Difference between last week’s open/close: Min 24 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Did the gap close? YES !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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 111.11 and 112.83 levels

Potential area to look for reaction: At the 110.59 and 111.19 levels.

Potential Profit take areas: At the 109.18 and 108.00 levels

MACDEE Divergence: No
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 107.67 and 106.71 levels.

Potential Profit take areas: At the 109.18 and 110.59 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 we are camping out at the 55 EMA and it looks like it is giving resistance….however I will prefer a pullback to at least 110.59 and 111.19 where I will re look to short from

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10) USD/CAD on the 4 hour chart:

Difference between last week’s open/close: Min 6 pips

GAP TRADING:

Did we open with a gap this week? YES !!!!!!!!!!!!!!!!!!!!!!!

Did the gap close? YES!!!!!!!!!!!!!!!!!!!!!!!

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 1.2878 and 1.2947 levels

Potential area to look for reaction: At the 1.2878 and 1.2903 levels.

Potential Profit take areas: At the 1.2808 and 1.2740 and 1.2640  levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 1.2740 and 1.2640 levels.

Potential Profit take areas: At the 1.2808 and 1.2878 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 price makes a new low without the pullback…….follow it with the fib to get the adjusted trading zone for the week.

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11) USD Index on the DAILY chart:

Difference between last week’s open/close: Plus 52 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 98.06 and 97.30 levels

Potential area to look for reaction: At the 95.48 (38.2 fib) and 95.80 and 96.06  levels.

Potential Profit take areas: At the 94.58  and 93.59 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 93.59 and 93.06 levels.

Potential Profit take areas: At the 94.58 and 95.38 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 prefer if we can have a pullback to at least 95.38 before I will re look to short the index.

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Please remember we are NOT a “tipping service.” What we aim to teach you here at fxmentorpro is how to look for trade set ups using different methods, taking you’re trading to the next level.

Have a good one mates

Pierre 😛

`Learn from yesterday, Live for today and hope for tomorrow`

Remember to make the video clip bigger to see the levels more clearly!

If you would like to learn how to trade like a professional check out our 5* rated forex mentor program, RISK FREE; by clicking on the “Get Started Today” Button below

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