The growth of the pair again led to the test of the monthly control zone of January. This suggests the possibility of closing all buy positions made at the beginning of the current week. The option with the formation of a reversal model comes to the fore.
Now, a controversial situation is formed. The pair has been a reversal growth model in the recent timeframe, however, it happened this month, which may impede further growth. In such moments, it is recommended to use the timeframe. The price is 70%. This must be considered when building a trading plan. This must be considered when building a trading plan.
Going beyond the monthly CZ will increase the probability of a downward model forming up to 90%. Therefore, the implementation of an upward intraday upward impulse will not give the necessary advantage in the distance.
An alternative growth model may continue, but opening a long position from current levels is no longer profitable. The best option is to find a false breakdown when updating the weekly high, which will allow you to find good prices to open a short position. It is important to understand that in order to complete a transaction, the formation of an absorption pattern is imperative.
Daily CZ - daily control zone. The area formed by important data from the futures market that change several times a year.
Weekly CZ - weekly control zone. The area formed by marks from important futures market which change several times a year.
Monthly CZ - monthly control zone. The area is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com