The price of a currency pair on the basis of entry points and volume of open Buy and Sell trades
The indicator of an average entry point characterizes a summed up value of entries 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 value is relatively close to an average entry point, the trend of a given currency pair is weak, and sideways movement prevails. If the value is rather far from the point, there is a probability of a generating trend. The trend is robust in case the value significantly diverges from an average position.
For a trend to reverse, the following condition is to be true: a currency pair price 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 going up, the reverse is indicated by a currency pair price crossing an average entry point line from top downwards;
- If the trend is falling, the reverse is indicated by a currency pair price crossing an average entry point line from top upwards.
In InstaForex MetaTrader terminal this type of statistics is displayed in the form of XXYYYYYYY symbol, where XX has the following meanings:
for EURUSD XX=EU
for GBPUSD XX=GU
for USDCHF XX=UC
for USDJPY XX=UJ
for USDCAD XX=UD
for EURCHF XX=EC
for EURJPY XX=EJ
for GBPCHF XX=GC
for GBPJPY XX=GJ
To display the symbol, right-click the Market Watch window in MetaTrader, the trading platform MetaTrader 4 by InstaForex, and choose “Show all” in the drop-down menu.