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Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
What Is Price Action Analysis?

Author: Timofey Zuev



Dear Traders,

Today we will talk about price action analysis, an important aspect of technical analysis on Forex. Price Action analyzes price behavior and patterns and can identify almost any market trend.

What is the subject of Price Action analysis, and how does it differ from graphic or indicator analysis?

The graphic analysis is meant to detect certain patterns on the chart that often reflect the interaction of demand and supply (buyers and sellers). For example, a Triangle, often emerging in the way of the trend, is normally a trend continuation pattern. In essence, a trader practicing graphic analysis need only to know this fact (that the Triangle is a trend continuation pattern) to make a decision. This simplifies analysis but creates additional limitations.

If the trader wants to figure out the reasons for the price movement, such an explication will not suffice – they need a more intricate understanding of market mechanisms. This need leads many traders to Price Action analysis.

Some say that Price Action analysis is just the analysis of simple candlestick patterns. Say, Rail or Pin Bar signal about an upcoming reversal, a breakaway of the inner bar signals to buy, etc.

In reality, such a simplistic approach to Price Action analysis will hardly be efficient: if you are eager to understand market processes from scratch, your analysis must become more complicated, not simpler. The number of details and factors that you must pay attention to will increase in a non-linear manner, and making decisions will become harder because the number of conflicting parts of the picture will grow (more signals and scenarios will appear for both buys and sales).

Of course, a trader does not need to see and understand everything: in the end, every market player chooses two or three trading styles and focuses on several types of events, such as breakaways of ranges or the appearance of trends two-three weeks long, etc. However, the understanding of Price Action frees the trader from a fixation on certain patterns – they start to operate principles and become able to find trading opportunities in virtually any market.

On the one hand, information becomes so plentiful that it needs filtration and specialization in a limited number of market situations; on the other hand, the abundance of information lets the trader see more in the market that forms no known-by-all pattern and gives no direct answers.



Sincerely,
RoboForex team
 
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Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
What is Slippage in Forex?

Author: Victor Gryazin



Dear Traders,

In this review, we will discuss such a notion as slippage. This is quite a frequent phenomenon in Forex and other financial markets that influences the opening and closing prices of a position.

What is slippage and how does it appear?

Slippage is the deviation of the execution price of a market order from the market price during the time of execution. To put it simply, it is the difference between the closing/opening quotation of the position and the factual opening/closing price. On the chart, slippage sometimes looks like a small gap on smaller timeframes.

Slippage emerges when the market execution method is used. This is the most advanced and popular contemporary method of trading in Forex. Orders are executed quickly, with a guarantee, without requotes at the current market price, even if it has slipped (changed) a bit during the processing time. Slippage can be either positive or negative.

Positive slippage

A positive slippage means that a position is opened/closed at a slightly better price than in the order. For example, a trader has an open buying position in GBP/USD at the price of 1.2800. The rate of the pair grows by a “pattern” (100 points), and the price reaches 1.2900. The trader sees this price in the order and closes the position. However, thanks to a powerful ascending movement, the price grows a bit more during the order processing time, and the position closes at the price of 1.2901. The slippage amounts to 1 point in the trader’s favor.

Negative slippage

In this case, a position is opened/closed at the price slightly worse than initially ordered. For example, a trader is waiting for weak news in the EU and plans to sell EUR/USD. The news comes out worse than expected, and the pair starts declining fast. The trader sees 1.1850 in the order and decides to sell. However, while the order was being processed, the price went even deeper down due to a strong descending impulse, and the trade opened at 1.1845. The slippage amounts to 5 points against the trader.

Slippage is frequent in trading at market quotations, not only in Forex but also in other financial markets (stock, commodity). As a rule, slippage in the main currency pairs is small (about 1 point in a calm market). Slippage is most critical for scalping strategies that are characterized by a very large number of trades with the goal of several points.



Is the broker to blame for slippage?

Quite often, traders who face negative slippage wonder: Isn’t it the broker’s fault?



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
Unemployment Rate, and How to Use It in Forex

Author: Andrey Goilov



Dear Traders,

As a rule, trading in financial markets is based on tech analysis, expert advisors, and various indicators. Attempts to make a profit on the publication of some important economic news and its analysis stands a bit aside.

One of the strongest indices that can move the market is Non-Farm Payrolls; this index shows the number of workplaces out of the farming sector in the USA. As long as the US dollar is the world’s leading currency, the state of the US economy worries investors and traders, naturally.

Some short time ago, there was a separate category of active traders that were looking forward to the publication of this index because, after the publication, the market could cover hundreds of points in one direction in just a couple of minutes, which was a good opportunity for making a profit. The rest of the week such traders enjoyed themselves, waiting for Friday and NFP.



The unemployment rate: what is it and how does it influence the market?

We may say that employment is the basis of any economy. If workplaces are abundant, more goods get to the market, and the employees get a higher wage. They further spend their revenue on other goods and services, thus increasing demand. However, some say that extremely high or low employment rates might both be harmful to the economy.

