Settlement level of a currency pair on the basis of entry points and volume open buy and sell trades
The indicator of an average entry point characterizes a summed-up value of entry on all positions of traders on the market. An average entry point is not directed towards buying or selling, since it is calculated on the basis of all currently open positions, including both long and short ones.
If the rate value is relatively close to an average entry point, the trend for a given currency pair is weak and sideways movement prevails. If the rate value is rather far from the point, there is a probability of a generating trend. The trend is robust in case the rate value significantly diverges from an average position.
For a trend to reverse, the following condition is to be true: a currency pair rate is to be crossed by an average position in the direction opposite to the one at the moment of the trend being active:
- If the trend is growing the reverse is indicated by a currency pair rate crossing an average entry point line from top downward;
- If the trend is falling the reverse is indicated by a currency pair rate crossing an average entry point line from top upward.
In MetaTrader Terminal of InstaForex this type of statistics is available in the form of XXYYYYYYY symbol, where XX has the following meanings:
