RBFX Support Posted February 21, 2023 Author Share Posted February 21, 2023 How To Use the Rate of Change (ROC) Indicator in Trading Author : Victor Gryazin Dear Clients and Partners, In this material, we will introduce you to the Rate of Change trading indicator. We will consider the peculiarities of its work, the formula for its calculation, and the signals that can be used in trading. What the Rate of Change indicator shows Rate of Change is a technical indicator showing the magnitude and speed of price change over a specific period. It compares the quotation of the current time period with the past ones, indicating the percentage of change in the price. The obtained data helps to evaluate the current dynamics of the selected financial instrument. Rate of Change is like the popular Momentum indicator. ROC helps to determine what kind of trend the market is currently in and whether it is accelerating or slowing down. The greater the growth of the indicator, the stronger the optimism of the market crowd and the higher the probability that prices will continue to rise. A drop in the indicator value indicates an increase in pessimism in the market and the likelihood that prices will continue to fall. Rate of Change is plotted in a separate window below the price chart and is represented as one main calculation line and a horizontal 0 level. The ROC line confirms (or does not confirm) the breakdown and rebounds from the support and resistance lines on the price chart, and helps determine the direction of the current market trend: A rising ROC above 0 confirms that an upward trend is in forceA below 0 and falling ROC confirms the presence of an active downtrend The formula for calculating the Rate of Change ROC = (Close(i) - Close(i-n)) / Close(i-n) * 100% Where: Close(i) - the last closing price.Close(i-n) - closing price of n periods ago.n - is the period of the indicator. This indicator in its classic version is used with a default period of twelve. It is always possible to experiment, evaluate its work with other periods on historical data, and choose the most suitable one for your trading. Installing Rate of Change in the trading terminal Rate of Change is not a pre-installed indicator, so to use it in the popular MetaTrader 4 terminal, you need to download and install the indicator file. The file can be found on the Internet or on the website of MetaQuotes Ltd. To install the indicator in the MetaTrader 4 main menu, go to File, select Open Data Folder → MQL4 → Indicators, and copy the file to this folder. After restarting the terminal, ROC will be installed in the Custom Indicators folder. Next, install it on the chart of the desired instrument through the main menu of the programme: Insert → Indicators → Custom → ROC. It is usually used with default settings (Rperiod=12), you can customise the colour and style of the main line. Rate of Change trading signals Rate of Change is not a pre-installed indicator, so to use it in the popular MetaTrader 4 terminal, you need to download and install the indicator file. The file can be found on the Internet or on the website of MetaQuotes Ltd. To install the indicator in the MetaTrader 4 main menu, go to File, select Open Data Folder → MQL4 → Indicators, and copy the file to this folder. After restarting the terminal, ROC will be installed in the Custom Indicators folder. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted February 23, 2023 Author Share Posted February 23, 2023 How to Choose a Currency Pair for Trading in Forex? Author : Victor Gryazin Dear Clients and Partners, A beginner trader often asks themselves: which currency pair should they choose for trading? In this review, I will address the most popular currency pairs and enumerate the criteria for choosing the most suitable ones. What is a currency pair? A currency pair is the quotation of two different currencies that constitutes a currency rate and acts as an object of operations in Forex. The standard view of a currency pair is: Base currency/Quote currency A trade operation means that the trader sells or buys the base currency against the quote currency. The base currency is the one on the left – it is the currency that you sell/buy. The quote currency is the one to the right – it expresses the price of the base currency. For example, look at the EUR/USD (Euro vs US Dollar) currency pair: EUR is the euro, base currencyUSD is the American dollar, quote currencyThe current exchange rate of EUR/USD is 1.1270. which means 1 euro costs 1.1270 US dollars. Forex is the world's largest financial market, displaying the current dynamics of global trade. It features a huge number of currency pairs – from famous to exotic ones. The most popular currency pairs which constitute the biggest volume of world trade are called major pairs. They are most often used for trading. The characteristics of major currency pairs Major currency pairs in Forex and the pairs that consist of the most popular currencies of the world economy. Presently, such currencies are the USD, EUR, JPY, CHF, GBP, NZD, AUD, CAD. It would be logical to add the CNH, or the Chinese yuan, here, but the rate of this currency is controlled by the Central Bank of China, so the CNH is not traded that actively. EUR/USD is the euro vs the US dollar. It is the most popular currency pair. The trade volume of the currency pair is maximal here, while the spread is small and volatility is average. It is most active during the European and American sessions and reacts vividly on the news in the Eurozone.USD/CHF is the US dollar vs the Swiss franc. Most often, it goes counter the euro/dollar pair; it moves calmly and has a small spread. The Swiss franc is a safe-haven asset, thus the pair may go down during crises. It is most active during the European and American sessions.GBP/USD is the British pound vs the US dollar. The currency pair has increased volatility and is popular among traders. It may demonstrate mighty movements of several patterns or trigger