If the unemployment rate is high, social tension increases, the share of the middle class shrinks, and so does the real income of the population. If the unemployment rate is too low, employees may lose motivation for working and making high-quality products: there are almost no rivals, seeking the same workplace, hence, no stimulus to become the best. The interests of the employer and the ultimate consumer, who gets a product of mediocre quality, also suffer.

The optimal unemployment rate should be within 3-7% of a country’s working population. Of course, the optimal level might differ from country to country, and the same unemployment rates in two countries are hardly comparable. Anyway, significant fluctuation from the average level may provoke a market movement, which traders will try to use for making a profit.

What does a trader do before the publication of unemployment rate data?



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
How to Trade Cryptocurrencies: a Guide for Beginners

Author: Victor Gryazin



Dear Traders,

In this overview, we will discuss the main issues of trading cryptocurrencies. A cryptocurrency is a digital (virtual) financial asset. Operations with such assets remain safe thanks to various methods of cryptography. Cryptocurrencies are still a rather new but already popular financial instrument.



How to trade cryptocurrencies via a broker?

All the main cryptocurrencies are traded in crypto exchanges, which are modern platforms for buying/selling cryptocurrencies. You can register in a crypto exchange directly and carry out operations with various cryptocurrencies. However, if you plan to use one account for trading cryptocurrencies and other financial instruments (currency pairs, stock indices, oil, gold, etc), you will need to open an account in a broker company.

Apart from the opportunity to trade various assets on one account, a broker provides access to different trading platforms. A modern trading terminal allows using advanced methods of tech analysis, setting up necessary indicators and expert advisors, and controlling risks.

To start trading cryptocurrencies via a broker, you only need to open an account in a broker company with the conditions suitable to you.

How to open an account for trading cryptocurrencies at a broker?

First, register your Personal Member’s Area in a broker company (provide your e-mail and create a password) and get your personal information verified. As a rule, verification requires a scan of a document or two that confirm your identity and dwelling address. The procedure does not take long, normally up to two days.

Then study the types of trading accounts on the company’s website very carefully. The trading conditions of different account types may differ significantly. So, you need to choose an account with the conditions optimal for you and a trading platform. When this is done, open your PMA and deposit the account (there are plenty of ways to do it). Install a trading terminal – and get started.



The conditions of trading cryptocurrencies

The conditions may vary depending on the broker company. Let us have a look at the conditions in RoboForex:
  • Minimal deposit – 10$.
  • CFDs for 26 (the number depends on your account type) popular cryptocurrencies available.
  • 24/7 trading Several trading platforms: MT4, MT5, WebTrader, R Trader.
  • Leverage up to 1:50 Execution type: Market.
  • Execution Floating spread and a fixed commission fee for certain trading volume (on certain accounts).



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
RoboForex is giving away $1,000,000 among its clients and partners



Dear Clients and Partners,

In order to celebrate its 10-year anniversary, RoboForex is starting a global giveaway with a total prize pool of $1,000,000. The promotion starts on October 1st, 2020.

More than 200 prizes worth $1,000,000

will be given away over 8 months
  • 30 winners each month
    The prize pool for each monthly giveaway is $100,000.

  • Increase your chances to win
    Receive up to 3 coupons per month! All coupons that didn’t take part earlier will participate in a Grand Prix.

  • Win up to $20,000 from October to April
    Withdraw your prize from the account right after receiving it or use this money in trading.

  • Grand Prix for $300,000
    In May 2021, all coupons that didn’t take part in the previous 7 months will participate in a giveaway of 30 prizes.

How to participate?

Trade on Prime accounts, earn together with the company as a partner, or become a CopyFX trader – the choice is yours!

Also, you can fulfill the conditions for three different categories and improve your chances to win.



1. Traders with Prime accounts

Trade with the best conditions: spreads from 0 points, commission from 10 USD for 1 million USD of trading volume, leverage up to 1:300.

Conditions for receiving a Coupon:
  • Deposit at least 300 USD to your account.
  • Perform at least 3 lots* of trading operations per month.

    * - Only the positions in Currencies and Metals opened in the current month are taken into account.



2. Partners

Attract clients to the company and receive up to 60% of our revenue.

Conditions for receiving a Coupon:
  • Partner commission at month-end is at least 300 USD.



3. CopyFX Traders

Earn on your CopyFX strategies and maximize your chances to win a prize.

Conditions for receiving a Coupon:
  • Making the Top-30 of the best CopyFX Traders on Prime accounts in the current month.



Join the promotion right now and take part in as many giveaways as possible and increase your chances to win. Good luck!




Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
RoboForex: changes in trading schedule (Columbus Day in the USA)



Dear Clients and Partners,

We’re informing you that due to the Columbus Day in the USA, there will be some changes in the trading schedule*.

