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).
EURZAR – on the currency pair formation was taking about bull market. Formation may worry about the traders who have positions in line with the trend. Please note that the formation against the trend with are less effective. In this case, wait for further development of the situation or start to cut losses and reduce the position.
USDPLN – on the currency pair, we see a strong upward trend. For a long time we have not seen any deeper correction. Now, we see at the top of the formation of a bear market coverage. However, do not think that it announces change the trend. Likely to see the ABC correction. Let’s take a closer graph.
On the daily chart is formed head and shoulders formation. If the daily candle closes below the neck is the probability of the ABC correction will increase. If someone want to use a formation to open a short position must be considered for the following areas on the chart and be very careful because the formation against the trend associated with increased risk.