nearby Stop Losses by false breakaways. The pound reacts dramatically to political events and economic data in Britain. The pair is most active during the European and American sessions. How many currency pairs do we use in trading? Many traders wonder how many currency pairs they should use in trading. I think, there are two approaches to the issue depending on your trading style: Minimum pairs This approach is based on the fact that each currency pair is peculiar, and the nuances of its behavior may be studied if you focus on one or two pairs. Spending some time on mastering one pair, learning the factors that influence it (important news, macroeconomic statistics), you may get a certain advantage. A wide range of pairs This approach is based on the use of certain trading patterns, Price Action patterns, candlesticks, etc. Having learned to find some pattern on the price chart and having made sure of its efficacy, we may start trading. For this approach, using a lot of currency pairs is reasonable: you scan the charts, find patterns, and get started. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted February 28, 2023 Author Share Posted February 28, 2023 Larry Connors' Double 7 Trading Strategy Author : Victor Gryazin Dear Clients and Partners, In this material, we will get acquainted with the "Double 7" medium-term trading strategy of the famous trader Larry Connors. We will learn what it is based on, and how it can be used in trading. We will consider its advantages and disadvantages and give an example of trading using this strategy. How the Double 7 strategy works The Double Seven is a fairly simple trading system that was introduced in the book “Short-Term Trading Strategies That Work”. It was written by the famous investment consultant and stock trader Larry Connors in co-authorship with the developer of trading systems Cesar Alvarez. The strategy was created for trading in the stock market, and the authors used it to trade major stock indices (S&P 500, Dow Jones) or index ETFs. The Double 7 is based on the concept that when trading major market indices, an effective strategy is to buy on pullbacks in a major uptrend. A valid uptrend is defined as the price being above the 200-day Moving Average. A pullback is defined as a close below the lowest low of the last seven days, in which case a buy is opened. Once a buy is opened, one must wait for a new seven-day high to close the position. After reading the trading rules, we can see that the "Double Seven" was developed for daily charts and is only used to open and close long positions in a rising market. That is, it works only in one direction – to buy the asset, shorts (short positions) are not used in this strategy and Stop Loss orders are not set. When tested by Connors and Alvarez, the system showed positive results on stock indices, ETFs, and highly liquid US stocks. Setting the Moving Average indicator This strategy uses the Moving Average indicator to determine the current trend. Moving averages are included in most modern trading terminals, plotted directly on the price chart. In the popular trading platforms, MetaTrader 4 and MetaTrader 5, you can install the Moving Average on the chart of the selected instrument through the Main Menu: Insert → Indicators → Trending → Moving Average. In the setup window that appears, select period 200, line colour and thickness, MA method: Simple. How to trade the Double 7 strategy The algorithm for using the strategy in trading: The price chart should be above the 200-day moving average, indicating an uptrend.We must wait for the day to close at the low of the last 7 days.If points 1 and 2 are met, a buy position is opened.The signal for exiting a position is to close the day at the seven-day high. Advantages and disadvantages of the Double 7 strategy Advantages: Works well in a rising market, giving entry points into an uptrend after small corrections. The strategy generates profitable trades, as long as there is a strong uptrendThere is no "stop order" in high market volatility, as no Stop Losses are placed Disadvantages: Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 2, 2023 Author Share Posted March 2, 2023 How to Beat Greed in Forex? Author : Victor Gryazin Dear Clients and Partners, The ability to control your emotions lies at the basis of your expertise as a trader. If a trader falls prey to their emotions, they lose control over their trading. This means breaking the rules of your trading system and, as a rule, ends in losing your money. In this overview, we will discuss what is greed in Forex and how to beat it. How does greed appear? Many people start trading in the hope they will get rich in a short time. This misjudgment is supported by fantastic stories of success spread by the media. You might have heard of a young trader from the US Timothy Sykes who started trading in high school and earned his first million by the age of 21. Sounds amazing, doesn't it? However, many neglect the fact that Sykes achieved this by long and painful training, making mistakes, losing money, but perfecting his strategy, and coping with his emotions. Experiences traders know that trading provokes the strongest human feelings and passions that you need to bring under control. A bright example is greed that can lead to losses and depression if you let it rule. Greed is an unstoppable desire to own more and more fortune. Some might say that this is all personal, and there is nothing reproachable in the craving for more. However, greed is usually accompanied by unrealistic expectations and hopes, and a lack of self-control. This becomes a large stumbling rock in the trader's way to success because they start breaking their trading rules, which leads to losses. Also, greed increases stress and nervousness that nag on the trader throughout their work. This is a direct way to exhaustion that makes it difficult to think rationally about trading in financial markets altogether. Hence, you need to know how to detect greed