Marc Waldon

Earth & Sky Forex Analysis

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Earth & Sky Forex Analysis

Earth & Sky Forex Analysis

bigstock-Tequila-Tequila-Tequila-car-78795542This is a copy of Pierre du Plessis Earth & Sky Forex Analysis for members of my forexmentorpro group.

Pierre is a full time, professional trader and mentor

He posted this on Tuesday 28th April and then revised and updated as this very tricky week progressed.

If you would like a copy of his Earth & Sky Trading System then CLICK HERE

Pierre provides detailed analysis every Tuesday morning and is available during the week in the Forex Mentor Pro forum. Its important in current markets to be able to adapt and make changes as the weeks progress. Here is his post:

Morning everyone

Hope you are all well and healthy!!

It will be a short week for me as we had a bank holiday here yesterday and one this coming Friday and I think next Monday too!!!!

No no no mates……I am from South Africa….not Mexico……we sometimes still work here – that is now to say if we have power !! :evil:

Take note of the time frames I used this week plus the MACDEE DIVERGENCE            I showed you on some pairs!!!  This is a pre -warning that price will be setting up for a pullback…..now add to that some pivots and for sure we can expect some roadblocks before the corrections, giving us some opportunities for counter trades!!!

Have you ever wondered why it is dangerous to drink and trade? The reason my friends………..the charts might be misleading !!

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

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

:evil: 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!!! :evil:

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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!! :smile:  

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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.  :!:

Remember, if price don’t pull back on the pairs you trade and make new lows/highs follow price with your fib to get the adjusted Earth and Sky Trading Zones for the week.

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 `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.  

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 1) Euro Index on the DAILY chart:

Difference between last week’s open/close: Plus 47 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 96.17 and 97.27 levels
Potential area to look for reaction: At the 95.99 and 96.57 levels.

Potential Profit take areas: At the 93.94 and 93.58 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 93.58 level

Potential Profit take areas: At the 95.48 and 95.99 levels

Notes: Key resistance levels for the index this week will be 96.00 and 96.57. While the top at 97.27 holds……my bias will be to look for shorts on this Index…..Keep an eye also on the Dollar Index and place these two charts next to each other for extra confirmation

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/USD on the DAILY chart:

Difference between last week’s open/close: Plus 202 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 1.0853 and 1.1048 levels

Potential area to look for reaction: At the 1.0918 and break of 1.0816 levels.

Potential Profit take areas: At the 1.0464 and 1.0390 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 1.0390 levels

Potential Profit take areas: At the 1.0816 levels

Notes:  Big area now for this pair to make up its mind……That 55 EMA at 1.0918 will be key resistance this week!!!

 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 DAILY chart:

Difference between last week’s open/close: Plus 77 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 130.35 and 132.47 levels

Potential area to look for reaction: At the 129.56 and 130.12 and 130.40 levels.

Potential Profit take areas: At the 126.10 and 125.64 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 125.64 level

Potential Profit take areas: At the 128.82 and 129.56 levels

Notes:  While we under that 131.41 level….my bias will to look for shorts!!!

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 63 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 0.7171 and 0.7199 levels

Potential area to look for reaction: At the 0.7171 and 0.7180 levels.

Potential Profit take areas: At the 0.7110 level

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 0.7110 and 0.7059 levels

Potential Profit take areas: At the 0.7168 level

Notes: I will prefer if price can pullback to at least 0.7168 before I will re look to short.

 

Notes:  Looking at the 4 hour line chart……then we might be ranging between the high at 0.7230 (previous support/resistance level plus 4 hour 55 EMA) and 0.7169 (last week’s low and this week’s WS1 pivot)                       on this pair. So possible range trades will be on the cards once we hit the mentioned 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/USD on the 4 hour chart:

Difference between last week’s open/close: Plus 209 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 1.5061 and 1.4960 levels

Potential area to look for reaction: At the 1.5075 and 1.5031 and 1.4960 levels

Potential Profit take areas: At the 1.5191 and 1.5292 levels

MACDEE Divergence: YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 1.5264 and 1.5292 levels

Potential Profit take areas: At the 1.5075 level

Notes:  Possible counter short at 1.5292 will be on the cards if we find resistance there. We have MACDEE divergence showing up so we can expect the pullback.

