Good morning all

After last week’s excitement and loads of pips in the bank we can say we are having a sleepy start to the week.

Why?

Well after strong moves like we had last week price sometimes takes a little bit of a breather, plus we had a pullback holiday yesterday in the US so volume/momentum was down……..but never fear when Pierre is near…….

Let’s see if we can spot some trades that might set up for the week ahead:

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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 ` Forum` Tab and click on it…….once in there, look for `Main forum and Current weeks trades` and click on it………Once in there look for `Pierre`s Earth and Sky Trading week `and click on it……..once in there, look for the Current week`s Thread Tab and click on it………..easy as pips! 😉

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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` please make sure to read the supporting notes for this system – Look for unit  in the education area under Earth and Sky System.

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.

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

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The spaghetti indicator (RS All) :

The spaghetti indicators shows this morning that the market is flat on all pairs

I will be keeping an eye on the spaghetti Indi as it will help me to focus on certain pairs once the 8 and minus 8 levels are broken.

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1) Euro Index on the DAILY chart :

Difference between last week’s open/close: Min 5 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 5 pips lower than the opening price…….so we were very flat…….so we can’t fib the previous week on the 4 hour chart to get the zone. Now we have 2 options.

 

1) To fib on the 4 hour chart from the high on the 5th to last week’s low to get the zone or

 

2) To fib the daily chart – from last month’s high to this month’s low to get the zone.

 

I am going to fib the daily for now ……………

 

Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 99.62 and 99.99 levels

Potential area to look for reaction: At the 99.61 and 99.66 and 99.77 levels.

Potential Profit take areas: At the 99.22 and 98.90 weekly pivot levels.

MACDEE Divergence: No
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 98.98 and 98.87 and 98.21 pivot levels

Potential Profit take areas: At the 99.31 and 99.57 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 are now at key support levels as we have the monthly and weekly pivot points in the same areas…..98.98 and 98.90 so possible roadblock for this one followed by a counter 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 4 hour chart:

Difference between last week’s open/close: Plus 7 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 plus 7 pips higher than the opening price…….so we were very flat. Now we have 2 options.

 

1) To fib on the 4 hour chart from the high of last week to last week’s low to get the zone or

 

2) To fib the daily chart – from THIS month’s high to THIS month’s low to get the zone.

 

I am going to fib the 4 hour for now as we already had a strong move down yesterday.

 

Price is under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 1.0601 and 1.0641 levels

Potential area to look for reaction: At the 1.0621 and 1.0635 and 1.0654/61 levels.

Potential Profit take areas: At the 1.0538 pivot level.

MACDEE Divergence: No
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 1.0538 and 1.0522 pivot levels.

Potential Profit take areas: At the 1.0608 main pivot 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:

Wait for price to come to our areas.

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 102 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? No

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 120.47 and 120.87 levels

Potential area to look for reaction: At the 120.56 and 120.87 and 121.00 levels

Potential Profit take areas: At the 119.77 mother in law 200 EMA levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 119.77/68 daily 200 EMA levels

Potential Profit take areas: At the 120.38 main weekly pivot 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:

Possible roadblock at the 38.2 fib today at 120.28 so keep an eye on this one too for a possible short set up….I will prefer a bigger pullback to at least 120.56

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 4 hour chart:

Difference between last week’s open/close: Min 40 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:

Looking at the chart we might be in for a range between the 0.8572 level ( top) and 0.8458 ( bottom) as we have loads of EMA`S and other reasons at these mentioned levels. So keep an eye on it for possible trade set ups from these levels.

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 4 hour chart:

Difference between last week’s open/close: Min 51 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? No

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.

Stochastic: No man’s land

Notes:

Sitting on my hands with this one. We camping out at the weekly main pivot plus we have loads of EMA`S here too PLUS WE TRAPPED IN A TRIANGLE……..so we need to wait for a breakout

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 4 hour chart:

Difference between last week’s open/close: Min 183 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 141.23 and 142.02 levels

Potential area to look for reaction: At the 141.39 and 141.56 and 141.82 EMA levels.

