Beside it is a table presenting the amount of money(in PLN) that we can earn after open preferred position(green-long, red short) in the appropriate currency pair (in the broker XM ), which will be continuously updated (click to enlarge image).
EURAUD – in the chart can be seen weekly Pin Bar, which apeared a week ago. Today, you can see the candles, which closed at around half of Pin Bar. Part traders already opened a short position below or integral to the middle of the candle with a stop loss above maximum. However, look at the chart from a different perspective and reassess the chance to earn money from such a position. The first thing you’ll notice is the place where the candle was Pin Bar. At first glance, you can see the resistance / support. However, as it look over it can also easily be noted that the level (in the near history) was breaking down 4 times and it is not significant. Another factor which is worth noting that the strong growth momentum after the break lower hole. Worth paying attention to second impulse upward candles, it is a candle (marubozu), which indicates that the institutions were buying the whole week lower price levels. In such situations, a good option is to look at the chart on the higher time interval.
On the chart can be seen monthly downward Pin Bar, which was created after the test resistance. He did not have re-test 50% of the candle and realized within 1/1 movement. Quite often, after the completion of such a movement as the price goes back to levels above the closure of the candle, make a test level and then continues the long-term trend. More details about the long-term trend for the currency pair you read this.
NZDUSD – for the currency pair can be seen to have been defeated important support. We can also see that now takes corrective movement. A good place to join the trend would be to test the resistance level. The additional arguments to open a short position in this space will be a trend line, the abolition of 61.8% FIBO and ribbon medium. Also, do not open position before the appearance of signal on a smaller interval of time. The downside of such items will be negative swap points.