in the early stages and fight. Main symptoms of greed Let us have a look at the main symptoms that signal the advent of greed. Unrealistic expectations Ambitions are great when they are rational. However, when it comes to money, one's common sense often loses the battle to greed, especially if the first couple of trades was a success. Trading on a demo account, which is where most traders start from, is peculiar in the sense that there is no psychological barrier in it — the money is not real. On a demo account, trading is fun. That is why many over-ambitious traders rush at switching to a real account. They think that if they made it on a demo, real trading will also go smoothly, so why to waste your time on sheer practice. Their expectations are too high, they imagine how they become millionaires in a week. However, real trading quickly sobers them, but the lack of due preparation and money-management skills leads to losses. Poorly based hopes A poorly based hope for a profit must in no way be the moving force for a trader. Such hopes, having no real support, lead to increased risks. This feeling is characteristic mostly of beginners, who hope that their trades will for sure bring them a profit if they wait for a little. A classic example: a trader opened a trade and waits for the price of the asset to reach the desired level. But the market goes another way, and the trader obediently watches their deposit melt. Nonetheless, they do not close the position hoping that the market will soon reverse in their direction. This does happen sometimes but most often, this hope never comes true, and the trader suffers a serious loss. Ways to control greed To control your greed and prevent it from harming your trading, you have several proven methods: Stick to your trading rules The main instrument that helps traders beat greed is a reliable trading system. The latter is a set of certain rules that trading is based on. If a trader sticks to the rules, their greed is under control. They make trades based on clear signals, not the dream to become rich. Track your emotional state You must always know what and why you are feeling. If you feel that you have lost emotional balance, pause for a while. It will be wise to stay away from the market for a short while after a series of losing or profitable trades. Such series can provoke strong emotions that might harm your trading. Hence, you should stop and calm down before carrying on with your work in your normal balanced state of mind. Control your risks Risk control is an intrinsic part of trading. Money management is a way to manage your capital by a certain risk control pattern. In other words, this is a way to choose the part or share of your assets that you are ready to risk in each trade. Wise risk control helps you protect your deposit from greed and other emotions. Use pending orders The use of pending Stop Loss and Take Profit orders decreases the influence of greed on your trading. A Stop Loss limits losses (and protects the profit) when the market turns against the trader. A Take Profit will lock in your profit when the price reaches the specified value. This order helps to close a trade in time near the levels from which the price might correct or reverse. Closing thought Greed frequently harms trading in financial markets. Uncontrolled greed makes you violate your trading rules and might lead to serious losses. Hence, you need to detect the symptoms of greed accurately and use proven ways of beating it. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 7, 2023 Author Share Posted March 7, 2023 How to Test a Trading Strategy Author : Victor Gryazin Dear Clients and Partners, Today we will explain how to test a trading strategy. We will begin by explaining what a trading strategy is, why it needs to be tested, and how to do this. We will also give you some important recommendations. What is a trading strategy? A trading strategy is a trader's main tool that gives them an advantage in the market. In other words, it is a set of trading rules that have been tested in practice. The strategy can be considered successful if the total result of all deals made by using it within a specific period (month, quarter, year) is positive, i.e., profitable. A trader's failure to have a clear, understandable, and practically proven system when trading can lead to a loss of funds. Making profit from random unsystematic trades is possible, but it will mostly depend on luck rather than experience and knowledge. You can only be successful in the long run if you use a proven trading strategy. Why test a trading strategy? Backtesting is the process of assessing how well a trading strategy can perform under past conditions. It is a key component in developing an effective system. There are various possibilities to change strategy parameters, and the adjustments made can have a significant impact on the results. Such testing shows the overall performance of an idea and checks whether some trading parameters will work better than others. Testing the chosen trading approach on past data allows you to assess its effectiveness without any real monetary investment. The basic logic behind such testing is the assumption that a system that has worked well in the past is likely to also be effective now. Correct backtesting on historical data and obtaining positive results increases the trader's confidence that the idea will work. If the backtest shows negative results, the parameters should be changed or the chosen strategy should be abandoned. Ways to test a trading strategy You can test your trading approach on historical data or real trading conditions, either manually or by using special programmes. Manual backtesting Manual testing with historical data is a rather time-consuming process. This method is used when automated testing cannot be used for one reason or another. Manual test scheme: A chart of the financial instrument is opened. All necessary indicators and tools for trading according