Work outside the zone of the average course of the week involves finding favorable prices for the purchase of an instrument. The upward movement will be corrective, but the probability of closing today's trading within the range of more than 70%, so buying through the pattern of a "false breakout" will be profitable at a distance.
The downward movement is a strong impulse, so the probability of updating the monthly minimum remains high. The breakdown of the structure should be considered through absorption at the daily level.
An alternative model will be developed if the pair continues the downward movement, and the close of the trading week will occur below the current levels. Sales are no longer profitable now, so it is better to abandon them; however, a recurring correctional movement, at the beginning of next week, will allow you to enter a short position again.
Daily CZ - daily control zone. The area formed by important data from the futures market, which change several times a year.
Weekly CZ - weekly control zone. The zone formed by the important marks of the futures market, which change several times a year.
Monthly CZ - monthly control zone. The zone, which is a reflection of the average volatility over the past year.
The material has been provided by InstaForex Company - www.instaforex.com