Working outside the monthly CZ of May provides an opportunity to search for favorable prices for the purchase. The "false breakdown" should become the main pattern since it will allow entering the zone of large limit purchase orders. Any sales from the current marks will be unprofitable at a distance since the probability of closing the auction for this month below the level of 1.2689 is 30%.
Purchases are also possible from the current levels if a pattern of a false breakdown of the Friday minimum is formed. This will give the opportunity to work on the market maker level. The first goal will be the maximum of last week.
An alternative model of falling has a probability of 30%, therefore, it should be used only to search for favorable prices for the purchase. Sales of the instrument beyond the average monthly rate at a distance will cause losses even if it is possible to earn small profits in similar situations. The most favorable prices for searching for the pattern of "false breakdown" in opening a long position are at the low of last week.
Daily CZ - daily control zone. The area formed by important data from the futures market, which changes several times a year.
Weekly CZ - weekly control zone. The area formed by marks from the important futures market, which changes 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