MetaTrader 4 / MetaTrader 5 platforms

Trading schedule on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (WTI, Brent)
  • October 12th, 2020 - trading stops at 7:45 PM server time.
  • October 13th, 2020 - trading starts as usual.
Trading schedule on CFDs on US indices (US30Cash, US500Cash, USTECHCash)
  • October 12th, 2020 - trading stops at 7:45 PM server time.
  • October 13th, 2020 - trading starts as usual.
Trading schedule on CFDs on US stocks
  • October 12th, 2020 – no trading.
  • October 13th, 2020 - trading starts as usual.

R Trader platform

Trading schedule on US stocks and ETFs
  • October 12th, 2020 – no trading.
  • October 13th, 2020 - trading starts as usual.
Trading schedule on CFDs on US stocks and ETFs
  • October 12th, 2020 – no trading.
  • October 13th, 2020 - trading starts as usual.
Trading schedule on CFDs on US indices (US500, US30, NAS100)
  • October 12th, 2020 – no trading.
  • October 13th, 2020 - trading starts as usual.
Trading schedule on Metals (XAUUSD, XAGUSD) and CFDs on Crude Oil (BRENT.oil, WTI.oil)
  • October 12th, 2020 - trading stops at 7:45 PM server time.
  • October 13th, 2020 - trading starts as usual.

cTrader platform

Trading schedule on Metals (XAUUSD, XAGUSD)
  • October 12th, 2020 - trading stops at 7:45 PM server time.
  • October 13th, 2020 - trading starts as usual.
Please, take into account these changes in schedule when planning your trading activity.

* – This schedule is for informational purposes only and may be changed.

Sincerely,
RoboForex team
 
Last edited:
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
Trading with Force Index of Alexander Elder

Author: Victor Gryazin



Dear Clients and Partners,

In this overview, we will discuss the use of the Force Index. This indicator from the group of oscillators was designed and first applied to trading by a famous market expert Alexander Elder.

Description of the Force Index

The Force Index is an irregular oscillator that helps to estimate who is dominating the market – the bulls or the bears. As I have said, the indicator was designed by a famous trader, author, and the creator of the Elder’s Triple Screens strategy Alexander Elder.



The main task of the indicator is to estimate the dynamics of the price and show who is stronger in the market – the bulls or the bears. The indicator uses the following parameters:

  • the direction of the price movement.
  • the price change during a certain period.
  • trade volume.

The Force Index gives us an idea of the market direction. If the line of the indicator is above 0, demonstrating another high, this means an uptrend and the dominance of the bulls. If the Force Index drops below zero, forming local lows, the market is in a downtrend, and the bears are ruling.

The Force Index is displayed in a separate window under the price chart and consists of one main line and the center zero level. Elder recommends D2 and D13 for short-term and medium-term trading, respectively. The Force Index is included in most trading platforms, MetaTrader 4 and MetaTrader 5 among them.



Force Index Indicator

The Force Index calculation and setup

To add the Force Index to the price chart of a financial instrument in MetaTrader 4 or MetaTrader 5, open it via the Main Menu: Insert – Indicators – Oscillators – Force Index.

Elder recommended enhancing the results of the Force Index by averaging its values with an Exponential Moving Average (EMA).



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
Emotional Intelligence: What is It and Why It is Important for Traders

Author: Timofey Zuev



Dear Clients and Partners,

Speaking about psychological competences, important for a trader, I would first and foremost single out emotional intelligence. Under emotional intelligence, I understand the ability to distinguish and name your own and other people’s emotional states.

Why is emotional intelligence important for traders?

I suppose that many traders would like to “get rid of emotions” to avoid losses that emotions often cause. However, such ridding would make a person unable to make decisions. An ability to find your way in complicated social situations that are influenced by the “psychology of a crowd” (and a financial market is exactly such a situation) presumes not only the skill to single out patterns (graphic, statistical) from a mass of data but also to feel correctly the market sentiment. To a larger part, market sentiment is the information unavailable to algorithms (though there are attempts to create algorithms that would estimate market sentiment).

Putting things very simply, we might say that the price impulse, spurting from a range and supported by professional demand/supply, will provoke the stereotypical reaction of traders who will try to sell at “inflated” prices. As a result, the trend will further be moved mostly by the emotional reaction of short-term traders who would be closing their positions. A high level of emotional intelligence will let the trader detect such situations and react accordingly.

For sure, the main role of emotional intelligence is to detect your own emotions. If a person (trader) experiences some emotional state that they cannot recognize, this might distort the perception of the market and push out some important information. Simply speaking, the trader will start looking for reasons to make a trade (and find them). In contrast to a simple reactive action, when the trader moves the Stop Loss or “enjoys revenge” on the market, the process here is much more complicated and hard to detect. A trader with distorted perception of reality will be sure that their analysis has been objective, accounting for all necessary factors; alas, their attention will be focused very selectively.

That is why emotional intelligence is so important: it allows to realize your own emotional states in time and avoid distortions.



