Hi everyone. This is a copy of Pierre’s analysis for members following his Earth & SKy forex trading strategy.

He posted this on Tuesday as usual as he doesn’t trade on a Monday (nor Friday’s)!

Last week he had 14 potential trade set ups this week only. So as traders we need to be flexible. That’s why we have 3 different forex trading strategies:

The M2 that is based around weekly and daily charts.

Earth & Sky Forex trading Strategy on 4 hour charts

M3 on a 30 minute. That way we can always find potential trades.

This was Pierres’ analysis for this week:

Looking at the pairs tonight then I only have 2 pairs that meet all the criteria to fib the 4 hour chars for the Earth and Sky trading zones.

Remember I only want to trade from the 4 hour charts so everything needs to line up.

If we in an uptrend then I want the direction indicator to show me long (green lights) on the 4 hour and daily and we must have a close above plus 50 pips for the previous week

So the indicator will look like this…..

If we in a downtrend then I want the direction indicator to show me shorts (red lights) on the 4 hour and daily and we must have a close under min 50 pips for the previous week.

So the indicator will look like this…..

The following are examples of the direction indicator that doesn’t meet all the requirements and doesn’t line up for me to trade the 4 hour charts.

 

LETS HAVE A LOOK WHATS COOKING  !!!

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1) NZD/CAD on the 4 hour chart:

Direction Indicator: The direction indicator is long on the 4 hour AND THE daily chart and we closed plus 155 pips higher than last week`s opening so we DID meet ALL of the requirements to fib the 4 hour chart for this week’s Earth and Sky trading zone.   

Currently I have a long zone between 0.8854 and 0.8811 with areas to keep an eye on 0.8854 and 0.8834 and 0.8811 for longs to set up from…..

Counter shorts from the WR1 pivot at 0.8987 area.

Notes:

If we keep making new higher highs without the correction follow price with your fib to get the adjusted long zone for the week.

If we DROP past the earth and sky long  zone for some reason then look at a plan B area between the 4 hour 200 EMA at 0.8800 and last week’s low at 0.8768 to look for support to long from again.

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2) USD/JPY on the 4  hour chart:

Direction Indicator: The direction indicator is short on the 4 hour AND THE daily chart and we closed min 151 pips lower than last week`s opening so we DID meet ALL of the requirements to fib the 4 hour chart for this week’s Earth and Sky trading zone.   

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With only 2 potential Earth and Sky pairs for me this week I had a look at some other pairs where we have good support or resistance levels where possible trades can set up from. Pairs that stands out for me……

  • USD/CHF has a resistance level and WR2 pivot at 0.9193 where we might find resistance for a potential short to set up from again.
  • USD/CAD has resistance level at the MR1 pivot and daily 55 EMA at 1.3326 where we might find resistance for a potential short to set up from again.
  • NZD/JPY has support at the WS2 pivot and daily 200 EMA at 69.29 where we might find support for a potential long to set up from again.
  • NZD/USD had a long zone this week but price broke the earth and sky long zone HOWEVER we have a 4 hour 200 EMA at last weeks low at 0.6649 where we might find support for a potential long to set up from again.
  • GBP/NZD has a WR1 pivot and 4 hour 55 EMA at 1.9304 where we might find resistance for a potential short to set up from again.
  • GBP/CAD has a WR1 pivot at 1.7198 where we also have a daily 55 EMA and 4 hour 200 EMA where we might find resistance for a potential short to set up from again.
  • GBP/Dollar has a WS1 pivot and daily 200 EMA at last weeks low at 1.27557 where we might find support for a potential long to set up from again.
  • Euro/NZD has a WR1 pivot at the 200 EMA and 55 EMA where we might find resistance for a potential short to set up from again.
  • Euro/Aussie has a WR1 pivot and daily 55 EMA at previous resistance areas at 1.6346  where we might find resistance for a potential short to set up from again.

So keep an eye on the two this week…

Regards

Pierre