Marc Waldon

Earth & Sky Trading System Analysis

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Earth & Sky Trading System Analysis

Earth & Sky Trading System Analysis

This analysis is provided by my trading colleague and mentor, Pierre du Plessis. Pierre created his “Earth & Sky Trading System” in 2012 after joining my mentorgroup. This type of analysis is provided every week to members of my low cost Forex Mentor Program 

Please note, Pierre is from South Africa, so English is not his mother tongue BUT he is a great forex mentor and what is important is the analysis and trade plan he creates IN ADVANCE:

Good morning everyone

Loads of pairs this week where we have to look at the daily charts for that potential Earth and Sky trading zone……..problem is that most of them already triggered entries at the 38.2 fib`s LAST WEEK – so that is not cool 🙁

HOWEVER………….there are always pips with the Earth and Sky method if you just search for it…….I mean just look what the Euro/CAD pair did YESTERDAY !!!

Daily chart with Earth and Sky zone……..4 hour chart with the 4 hour 200 EMA at the 38.2 fib and last months high area as support

Earth & Sky Trading System

60 Min chart with trend line break at the 38.2 fib and 200 EMA…………..30 min 12/26 EMA cross as confirmation:

Earth & Sky Trading System

 

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!!! 👿

 

This week`s Analysis:

Earth & Sky Trading System

This is my current `Earth and Sky Trading System 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 are new to the `Earth and Sky` method, please make sure you download your free e-book.

Go to the `Forex 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.  

 1) Euro Index on the DAILY chart:

Difference between last week’s open/close: Min 66 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 96.69 and 95.69 levels

Potential area to look for reaction: At the 97.33/29 and 97.17 (38.2 fib) levels.

Potential Profit take areas: At the 98.38 levels

MACDEE Divergence: No
Stochastic: Coming out of overbought

Counter Trades:

Potential Counter Trades: At the 98.38 and 98.71

Potential Profit take areas: At the 97.77 and 97.33 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

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/

 2) Euro/Dollar on the 4 hour chart:

Difference between last week’s open/close: Min 120pips

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 1.0878 and 1.0928 levels

Potential area to look for reaction: At the 1.0871 and 1.0881  even as high as 1.0900 levels.

Potential Profit take areas: At the 1.0800 and 1.0779 and 1.0725 levels

MACDEE Divergence: No
Stochastic: No man`s land

Counter Trades:

Potential Counter Trades: At the 1.0779 and 1.0725 level

Potential Profit take areas: At the 1.0851 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:

Keeping an eye on the 200 EMA but be careful as we might spike past the 1.0882 level.

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.

 3) Euro/JPY on the DAILY chart:

Difference between last week’s open/close: Plus 26 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 130.39 and 132.50 levels

Potential area to look for reaction: At the 129.56 (38.2fib) and 130.17 levels.

Potential Profit take areas: At the 128.06 and 126.81 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 126.16 levels

Potential Profit take areas: At the 128.06 and 129.39 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 camping out at the 4 hour 55 EMA once again………..128.06…….I will prefer a pullback to at least the 129.39 level.

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!

 4) Euro/GBP on the DAILY chart:

Difference between last week’s open/close: Min 77 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 0.7380 and 0.7193 levels

Potential area to look for reaction: At the 0.7516 (MR1 pivot ) and 0.7469 (38.2 fib) and 0.7446 and 0.7406  levels.

Potential Profit take areas: At the 0.7597 and 0.7671 and 0.7755 levels

MACDEE Divergence: No
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 0.7755 levels.

Potential Profit take areas: At the 0.7597 and 0.7516 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 a little in no man’s land for me

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!

 

 5) GBP/Dollar on the DAILY chart:

Difference between last week’s open/close: Min 19 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 1.4661 and 1.4950 levels

Potential area to look for reaction: At the 1.4525 (38.2 fib) and 1.4607 and 1.4700 levels.

Potential Profit take areas: At the 1.4299 and 1.4083 levels

MACDEE Divergence: No
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 1.4061 level.

Potential Profit take areas: At the 1.4299 and 1.4396 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:

The 4 hour 55 EMA at 1.4299 is keeping price down…..but I will prefer a bigger pullback to at least 1.4525

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!

 6) GBP/JPY on the DAILY chart:

Difference between last week’s open/close: Plus 199 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 175.16 and 180.76 levels

Potential area to look for reaction: At the 170.90 (MS2 pivot) and 172.53 (38.2 fib) and 174.16 and 175.94 levels.

Potential Profit take areas: At the 168.60 and 164.76 levels

MACDEE Divergence: No
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 164.76 levels

Potential Profit take areas: At the 168.60 and 170.90 and 172.53 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:

Totally in no man’s land for me

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!

 7) Aussie/Dollar on the DAILY chart:

Difference between last week’s open/close: Plus 140 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 0.7107 and 0.7247 levels

Potential area to look for reaction: At the 0.7042 and 0.7068 and 0.7107 levels.

Potential Profit take areas: At the 0.6969 and 0.6839 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At 0.6839 level

Potential Profit take areas: At the 0.6969 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:

Price pulled back last week but got stopped by the 38.2 fib at 0.7042

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!

 8) Aussie/JPY on the DAILY chart:

Difference between last week’s open/close: Plus 274 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 84.96 and 87.83 levels

Potential area to look for reaction: At the 83.60 (38.2fib and MS2 pivot) and 84.26 and 84.86 levels.

Potential Profit take areas: At the 81.09 and 79.21 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 79.21 and 79.00 levels.

Potential Profit take areas: At the 82.14 and 83.65 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:

Price pulled back but found resistance at the 38.2 fib and MS2 pivot at 83.60 before dropping away again.

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!

 9) USD/JPY on the DAILY 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

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 119.82 and 121.76 levels

Potential area to look for reaction: At the 118.90 (38.2 fib) and MS1 pivot and 119.22 and 119.66 and 120.45 levels.

Potential Profit take areas: At the 117.62 and 115.94 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 115.94 and 115.25 levels.

Potential Profit take areas: At the 118.95 and 119.22 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:

Price pulled back last week but found resistance at the MS1 pivot and 38.2 fib and MS1 pivot…remember ones support breaks then it becomes resistance.

 10) USD/CAD on the DAILY chart:

Difference between last week’s open/close: Min 436 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 1.3992 and 1.3642 levels

Potential area to look for reaction: At the 1.4156 (38.2fib) and 1.4053 and 1.3938 levels.

Potential Profit take areas: At the 1.4418 and 1.4690 levels

MACDEE Divergence: No
Stochastic: No man`s land

Counter Trades:

Potential Counter Trades: At the 1.4690 and 1.4835 levels

Potential Profit take areas: At the 1.4418 and 1.4315 and 1.4156 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:

Price dropped like a stone last week……but found support at the 38.2 fib and MR1 pivot at 1.4127 that triggered a long yesterday that is currently 130 odd pips up.

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!

 11) Dollar Index on the DAILY  chart:

Difference between last week’s open/close: Plus 61 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.

Notes:

I am still not happy with this chart………last week I showed you we were trapped in a triangle. The triangle broke to the upside later in the week so all things good……we need to look for a long M2 setup from the trend line and 55 EMA at 99.15

However…..I just don’t feel comfortable with it.

Correlation: This pair is NEGATIVE CORRELATED (moving in the opposite direction) as the Euro Index!

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!  

Members also receive a video explanation to support the notes. Here is a link to test drive the service for just $1: CLICK HERE

best wishes

Marc Walton

Earth & Sky Trading System

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