Potential Profit take areas: At the 140.00 and 139.00 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 139.63 and 139.05 pivot level.

Potential Profit take areas: At the 140.93 main weekly pivot 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:

Key resistance at the 200 EMA`S this week at 141.56 and 141.82

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 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.

Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 0.7465 and 0.7331 levels

Potential area to look for reaction: At the 0.7577 and 0.7555 and 0.7509 EMA levels

Potential Profit take areas: At the 0.7664 AND 0.7725 levels

MACDEE Divergence: YES !!!!!!!!!!!!!!!!!!!!!!!
Stochastic: No man’s land BUT ALSO DIVERGENCE HERE !!

Counter Trades:

Potential Counter Trades: At the 0.7700 and 0.7725 levels ( Weekly and monthly pivot point here)

Potential Profit take areas: At the 0.7581/0.7560 –  200 EMA 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 a weekly and monthly pivot starting at 0.7726 so expecting resistance here !!

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

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8) Aussie/JPY on the DAILY chart:

Difference between last week’s open/close: Min 82 pips

GAP TRADING:

Did we open with a gap this week? No

Did the gap close? No

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 closed min 82 pips lower than the opening of last week so price was trending down, but main trend is still up so we have to fib the daily chart.

Price is above the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Long
Potential trading zone: Between the 86.40 and 85.48 levels

Potential area to look for reaction: At the 86.84 ( 38.2 fib) and 86.21 and 85.79 levels.

Potential Profit take areas: At the 87.55 and 88.25 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 88.00 and 88.25 pivot point level.

Potential Profit take areas: At the 86.97 9 38.2 fib ) 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:

While the 55 EMA at 85.79 holds……my bias will stay to look for longs.

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 4 hour 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.

Last week we closed min 82 pips lower than the opening of last week so price was trending down, but main trend is still up so we have to fib the daily chart.

Price is under the 200 EMA
34 EMA (sky) is above the 55 EMA (earth)
Direction: Mixed
Potential trading zone: Between the 113.79 and 114.37 levels

Potential area to look for reaction: At the 113.68 and 113.79 levels.

Potential Profit take areas: At the 112.62 and 112.04 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 112.04 and 111.77 pivot point level.

Potential Profit take areas: At the 113.50 main weekly pivot level..

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 get the resistance we need here at the 200 EMA at 113.68 and we brake to the upside for some reason…..then I will re look at 114.38 and 114.95 for possible short set ups.

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10) USD/CAD on the DAILY chart:

Difference between last week’s open/close: Min 30 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 under the 200 EMA
34 EMA (sky) is under the 55 EMA (earth)
Direction: Short
Potential trading zone: Between the 1.3215 and 1.3338 levels

Potential area to look for reaction: At the 1.3157 and 1.3177 and 1.3195 levels.

Potential Profit take areas: At the 1.3075 and 1.3024 weekly pivot points.

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 1.3024 and 1.2958 pivot point levels.

Potential Profit take areas: At the 1.3075/94 and 1.3141 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:

Hitting key resistance areas this morning so possible short set ups on the cards.

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

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11) USD Index on the DAILY chart:

Difference between last week’s open/close: Min 16 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:

I am sitting on my hands with his one for now……we are at key levels as we have loads of EMA`S here at 100.92 and monthly main pivot point…….my feeling is to wait and see if we going to break to the downside……and then for price to range between the daily and 4 hour 200 EMA`S !!

If we break to the upside……to re look to short from the WR1 pivot at 101.57 area.

Correlation: Remember that the Dollar Index is negative correlated with the Euro Index (They move in opposite direction) so only take one trade at a time as you will double your risk if you took trades on both index`s.

If you don’t have the index on your platform…..download a demo account with Forex LTD at http://www.forexltd.co.uk/

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

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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!

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