On Friday, the formation of the reversal pattern of takeover occurred after the pair was fixed above NKZ 1/2 1.3097-1.3085. The priority direction of trade at the beginning of this week is growth.
Purchases come to the fore and the important point is to find the best prices to open a long position.The first support, where it is necessary to establish a limit order, is NKZ 1/4 1.3075-1.3069. The ratio of risk to profit when making purchases from the limits of the specified zone will be 1 to 4, which will give a significant advantage over the distance. The goal of the upward movement is the weekly short-term order of 1.3239-1.3213, where fixations of the long position are required partial or complete.
An important point in making a trading decision is the probability of updating the nearest extreme. The probability of updating today's peak is 70%, which determines the transactions that will be profitable at the beginning of this week.
A less profitable model for trading will be the growth from the current levels. This will not allow you to get such a favorable purchase price today, but any decline can also be used to open a long position. It is necessary to understand, the closer the price is to the weekly KZ, however, purchases become profitable. This indicates the need to consider any pattern in the direction of growth to make a trading decision.
Daytime CP is the day control area. The zone formed by important data from the futures market, which change several times a year.
Weekly CP is the weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CP is the monthly control zone. The zone, which is a reflection of the average volatility over the last year.
The material has been provided by InstaForex Company - www.instaforex.com