– Observe Gap openings in all markets when analysing risk
We cover just the major pairs USD index, USD/EUR, GBP/USD, USD/YEN and GBP/EUR as they are most relevant when longer term reversals materialize. Historically gap openings are nearly always filled in a relatively short period of time.
The risk analysis we do can be done using any stand alone or combination of the most commonly used technical tools calculating momentum of price. We tend to favor, RSI, Stochastic and MACD, whilst not necessarily in this order and we sometimes watch others to confirm the risk profile for each week.