to the strategy are installed. The desired timeframe and the period of interest in the quotes history are selected.The strategy then searches the chart for setups (conditions) for trades.When a strategy is detected, the trader records all parameters of the potential trade: date, entry point, direction, Stop Loss, Take Profit, trade result, and any other useful information.After a careful examination of all the potential trades found, their individual results and the total are analysed. A conclusion is made as to whether trading on this system will bring profit or loss. If the strategy works at a loss, it is abandoned, or adjustments are made to improve its effectiveness. After the changes have been made, the strategy is checked again, and the process is repeated until it achieves an acceptable result. Manual testing of a trading strategy on historical data takes time and discipline. Correctly performed testing creates the conditions for a more accurate understanding of the level of success of the chosen approach and allows you to improve the practical skills of identifying setups for trading. Automated backtesting Special software is used that finds trades that meet the strategy's criteria. It summarises profitable and losing trades to show whether the strategy has been effective over a certain period of time. There are many trading platforms that provide such testers nowadays. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 14, 2023 Author Share Posted March 14, 2023 How To trade the GBP/JPY Strategy Using the Bollinger Bands Author : Andrey Goilov Dear Clients and Partners, Today we will look at a short-term trading strategy based on the Bollinger Bands indicator with different timeframes. It is designed to work with the currency pair GBP/JPY on the M1 chart. GBP/JPY is a highly volatile instrument, and the technical indicator will indicate instants when the price diverges significantly from its average fluctuation and there is a high probability of a move in the opposite direction. How to trade GBP/JPY with the Bollinger Bands strategy We will show you how to use Bollinger Bands signals with three different deviation values. We will look at the position opening and discuss the Stop Loss and Take Profit rules according to the strategy. Bollinger Bands in brief Bollinger Bands is designed as a trend indicator, and it can show not only the direction of the current trend but also estimate volatility. It has three lines: a simple moving average with a period of 20 is positioned in the middle, while two other lines are positioned above and below, estimating maximum and minimum values. The extreme lines act as a floating support and resistance levels. According to the author of Bollinger Bands, prices spend 95% of the time in the area between the bands of the indicator. Therefore, any price move out of this corridor can be seen as a reversal possibility and an imminent return of prices to average values. The behaviour of Bollinger Bands during strong market trends is also interesting. As a rule, in an uptrend, an investor wants to buy at the lowest price. In this case, one should expect the price to test the lower boundary of the indicator. In a downtrend, the investor wants to sell at the maximum price. In this case, the price is expected to test the upper boundary of the indicator. How to set up Bollinger Bands Add the Bollinger Bands indicator to the chart. To set the drawing period and colour of lines, double left-click on the indicator in the chart or right-click once and select "Properties" in the menu that appears. Then change the colour of the lines and the deviation value in the opened settings window.Bollinger Bands with deviation 2 - select the red colour of the lines. Extreme lines of the indicator characterise the nearest support and resistance levels. According to the author of the indicator, the price very rarely moves beyond these linesBollinger Bands with deviation 3 - choose the blue colour of the lines. According to the author of the indicator, price moves beyond these lines are even rarerBollinger Bands with deviation 4 - choose the green colour of the lines. According to the author of the indicator, the price will reach these lines as rarely as possible, only at moments of peak volatility in the market Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 16, 2023 Author Share Posted March 16, 2023 Reversal Patterns: How to Detect a Change in Trend Direction? Author : Maks Artemov Dear Clients and Partners, Imagine a distinct uptrend that has long been in the market. How do we know when it is over? Or, if a descending dynamics last long, how do we know where it reverses? These are the questions that many traders are perplexed by. There is no unique answer to this question. The trend may reverse at any time, so the trader's task is to detect the time and place. There are lots of theories, practices, indicators, and other ways of market analysis meant for this. Today, I will speak about a classical method of detecting a trend reversal. Watching the charts, market players have come to certain conclusions about the laws of price movements. At specific moments, the impulse comes to an end, and the trend changes its direction. Let us have a look at a group of reversal patterns, which are likely to precede a trend reversal. What patterns do we look for? Before speaking about reversal patterns, a small remark: candlestick patterns may have different names in different strategies and translations; moreover, they may differ slightly in appearance, however, their essence remains the same. The main candlestick patterns at the top of the trend would be: Shooting StarHanging ManDojiGravestone DojiHaramiEngulfing Reversal patterns at the top of the trend One condition, common for all reversal patterns, is the presence of a strong support or resistance level and a long-term trend. Shooting Star It looks like a candlestick with a small body and a very long upper shadow. It normally forms after the abrupt