 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: Plus 262 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 179.41 and 178.36 levels

Potential area to look for reaction: At the 179.55 and 178.92/72 levels

Potential Profit take areas: At the 181.51 and 181.91 levels

MACDEE Divergence: YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 181.91 level

Potential Profit take areas: At the 179.55 levels

Notes:  We have MACDEE divergence showing up….so expect a pullback. Possible counter short at 181.91 back down to 179.55.

 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) AUD/Dollar on the 4 hour chart:

Difference between last week’s open/close: Plus 25 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 0.7781 and 0.7731 levels

Potential area to look for reaction: At the 0.7784 and 0.7772/66 and 0.7737 levels.

Potential Profit take areas: At the 0.7886 level

MACDEE Divergence: No
Stochastic: Overbought

Counter Trades:

Potential Counter Trades: At the 0.7886 and 0.7943 levels

Potential Profit take areas: At the 0.7784 level

Notes: Price is overbought at the moment as we hitting the WR1 pivot at 0.7886. I will be keeping an eye open at this level and 0.7943 for a possible counter short back down to the weekly main pivot at 0.7784

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) AUD/JPY on the DAILY chart:

Difference between last week’s open/close: Plus 36 pips

Did we open with a GAP? No

Notes:  MACDEE is high…..stochastic is overbought – Price overshot the MR1 pivot at 93.66 and by the looks of it – will be on its way to the daily 200 EMA waiting at 94.38 where I will re look to short this pair. We have the 200 EMA waiting and if you look to the left of the chart….we can spot previous support/resistance………..drop to the 4 hour chart we can see this is also the WR2 pivot so this is a big level!!!

If we do manage to get a short I will look to take profit once we hit the roadblock at 92.78 where we have the daily 55 EMA and 4 hour 200 EMA waiting !!

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/CHF on the 4 hour chart:

NOTES: I am not touching any CHF pairs at the moment.

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10) USD/JPY on the 4 hour chart:

Difference between last week’s open/close: Plus 9 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 119.41 and 119.74 levels

Potential area to look for reaction: At the 119.36/41 and 119.46 and 119.59 levels.

Potential Profit take areas: At the 118.75 and 118.25 levels

MACDEE Divergence: No
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 118.25 level

Potential Profit take areas: At the 119.16 level

Notes:  We have loads of EMA`S in the trading zone……let’s hope it will stand its ground as a resistance level as last week it didn’t respect any EMA`S !!!

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11) USD/CAD on the 4 hour chart:   

Difference between last week’s open/close: Min 38 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 1.2195 and 1.2252 levels

Potential area to look for reaction: At the 1.2194 and 1.2234 levels.

Potential Profit take areas: At the 1.2082 level

MACDEE Divergence: YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: No man’s land

Counter Trades:

Potential Counter Trades: At the 1.2082 and 1.1991 levels

Potential Profit take areas: At the 1.2194 level

Notes: We have MACDEE divergence showing up so we can expect a pullback…..I will prefer a pullback to at least 1.2194 before I will relook to short…….Possible counter trade from the WS1 pivot at 1.2082 back up to main weekly pivot might be on the cards early in the week.

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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12) USD Index on the 4 hour chart:

Difference between last week’s open/close: Min 46 pips

Did we open with a GAP? No

Earth and Sky Trading Zone 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 97.47 and 97.96 levels

Potential area to look for reaction: At the 97.38 and 97.56 levels.

Potential Profit take areas: At the 96.47 and 96.31 levels

MACDEE Divergence: YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stochastic: Oversold

Counter Trades:

Potential Counter Trades: At the 96.31 and 95.67 levels

Potential Profit take areas: At the 97.00 and 97.38 levels

Notes: We have MACDEE divergence showing up…..so expect a pullback. I will prefer a pullback to at least 97.38 before I will relook to short.

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

`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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