Main perceptual distortions in the market
  1. The urge to trade in an inactive market (the trader tries to enter when it would be wiser to just wait).
  2. The desire to go against a breakaway (escaping the range, the price will seem unlawfully “high” or “low”, so the trader will try to open a position, justifying it by “analysis”, drawing new lines and “channels”).
  3. Avoiding trades and risks in times of extremely low volatility (usually before a breakaway).
  4. Decreasing activity after a losing series.
  5. Increasing activity after a profitable series..
I intentionally skip such types of behavior as increasing the lot significantly to win back your losses or make a certain amount of profit. We speak just about mental distortions, not the lack of self-control. When emotions exceed the “pain threshold” and rule one’s behavior, another mechanism that we are going to touch upon comes to the scene.

Most “bad” trades appear when the trader squeezes their perception into a narrow framework and becomes blind to important events and details.



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
RoboForex is named the “Most Transparent Asian Forex Broker”




Dear Clients and Partners,

RoboForex has received the “Most Transparent Asian Forex Broker” award at the Global Forex Awards 2020 – Retail. Winners were announced on June 24th, 2020, in London.


Thank you for choosing us, investing together with us, and voting for us. We, in our turn, strive for constant improvement and continue providing our clients from all over the world with the most transparent trading conditions, cutting-edge platforms, quality analytics, 24/7 support, various bonus programs, and many other things.


Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
RoboForex: changes in trading schedule (revert to Standard Time and Unity Day)



Dear Clients and Partners,

We’re informing you that on October 25th, 2020, the countries of the European Union will revert from Daylight Saving time to Standard time. In the USA, the same will happen on November 1st, 2020. As a result, the trading schedule is to be changed in the following way*.

In addition to that, due to the public holiday in Russia, Unity Day, USDRUB will be traded according to the changed schedule on November 4th, 2020.

MetaTrader 4 / MetaTrader 5 platforms

Trading schedule on Metals (XAUUSD, XAGUSD)
  • From October 26th to November 1st, 2020, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 12:05 AM - 10:59 PM.
  • Starting November 2nd, 2020, Metals will be available for trading within the operating range of the contract specifications.
Trading schedule on CFDs on US indices
  • From October 26th to November 1st, 2020, trading on CFDs on US indices will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 02:00 AM - 10:15 PM.
  • Starting November 2nd, 2020, CFDs on indices will be available for trading within the operating range of the contract specifications.
Trading schedule on CFDs on oil (Brent and WTI)
  • From October 26th to November 1st, 2020, trading on CFDs on oil will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 02:00 AM - 10:15 PM.
  • Starting November 2nd, 2020, CFDs on oil will be available for trading within the operating range of the contract specifications.
Trading schedule on CFDs on American stocks
  • From October 26th to November 1st, 2020, trading on CFDs on American stocks will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 03:31 PM - 09:59 PM.
  • Starting November 2nd, 2020, CFDs on American stocks will be available for trading within the operating range of the contract specifications..
Trading schedule on USDRUB
  • Starting October 26th, 2020, the USDRUB currency pair will be traded according to a new schedule.
    Trading session (server time): 09:00 AM - 5:30 PM.
  • November 4th, 2020 - no trading.
  • November 5th, 2020 - trading starts as usual.

R Trader platform

Trading schedule on US stocks, CFDs on US stocks, ETFs, and CFDs on ETFs
  • Starting October 26th, 2020, trading on the above-mentioned instruments will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 03:31 PM - 09:59 PM.
  • Starting November 2nd, 2020, CFDs on US indices will be available for trading within the operating range of the contract specifications.
Trading schedule on CFDs on US indices (US30, US500, NAS100)
  • Starting October 26th, 2020, trading on CFDs on US indices will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 09:00 AM - 10:00 PM.
  • Starting November 2nd, 2020, CFDs on US indices will be available for trading within the operating range of the contract specifications.
Trading schedule on CFD on Metals (XAUUSD, XAGUSD)
  • From October 26th to November 1st, 2020, trading on CFDs on Metals will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 12:05 AM - 10:59 PM.
  • Starting November 2nd, 2020, CFDs on Metals will be available for trading within the operating range of the contract specifications.
Trading schedule on CFD on oil (BRENT.oil and WTI.oil)
  • From October 26th to November 1st, 2020, trading on CFDs on oil will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 02:00 AM - 10:15 PM.
  • Starting November 2nd, 2020, CFDs on oil will be available for trading within the operating range of the contract specifications.

cTrader platform

Trading schedule on CFD on Metals (XAUUSD, XAGUSD)
  • From October 26th to November 1st, 2020, trading on CFDs on Metals will be opened and closed 1 hour earlier than usual (server time).
    Trading session (server time): 12:05 AM - 10:59 PM.
  • Starting November 2nd, 2020, CFDs on Metals will be available for trading within the operating range of the contract specifications.
Trading schedule on USDRUB
  • Starting October 26th, 2020, the USDRUB currency pair will be traded according to a new schedule.
    Trading session (server time):09:00 AM - 5:30 PM.
  • November 4th, 2020 - no trading.
  • November 5th, 2020 - trading starts as usual.
Please, note that on October 30th, 2020, trading on all instruments in all platforms will be closed at 11:00 PM server time.

