The sharp increase in volatility in today's Asian session allowed us to update the annual minimum and go beyond the average moves of the month and week. The subsequent pullback compensated for the drop by 50%. Future plans will depend on the closing of today's trading. If the closing occurs near the opening level, then purchases will come to the fore tomorrow.
The above model will allow you to create a pattern of absorption of the weekly level, which will allow you to hold purchases for the next week.
An alternative option will be developed if the closing of today's trading takes place at the bottom of the morning drop. This will indicate a continuation of the downward movement, and the probability of testing the lower monthly CZ again will increase to 75%.
Daily CZ - daily control zone. A zone formed by important data from the futures market that changes several times a year.
Weekly CZ - weekly control zone. A zone formed by important marks of the futures market that change several times a year.
Monthly CZ - monthly control zone. A zone that reflects the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com