growth of the quotations. The lower shadow, in this case, will be short. Ideally, the body of the candlestick and the impulse have opposite colors (after a row of growing candlesticks, the Shooting Star is a descending one). Hanging Man . In essence, it is an inverted Shooting Star. The upper shadow is minimal or lacking, the body looks small, the lower shadow looks rather long. The Hanging Man is similar to the Hammer. Doji These candlesticks may form at any place of the chart and still have the name Doji. Other candlesticks are different, and we will discuss them later on. A Doji looks like a cross or a "+". This means it has tiny shadows, and its body looks like a line because the opening and closing prices are on one line. Some Dojis have two long shadows and are called Legged Dojis; however, the signal they give is the same. Reversal patterns at the bottom of the trend Now - to the reversal patterns at the bottom of the trend. I should make it clear that the candlestick patterns themselves may look absolutely identical to those that form at the peak of the trend; however, they have different names. The work off is also the same: a trend reversal. Hammer It looks like the Hanging Man: a small body, a small or lacking upper shadow, and a long lower shadow. The only difference is that the pattern forms at the bottom of the trend. Inverted Hammer It is similar to the Shooting Star: a long upper shadow, a small body, and an almost lacking lower shadow. Like the Hammer, it forms at the bottom of the trend. Engulfing It consists of two candlesticks. The first descending bar has a short body, the second one is visually larger, and its body covers up the projection of the first pattern. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 21, 2023 Author Share Posted March 21, 2023 How To Trade the "Moving Averages Based on Fibonacci Numbers" strategy Author : Victor Gryazin Dear Clients and Partners, In this article, we will look at a medium-term indicator trading strategy using multiple moving averages based on Fibonacci numbers. We will find out which indicators to set and talk about the rules for making trades. How the strategy works Fibonacci numbers originated with the famous Italian mathematician Leonardo of Pisa, who was better known as Fibonacci. He investigated an infinite mathematical sequence that was later named after him. In it, each successive number is equal to the sum of the previous two numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and so on. Dividing the previous number in the sequence by the next number gives 0.618. Dividing the previous number in the sequence by the next number through one produces 0.382. The golden ratio is based on this relationship. With the advent of exchange trading, the Fibonacci sequence began to be used in trading. Various tools based on Fibonacci numbers can be found in almost any trading platform. This strategy uses the intersection of four exponential moving averages (EMAs) with periods corresponding to the Fibonacci numbers (5, 8, 13, 21) to find trading signals. Moving averages have long established themselves as a simple and effective tool for trend analysis. When all four moving averages are moving horizontally and intertwined, this is a sign that the market is in a sideways corridor and there is no clear trend. When the price is rising and indicator lines begin to diverge and move upwards, this signals the beginning of an uptrend. When the price decreases and the indicators diverge moving downwards, it indicates the beginning of a downtrend. How to install the Moving Average indicator The Moving Average indicator is included in most modern trading terminals, displayed directly on the price chart. In the popular MetaTrader 4 and MetaTrader 5 trading platforms, you can install the Moving Average on the chart of the selected instrument through the Main Menu: Insert → Indicators → Trends → Moving Average. In the window that appears, select period 5, colour and thickness of the line, and method MA: Exponential. Repeat these steps to set up three more moving averages with periods of 8, 13, and 21, selecting different colours for the indicator lines. This will result in four differently coloured moving averages on the price chart, which will be used to search for trading signals according to the strategy. How to use the strategy in trading This strategy is quite versatile and can be used on different timeframes and financial instruments. To trade, you have to wait for the price to move up or down out of the sideways range. In a sideways range, all four moving averages are intertwined and move horizontally – there are no trading signals. A buy signal for the strategy The price begins to rise, crossing all four moving averages from bottom to top, renewing the nearest local highThe moving average lines cross and begin moving upwards, gradually diverging from each otherA buy position is opened, and the Stop Loss is set at the nearest local low, which is below the moving averagesTake Profit is taken when the moving averages are crossed in the opposite direction, or when the price reverses and closes below all four moving averages Advantages and disadvantages of the strategy Advantages: The strategy works well in trends, allowing you to profit from strong and sustained movementsThe potential profit can be several times greater than the potential loss Disadvantages: Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 23, 2023 Author Share Posted March 23, 2023 RoboForex adds the Performance Fee scheme for CopyFX to the R StocksTrader app Dear Clients and Partners, Here we come with a long-awaited CopyFX update on R StocksTrader: RoboForex added a new possibility for the CopyFX Traders to earn commission from their subscribers - the Performance fee. The Performance Fee is a commission scheme in CopyFX which allows Traders to get the share of the total amount of profit made by their subscribed Investors, so the more your subscribers earn from their copied deals - the more commission you get. This scheme mostly suits experienced and confident Traders who demonstrate a stable performance in the medium and long run. More about Performance Fee Why do Traders choose CopyFX in R StocksTrader? Minimal investments Minimal deposit of 100 USD. High order execution speed at the same price Instant copying of transactions with the same execution price for the Trader and the Investor guaranteed. Comfortable app Trade in R StocksTrader any time from any place and make a profit on commissions. 