Please, take into account these changes in schedule when planning your trading activity.

* – This schedule is for informational purposes only and may be changed.

Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
How to Make Money on Cryptocurrencies?

Author: Andrey Goilov



Dear Clients and Partners,

The crypto market has changed a lot. A couple of years ago, we used to enjoy a stable bullish trend; you could buy an asset and forget about it but for taking the profit. However, currently, you have to watch the market all the time; the “buy and hold” option must be becoming the past.

While the Bitcoin is somehow winning back its positions, other assets, such as the Ethereum, Litecoin, XRP, Bitcoin Cash, has not yet managed to begin a stable uptrend. In such circumstances, we have to use tech analysis of charts, buy and close positions more and more frequently.

There are several quite different ways of making money on cryptocurrencies, however, many are still sure that the best way is to trade digital assets.

Trading at the crypto exchange



What is a crypto exchange?

Crypto exchange is a platform where you can exchange one cryptocurrency for another. Also, you can trade an asset for a certain currency based on the actual price of the cryptocurrency. All in all, those are like normal exchanges only that you trade cryptocurrencies instead of stocks or indices. Here, traders also try to make money on the fluctuations of the exchange rates of cryptocurrencies.

Which crypto exchanges are there?

Presently, there are several types of crypto exchanges. All of them have their characteristic features.
  • Traditional trading platforms. Here, exchange players make operations by the current market prices, while the exchange acts as a broker, charging market players a commission fee for each operation.

  • Direct access trading. On such exchanges, market players exchange assets directly. However, the prices are not market: buyers and sellers set their prices themselves. The exchange, in its turn, charges a commission fee for operations.

  • Crypto exchanges. Such exchanges allow trading a lot of instruments. All operations happen between the buyer, seller, and the exchange. The latter charges commission fees for all operations.

Centralized and decentralized exchanges

Many users are not quite fond of centralized exchanges. Vitalik Buterin has frequently voiced his support to decentralized exchanges while the centralized approach is generally against the crypto philosophy. On the other hand, centralized exchanges offer high liquidity, thanks to which the speed of operation will be much higher.

However, such platforms have their weak points, such as security. They suffer from hacker attacks rather often, imposing large losses on users. This made centralized exchanges really serious about the identification of users.

Decentralized exchanges do not require personal information or identification. Liquidity on such platforms is much lower; they also lack common facilities of classic trading, such as leverage, limit orders, or a comfortable trading platform.



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
NASDAQ-100: How to Invest or Trade the Index

Author: Maks Artemov



Dear Clients and Partners,

In this overview, we will get acquainted with a popular stock index NASDAQ-100. This is the index of high-tech companies that is one of the top-three US indices.

History of NASDAQ stock exchange

The NASDAQ (National Association of Securities Dealers Automated Quotation) stock exchange is one of the leading US exchanges; it was founded in 1971 and specializes in the stocks of high-tech companies. The name of the exchange is the abbreviation of the name of a quotation system that was used for identifying the quotations of stocks and other calculations were carried out.

The exchange was “born” as early as 1939, right after the enactment of a law that made all brokers who were out of functioning exchanges, unite in self-regulated institutions. This is how the NASD (National Association of Securities Dealers) was created. It united the participants of the US OTC stock market.

Nowadays, NASDAQ is one of the largest world exchanges. It specializes in operations with the stocks of high-tech and software development companies. NASDAQ lists the stocks of more than 4,000 companies; also, it calculates stock indices for different sectors of the economy.

Popular NASDAQ indices

Based on the stocks traded in NASDAQ, a whole range of stock indices in different sectors of the economy is calculated, such as NASDAQ Composite, NASDAQ Bank Index, NASDAQ Computer, NASDAQ -100, NASDAQ Biotechnology, and more. Let us discuss three popular indices:

NASDAQ Composite

This is the very first index that appeared in NASDAQ: it is based on the growth of all companies listed in the exchange. NASDAQ Composite is calculated by the method of weighted market capitalization. This means that the largest companies traded in the exchange influence the final result more than others.

This might be the main composite index of NASDAQ. The popularity of the index was somewhat deteriorated by the so-called “dotcom collapse” - the swift falling of the computer and IT market in 2000-2001. As a result, the index slumped and could not restore for a long time, so that NASDAQ-100 became the most attractive index.

NASDAQ-100

This index that appeared in 1985 is a modified weighted index tracking more than 100 largest non-financial companies of NASDAQ. It is often interpreted as a “tech” index because of the presence of such companies in it.

NASDAQ-100 includes such giants as Amazon, Apple, Tesla, Alphabet (Google), Facebook, Cisco, Intel, Microsoft, Adobe, Netflix. Almost all the companies in the index feature innovations, speedy growth, global attractiveness, and liquidity. All this made NASDAQ-100 a kind of a “barometer” of the high-tech sector and a popular financial instrument .

