1. look at stoc in 1 hour

2. look at Correlation

Well let’s have a look literally :

I don’t trade Fridays……

I don’t like interest rate announcements

I hardly ever look at bigger time frames than the daily………………

Step 1:

My main chart where I do my homework on will be on the 4 hour chart — I love my 4 hour charts……..here I will look for my zones for the week, then I will look for that multiple reasons in the Earth and Sky trading zones like pivots, EMA`S previous support resistance MACDEE divergence and so on……I will also look for areas where I think possible counter trades can set up………once I have my areas I will stick on the 4 hour till price gets to my preferred areas. NOW I will start to look for price to show me that it is slowing down…….so I will be looking for smaller candles and reversal candle formations

Now pretend you can’t see the candles to the right of the blue line……mmmm…. let me see if I can block it out aleast on the counter trade set

Counter trade example:

Earth and Sky Example:

Once we hit resistance levels I look out for the following candle formations to show me that price is slowing down

Step 2:

Ok…..next step….. I will drop to the 60 min chart………here I want to see price slowing down so I look for candle formations or double tops ………I want to see MACDEE divergence as it is key to what price is going to do over the next couple of hours — and what is stochastic doing- look for divergence here too and if it is oversold/ overbought……now I look if I can place a trend line on this chart that needs to be broken first on the chart………….

Once we hit resistance levels I look out for the following candle formations to show me that price is slowing down

Earth and Sky Example:

Now the steps are the same trading the Earth and Sky zone……………………………………

Step 3:

I drop to the 30 min chart. Here too look for what MACDEE is telling you and what the stochastic is telling you — now I wait for confirmation………like a trend line break or a 13/27 EMA cross……..once I have taken the trade…..I stay on 30 min chart and look where I need to place my stop………..

Counter trade example:

Earth and Sky Example:

Now the steps are the same trading the Earth and Sky zone……………………………………

Step4:

Ok once the stop is in place I go back to the 4 hour chart and look for areas where I want to take profit…..like EMA`S pivots and previous support/resistance areas that can form a roadblock again and set my profit take.

Counter trade example:

Now the steps are the same trading the Earth and Sky zone……………………………………

Step 5:

Now I manage the trade……………can you see how I moved my stop to under break even above. Now I can leave it and let it do its thing.

and that ladies and gents is how I do it !!

Ok………..there is not enough time now to do a video clip for this morning as the above took me a long time to edit………..BUT have a look at yesterdays webinar recording here in the main blog………there I showed you a catch up of what happened this week and what trades we took and where the 13/27 EMA cross kept us out of bad trades !!!!!!

Hi Pierre / Hi David
I do have 2 questions.
1. How we do it now is to look for our earth and sky zone on the 4 hour chart……then once price gets to the zone we look for multiple reasons like pivots, that 55 EMA and 200 EMA`S previous support/resistance and candle formations that kind of thing.
2. Once price shows me it is slowing down at my levels, I drop to the 60 min chart where I place then a trend line following the current move………and look for MACDEE divergence and Overbought/Oversold stochastic…….
3. Once I see that I drop to the 30 min chart and wait for a trend line break and a 13/27 EMA cross before I get into the trade.
Because I am trading bigger time frames it takes longer for setups to happen and the confirmation before we get into the trades might also take a while…….so the result is that we might get 1 to 3 trades a week only…..but that is enough for me.
My target is a 100 pips a week and that usually comes with only taking 1 trade a week…….average stop around 40/50 pips but in can be bigger on the big movers like Euro/JPY and GBP/JPY and Aussie/JPY pairs. There might be times where we have perfect technical’s for the week and everything is screaming at you to take the trade but we have high risk events/news scheduled once we hit the key levels and we can’t be for sure if the trade will work in our favour once the news comes out — like the Brexit vote that came out……I showed a short coming up in the webinar on the Thursday — it had everything going for it but it was too risky to take……..so the end result for the week was that we didn’t take a trade for that week……so no profit or loss for that matter……..and we just move on dot com and re look at the market the next week.
So that can happen that you make nothing for the week because news/events can change the market segment for a bit and we need then to relook at how we going to tackle the next set up that can only give an entry the next week…….however most of the months I do get my 100 pips a week…….400 pips for the month.
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