1,500+ instruments for copying Take advantage of this unique opportunity and offer Investors more than 1,500 instruments to copy. Copy trading is proven popular among our clients and partners. We are, therefore, constantly developing our products, enhancing them, and introducing new functions to both the desktop and mobile versions of the platform. Stay tuned for the next update! Become a CopyFX trader in R StocksTrader now and embrace all the benefits! Learn more about copy trading Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 30, 2023 Author Share Posted March 30, 2023 False Breakouts on Financial Markets: How to Detect and Use? Author : Andrey Goilov Dear Clients and Partners, Hi everyone, today I'm going to talk about false breakouts. In certain cases, it might be unclear to the trader whether there has happened a breakout of the resistance level and, hence, the bullish trend will continue. Such a breakout might be false so that the price will reverse quite soon and go in the opposite direction. In certain cases, such formations may provoke a full-scale reversal of the trend. As a rule, such things happen at the moment of testing the support/resistance levels. This situation is similar to a reversal. However, it might be a test of a normal trendline, as well as the completion of such patterns of tech analysis as the Triangle or Head and Shoulders, when the price escapes the pattern and the falseness of such a breakout becomes questionable. This type of breakouts pertains to chart analysis. If we are evaluating the chart without indicators, our evaluation will always be subjective to some extent. It is should be kept in mind that this is an integral part of chart analysis. What is a false breakout? In most cases, a false breakout is the "tail" of a Japanese candlestick, which means that the price tried to break the support level away but the sellers were not strong enough to secure themselves under this level. Then the price bounces and moves upwards. This might signify the strength of the buyers and forecast further growth. Types of false breakouts Larry Williams was one of the first experts to describe false breakouts. He singled out such a type as Specialists Trap. If the market is bullish, the pattern is formed at the breakout of the resistance level closing much higher than the resistance area. The minimum of the candlestick preceding the one with the breakout acts as a sort of a critical level here. In the case of falling and breaking this level away, we should expect a market reversal and overall falling. Larry Williams thinks that here we can see the false breakout form when traders enter the market emotionally. How to detect a false breakout? Tech analysts give different hints on false breakouts of levels or trendlines. For example, a true breakout requires closing above the resistance level. If the close prices return under the level the breakout may be false, so no growth us to be expected here. Also, there is a rule of 3% applicable to important levels and lines. It says that the prices must rise above the level by more than 3%. Imagine we are watching good growth of the gold prices. The important support area is at the level of 1455. If this level is broken away we might speak about a potential reversal to a downtrend. If we apply the rule of 3% here the price must fall below 1411 for the breakout to be true. A decline to 1450 and a return indicates a false breakout, after which the growth is likely to continue. However, this rule is just an instrument that helps distinguish between true and false breakouts. Other traders add time filters or follow-up tests of the broken levels to avoid false breakouts. How to use false breakouts? Larry Williams points at the fact that it is impossible to know beforehand whether the level will be broken out or not. What is more, he insists on using our own methods of analysis to use false breakouts effectively. As we may see, when the market is growing and a reversal Double Top may form, it is likely that the breakout of the resistance level will be followed by a further decline of the price. So, if it looks like the pattern will form, no growth should be expected. Conversely, if the market is falling and its structure reminds of a Double Bottom, one should not hurry to sell after a breakout. If the prices have managed to return inside the pattern soon after the breakout, a market reversal is likely to happen, so that the pattern will be executed. Very often traders use the MACD indicator that shows divergences on the chart well. If at the moment of a breakout of an important level there forms a convergence or a divergence on the chart, the breakout is likely to be false and the market should be entered in the opposite direction. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
broforex51 Posted October 26, 2023 Share Posted October 26, 2023 I was trading with RoboForex and there is no good at all, delay deposit and withdrawal, always have requote so I lose my opportunity to hit the market, I am very disappointed about this issues. It's better if I go find another broker. Link to comment Share on other sites More sharing options...
Root Admin MrD Posted November 14, 2023 Root Admin Share Posted November 14, 2023 @RBFX Support have you already nominated RoboForex broker at the TGF Awards 2023? There are less than two weeks left. Add your nomination now: https://awards.topgold.forum/ Link to comment Share on other sites More sharing options...
RBFX Support Posted November 22, 2023 Author Share Posted November 22, 2023 RoboForex: upcoming changes to the trading schedule in view of the Thanksgiving holiday in the US Dear Clients and Partners, We are informing you of the upcoming adjustments to the trading schedule due to the Thanksgiving holiday in the US. This schedule is intended for informational purposes only and may be subject to further amendments. MetaTrader 4 / MetaTrader 5 platforms Schedule for trading on CFDs on the US indices (US30Cash, US500Cash, USTECHCash) and the Japanese index JP225Cash 23 November 2023 – trading stops at 7:40 PM server time 24 November 2023 – trading stops at 8:00 PM server time Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on Oil (Brent, WTI) 23 November 2023 – trading stops at 7:40 PM server time 24 November 2023 – trading stops at 8:00 PM server time Schedule for trading on CFDs on US stocks 23 November 2023 – no trading 24 November 2023 – trading stops at 8:00 PM server time Schedule for trading on CFDs on US futures 23 November 2023 – no trading 24 November 2023 – trading stops at 7:15 PM server time R StocksTrader platform Schedule for trading on US stocks and ETFs 23 November 2023 – no trading 24 November 2023 – trading stops at 8:00 PM server time Schedule for trading on CFDs on US stocks and ETFs 23 November 2023 – no trading 24 November 2023 – trading stops at 8:00 PM server time Schedule for trading on CFDs on the US indices 23 November 2023 – trading stops at 7:40 PM server time 24 November 2023 – trading stops at 8:00 PM server time Schedule for trading on Metals (XAUUSD, XAGUSD, XAUEUR) and CFDs on oil (WTI.oil, BRENT.oil) 23 November 2023 – trading stops at 7:40 PM server time 24 November 2023 – trading stops at 8:00 PM server time Schedule for trading on CFDs on US futures 23 November 2023 – no trading 24 November 2023 – trading stops at 7:15 PM server time Please take note of the above amendments to the trading schedule as you plan your trading activity. Sincerely, The RoboForex Team 1 Link to comment Share on other sites More sharing options...
RBFX Support Posted November 23, 2023 Author Share Posted November 23, 2023 The RoboForex partners promotion with cash prizes worth $1,000,000 continues! Dear Clients and Partners, We remind you that all RoboForex partners can take part in our grand promotion and win cash prizes. The distribution of 60 prizes from $1,000 to $15,000 is organised once a month to April 2024. The winners will be decided by the market. A system as transparent as possible - It's all up to stocks. Join our grand promotion! Sincerely, The RoboForex Team Link to comment Share on other sites More sharing options...
RBFX Support Posted November 28, 2023 Author Share Posted November 28, 2023 How to Trade on Forex? Ultimate Guide for Beginners Dear Clients and Partners, What are financial markets – exchange and Forex? When an uninitiated reader encounters the collocation "financial market", they discern no difference between such terms as "stock market", "exchange", "Forex", "equity market", "bond market", "currency market", "derivative market", etc. So, I think there should be an explanation what the financial market really is. First of all, understand and remember that the financial market is not just a place for trading, but the entire system of the economic relations, which appeared in the process of exchanging different goods and recourses. The financial market is an environment for mobilization and aggregation of capital, for loaning, exchanging currencies, and investing in the industrial sector. Balance of supply/demand for borrowed funds forms the global financial market. The global financial market can be classified according to types of goods that are traded. There are following types of financial markets: The currency market (Forex). The basic asset here is currencies, which are bought and sold by brokerage companies, banks, and investment funds.The stock market. This is the place where they trade securities (stocks, bonds, bills, derivatives).The commodity market. Among assets that are traded here are oil, metals, farm produce.The precious metals market is often considered as a part of the commodity market, but it should be classified as a separate market due to significant trade turnover growth. As a rule, precious metals often serve as safe haven assets. Trading procedures on Forex Since the Forex market is an OTC market, it doesn’t imply actually buying or selling currencies like they do in exchange offices. A lot of people ask themselves a question: "How do I become a trader and start trading on financial markets?" Let’s try to track the career path of a future "big boy from Wall Street" step by step. Early stages in trading on Forex and other financial markets are pretty similar. Let’s take a closer look at this process by the example of the currency market. First of all, a trader-to-be chooses a broker and decides on the trading platform they are going to use for trading. A variety of trading terminals available on the market allows to choose one that meets all their requirements and preferences. After choosing the platform, they have to decide on a trading account type. As a first step, it’s better to go for a standard demo account, which helps to learn how to open and close positions, place Stop Loss and Take Profit levels, and use charts and indicators. Stop Loss is a protective order placed by a trader to limit possible losses in case of negative market situation. The order level is defined on basis of the current market situation, risks that a trader can afford, and their trading strategy. Take Profit is an order to close a position when the instrument quotes reaches some specific price level. The order parameters are set by a trader based on their forecasts or according to their trading strategies. Take Profit orders can be placed not lonely at the position opening, but later as well. Also, there are methods of trading without Stop Loss and Take Profit levels, when a trader closes each deal manually after evaluating the current market situation. How to trade on demo account? Let’s assume that a trader chooses MetaTrader 4 terminal, opens a demo account with 10,000 virtual USD, and decides to trade EUR/USD positions of 1 lot. In this case, a trader opens positions using virtual money and if they lose it, no real financial losses will be incurred. Any trader has an opportunity to open several demo account with the same broker and trade any amount of virtual funds. After that, it’s time to learn how to open positions. After opening the EUR/USD chart, a trader sees that the price may rise in the future (we’ll later discuss what reasons this conclusion is based upon). To open an order, we choose "New order" tab, specify the volume (by default, 1 lot), set Stop Loss and Take Profit levels, and add comment to the order if necessary. Read more at R Blog - RoboForex Sincerely, RoboForex Team Link to comment Share on other sites More sharing options...