NASDAQ Biotechnology

This is a younger but still popular index that includes the stocks of biotech and pharmaceutical companies in NASDAQ. Currently, the index includes stocks of over 200 companies. Being a weighted index in terms of capitalization, NASDAQ Biotechnology has been estimating the situation in US medicine and healthcare since 1993.

Trading strategies in NASDAQ-100

As noted above, NASDAQ-100 is one of the largest world stock indices, popular among traders and investors. It can be traded by various financial instruments: futures, special funds, CFDs – depending on your broker. Have a look at the main strategies:

Long-term trading – investing

This must be the most popular strategy of trading NASDAQ-100. The main principle is as follows: wait for a correction and buy the index at the beginning of a new wave of growth as we expect it to renew the highs. This is quite a simple strategy but you have to be patient to let your profit grow to the desired level.

For example, you could by NASDAQ-100 in March this year, at the falling of stock indices provoked by the coronavirus epidemics. Winding up the decline, the index reversed upwards and in six months renewed its all-time high, almost doubling its quotation from the year’s lows.

Of course, we should remember that the growth was rather abnormal, explained by a huge money inflow from the Fed. In normal circumstances, you have to wait longer.



Medium- and short-term trading

As a rule, such trading requires leverage. Short-term trading presumes holding a position for one or several days; medium-term trading – from a day to several months. Swing-trading, day-trading, scalping – all these types of trading can be used for NASDAQ-100.

Apart from stock market news, your decisions should be based on tech analysis. Support/resistance levels and lines, price patterns, candlestick combinations, Price Action patterns, indicators – all these means help find good trading opportunities.



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
Trading with Ichimoku and Awesome Oscillator

Author: Andrey Goilov



Dear Clients and Partners,

Almost any trading strategy suggests using several indicators for finding market entry signals. In most cases, if a trend indicator is used, we supplement it with an oscillator to confirm the first signal and show the direction of the general trend.

Our strategy uses the Ichimoku and Awesome Oscillator indicators. Ichimoku Kinko Hyo is an excellent trend indicator that perfectly shows the current market trend. Awesome Oscillator demonstrates the deviation of the price from the average value. It is quite similar to the MACD indicator that demonstrates the divergence of the price chart and the indicator chart.

The strategy will give signals at trend reversals. According to authors and traders, such signals can be found on any currency pairs, which means the strategy suits both majors and less popular pairs. For market entry, we use H1, but longer timeframes are also worth trying.

Setting up the strategy Ichimoku + Awesome

As I said above, the strategy requires the use of two indicators only, which makes it suitable even for traders with minimum expertise. So, we need to add two indicators with standard parameters to the chart:

Ichimoku Kinko Hyo. As we have figured out, it shows the actual market trend. Normally, if the prices rest above the Ichimoku Cloud, the trend is bullish (ascending). Conversely, if the price has broken the Cloud away and turned out under it, the trend on the chart is descending. Also, the price may trade inside the Cloud, in which situation, traders speak of a flat and wait for the price to escape the Cloud to catch the beginning of a new wave.



Awesome Oscillator — is an indicator that gives good signals in a flat. A strong signal is a divergence of the p[rice and indicator charts in the direction of the main trend. The color of the histogram and its position in relation to zero will also be important.



How to open a buying trade?

To open a buying position, the following is important:

The closing price of the candlestick broke through the Senkou Span A line from below, which means the candlestick closed above the upper border of the Ichimoku Cloud.



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
How To Become a Successful Trader: 10 Clues

Author: Victor Gryazin



Dear Clients and Partners,

Who is a “successful trader”? They are a trader who has learned to make a stable profit in financial markets. In this article, we will give 10 clues that will help beginners to become and feel like that successful trader. Let us get started.

Decide if trading suits you



First and foremost, you need to make sure that the job of a trader is good for you.

Trading is high-risk speculations in financial markets. According to statistics, only 10% of those who have started trading make any serious success.

A trader spends a lot of time analyzing news and charts, looking for trading opportunities, following trades. Analytical mind and tranquility, as well as the ability to take possible losses calmly, are essential here.

For example, if you are choleric with a bursting temper and a love for traveling, you will have a lot of trouble sitting monotonously at the PC all day and analyzing charts. Hence, make your own list of criteria for your perfect job and check if trading meets your requirements.

Start from your trading education



As with any job, in trading, you have to start with thorough learning. Make sure your learning stuff is of high quality because the Internet is full of questionable content.

To learn independently, you may use educational videos or courses by experts from reliable brokers or investment companies, books by famous and successful traders, recommendations of professional traders you know personally.

To my mind, the fastest and most efficient way to learn to trade is to seek the assistance of an experienced working trader who makes real money. They can show you how to use the rules and techniques of a reliable trading strategy they use. You just need to make sure that your teacher does really trade well and not just sell courses. Check that your trader uploads trades online, or provides public monitoring of their trading account, or frequently shows good results in traders’ competitions.



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
A possible surge in volatility due to the presidential elections in the USA



Dear Clients and Partners,

We’re informing you that due to the upcoming presidential elections in the USA on November 3rd, financial markets are likely to be subject to a significant surge in volatility and a drop in liquidity during the next week, which may lead to a significant widening of spreads by our liquidity providers.

During this period, the margin requirements (leverage) for open and new positions for all types of accounts will remain unchanged. Please, take into account this information when planning your trading activity and modify your open positions in advance.

We’d like to remind you that in the interest of protecting clients’ funds, RoboForex has the Negative Balance Protection program, whereby the company brings the balance back to 0 should it become negative during the trading process.

Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
How to Invest in S&P 500?

Author: Maks Artemov



Dear Clients and Partners,

In this article, we will discuss trading S&P 500. In the exchange, this index is trading under the ticker US500; today, it can be found in many popular trading terminals.

What is S&P500?

S&P 500 was created by Standard and Poor’s (currently S&P Global) on March 4th, 1957.

Earlier, another index called Dow Jones Industrial Average Index used to be popular. It included the 30 largest industrial companies. Also, other indices were there; however, they covered only a small group of companies, hence, did not represent the whole picture of market moods.Standard and Poor’s went their own way and decided to create an index that would show the market situation on the whole and not just the state of things in the industrial sector. This is how the S&P 500 appeared.

The new index was comprised of 500 large companies with the biggest capitalization from various sectors. However, the number of companies and the exact contents of the index remains prone to change.

What are the companies in the S&P 500?

The index includes the 500 largest companies traded in the US stock market. To be listed in the index, a company must comply with the following requirements:
  • capitalization no less than 6 billion USD.
  • registered in the USA.
  • stock liquidity (the number of stocks traded) no less than 250,000 per month.
  • no less than 50% of the stocks available for free trade.
  • profitability during the four last months of the accounting period.
The list of companies is revised every quarter. If a company turns out to be faulty in a way, it is replaced by another suitable company. Usually, the list loses companies that start generating losses in the accounting period or the liquidity of which drops.

The leaders of the index are currently the giants of the IT and banking sectors, such as:
  • Apple Inc (NASDAQ: AAPL).
  • Microsoft Corporation (NASDAQ: MSFT).
  • Amazon.com Inc (NASDAQ: AMZN).
  • Facebook Inc (NASDAQ: FB).
  • JPMorgan Chase & Co (NYSE: JPM).
IT companies take over 27% of the index, healthcare companies – 14%; the shares of the remaining spheres are not that significant, though they comprise more than 50% of the index, taken together.

S&P 500 is calculated based on weighted capitalization, which means companies that have larger capitalization have more influence.

How to invest in the S&P 500?

S&P 500 is good for not only intraday trading but medium-term investments as well. Thanks to many market players being interested, the index demonstrates high volatility and liquidity during the trading session. Also, you can go on trading after the trading session ends, though liquidity will shrink.

The only limitation for future investors is the high price of the index, which entails the use of leverage or the increase of the deposit.



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
How to Keep a Trading Diary? Practical Tips

Author: Victor Gryazin



Dear Clients and Partners,

What for do we keep a trading diary?

The Internet is full of books and articles on trading but not all of them will be useful. The most popular ones tell a trader what they want to hear instead of describing the true market reality. Books on trading often focus on appealing setups, leaving behind possible mistakes in the fulfilment, search, and realization of trading ideas.

That is why I recommend all traders, especially beginners, to start a trading diary as early as possible. It will become your best book on trading. It will reflect the market as you see it and keep track of all your actions and their results.

Even experienced traders often keep trading diaries diligently because they know that it is one of the most useful and working instruments: it helps you see your possible inefficacy right at the start and correct it timely.

A trading diary helps to not only prepare trades well but also analyze the results of trading. In losing periods, you can scrutinize the diary and detect the reasons for your drawdowns. Among such reasons, you can see emotions that make you violate your trading rules or errors of your trading system that need correction.

The process of keeping a trading diary consists of three parts:
  • A description of your trading plan.
  • Statistics.
  • An introspection log.
Part 1: Description of your trading plan



Your trading plan must describe your detailed trading plan, your analysis; it helps you write down on paper (or in a file) your ideas of the market and your own trading. On the whole, the analysis of and your opinion on the market as they are do not make your trading successful; however, your current opinions define your area for finding ideas.



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
Ho to Trade Bryce Gilmore’s Graphic Patterns

Author: Andrey Goilov



Dear Clients and Partners,

Nowadays, there are plenty of various graphic patterns for trading. Some are classical, some are modernized. Every trader tries to supplement graphic patterns with their own secret features to make them more efficient.

For example, previously, investors used to trade the Head and Shoulders pattern at the breakaway of the “neck” only; however, these days, many traders do not wait for the pattern to be complete but trade while it is still forming. Thus, they can enter the market with a much shorter Stop Loss.

Bryce Gilmore is one of the traders who added their rules to and found interesting mechanisms in the work of classic trading patterns. Many patterns from his books coincide with the views of other graphic traders.

On the one hand, there is nothing complicated to his novelties; on the other hand, one has to spend a lot of time to come to such conclusions on their own. However, with all the books and articles, a beginner only needs to read and reread them thoroughly and apply the knowledge to the current market.

All Bryce Gilmore’s patterns can be conditionally divided into two groups (like all other graphic patterns): those of trend continuation and those of trend reversal. In this article, we will discuss the main price structures only. The author has plenty of patterns in store but you do not need to know all of them to trade successfully: you can choose a couple and learn how to use them properly in compliance with your capital management rules.

Trend reversal patterns

The Head and Shoulders pattern

Bryce Gilmore insists on calling this pattern like this, and we cannot deny that it is very similar to the classical pattern.

However, here, there is a large difference between the classical and original approaches. In normal tech analysis, few traders speak about selling from exactly the right “shoulder” of the pattern. As for Gilmore, he notes that if the “shoulders” are more or less equal, we can open a selling or buying position depending on where the pattern is aimed.



Moreover, he neglects the slope of the “neck” completely: even if the line is heading down, we can still open a buying position provided that the “shoulders” are equal.



I will remind you that in classical tech analysis, the “neck” must be aimed in the direction of the previous trend. If otherwise, the pattern is not a Head and Shoulders but a Wolfe’s Wave. Some time ago, my colleagues and I singled out this feature and were quite surprised to find a similar idea in the book of another author.



Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
How to Analyze Financial Reports of Companies by IFRS?

Author: Vadim Kovalenko



Dear Clients and Partners,

In this article, we will discuss a step-by-step algorithm for analyzing the reports of international public companies so that later, you will analyze them yourself. During the report period, a normal person is overwhelmed by recommendations and advice. However, to form a correct and independent opinion, you have to work with the primary source.

Where to start from?

Start the analysis from the website of the company: you will find the reports in the section for investors. See an example in the screenshot below:



Then a section will open, from where you will be able to download all the reports of the company. Here, we see yearly (10-K form) and quarterly (10-Q form) reports. We are more interested in the 10-K. An example below:



If you are not keen on looking for all those sections on the company’s website, just go to the website of the SEC regulator - and download the documents from there. In the search form, enter the ticker of the company:





Sincerely,
RoboForex team
 
Elena RF

Elena RF

Guest
Aug 6, 2019
161
Points
107
How to Trade Renko Charts: Main Strategies

Author: Victor Gryazin



Dear Clients and Partners,

In this article, we will discuss a strategy using the Renko charts. This is a specific way of representing the price chart that highlights the size of the movement, regardless of time.

What is a Renko chart?

Renko candlestick charts are coming from Japan, where they first appeared and were called "renga", which means "a brick". Such candlesticks look like small rectangle boxes/bricks composing the price chart.

Renko candlesticks are not bound to timeframes, they are focused on price changes solely. When the market is active, there are more Renko candlesticks on the chart; when the quotations are in a flat, and volatility drops, there are less of them.

A new candlestick appears only when the price exceeds a set threshold. For example, if the set size of a Renko candlestick is 10 standard points, and the price has grown by 20, there will appear 2 white "bricks", 10 points each.

If the price is falling, the candlesticks on the chart turn black, each of them also reflects a decrease of 10 points. Thus, a Renko chart shows the general direction of the price movement, smoothing out minor fluctuations.



The advantages and drawbacks of Renko charts

Renko chart was created for making the main market trend easier to perceive. As well as other methods of price representation, Renko candlesticks have their advantages and drawbacks.

The advantages would be:
  • A clear averaged representation of the trend.
  • Filtering of meaningless noises on the chart.
  • Smoother work of indicators and advisors.
  • The chart shows the places of probable trend reversals.
  • The chart represents key support and resistance levels.
Installing and setting up Renko chart in MT4

To install the Renko charts to MT 4 trading terminal, first of all, download the files of a special expert advisor RenkoExpertAdvisor via a link at the end of this article. Copy the files to the folder Experts.

In the Main Menu, open File/Open Data Catalog/MQL 4/Experts. Copy the files of the EA into the folder, then restart the terminal.

As a result, RenkoExpertAdvisor will appear in the Navigate window. To add it to the chart of the chosen instrument, left-click and drag it to the necessary window. Then choose Service on the instrument board, click Settings, then proceed to Expert Advisors. Tick Automatic Trade and Import DLL.

After choosing the settings, in the upper right corner of the chart, you will see a smiling face and the name RenkoExpertAdvisor. Moreover, in the upper left corner, you will see a text, telling you to open a new Renko chart in the autonomous regime. To do it, choose File/Open Autonomously. You will see a window with a list of autonomous charts. Choose a chart with the parameters specified in the upper left corner of the window with the expert advisor. Open it with a double left click of the mouse. A window will appear with a Renko chart that will be constantly renewed. Now you can add indicators to Renko charts and start trading.





Sincerely,
RoboForex team
 

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