RBFX Support Posted November 30, 2023 Author Share Posted November 30, 2023 RoboForex receives "Best Trading Conditions" and "Best Partner Program" awards Dear Clients and Partners, We are delighted to inform you that RoboForex has received awards in two prestigious nominations from influential media outlets. The company won the "Best Trading Conditions" title at the International Business Magazine Awards and the "Best Partner Program" accolade from the World Economic Magazine Awards. Trade with the industry leader and experience the advantages of being a RoboForex client Become a RoboForex partner and earn up to 84% with the Partner programme’s best conditions Instant partner commission Earn up to 70% commission under the Partner programme Earn up to 70% commission under the Partner programme Loyalty programme Receive up to 20% of the total partner commission as extra profit 24/7 Support RoboForex Support is available 24/7 to assist you No Payout Limits There are no restrictions on the maximum payments per month or per client Convenient payouts The commission is automatically transferred to your account on a daily basis Use our interactive Affiliate Calculator to estimate your potential profit. Sincerely, The RoboForex Team Link to comment Share on other sites More sharing options...
RBFX Support Posted December 5, 2023 Author Share Posted December 5, 2023 (edited) S&P 500 Forecast for 2024: Can the Index Hit 5,000? Dear Clients and Partners, On 29 November 2023, we looked at the popular stock index S&P 500 (US500), examining global economic factors influencing it and potential investment and trading strategies. Based on technical analysis, we assessed the current situation on the index chart and explored analysts' forecasts for 2024. Overview of the S&P 500 The S&P 500 is one of the world’s most widely used stock indices, comprising 500 of the largest companies traded on US stock exchanges. It was created on 4 March 1957 by Standard and Poor’s, now known as S&P Global Inc. Companies in the index basket represent various economic sectors and industries, making the S&P 500 a crucial gauge for assessing the US stock market. The S&P 500 eligibility criteria Market capitalisation is greater than or equal to 14.5 billion USD At least 50% of shares should be available for public trading Stocks should be traded on the NYSE or NASDAQ The company should have a primary listing on a US stock exchange, comply with US securities laws, and generate at least 50% of its income in the US Operations for the last four quarters should be profitable The list of the S&P 500 companies is revised every quarter. If, for any reason, a corporation no longer meets the above criteria, it is replaced with another company. Looking back: the S&P 500 performance in recent years According to TradeThatSwing, the average annual return for the S&P 500 from September 1973 to September 2023 inclusive is 10.75% if unadjusted for inflation and 6.59% if adjusted for inflation. From 1998 to 2022 inclusive, the maximum index return of 30% was recorded at the end of 2013. The minimum value for the same period was seen at the end of 2008, standing at −38%. The average annual return for the S&P 500 from September 2018 to September 2023 inclusive reached 10.49% if unadjusted and 7.28% if adjusted for inflation. It can be assumed that the index value could have been higher if stock performance in 2020 were not characterised by the high volatility caused by the COVID-19 pandemic. In addition, it was negatively affected by both a bearish market and a high inflation level in 2022. Global economic factors influencing the S&P 500 The Federal Reserve’s monetary policy. Interest rate changes may impact borrowing costs for companies, affecting profits and investment decisions Global economic growth. This usually has a positive impact on companies’ profits and contributes to index growth Exchange rates. The strengthening of the US dollar may adversely affect profits of US companies with a significant share of global operations Corporate reporting. Positive quarterly and annual reports may drive up stocks of the S&P 500 companies, creating favourable conditions for index growth Important political events in the country. For example, tax reforms or regulation changes may have a substantial effect on the stock market, and hence the index Energy source prices. Changes in oil and gas prices may affect the energy sector, and index quotes Read more at R Blog - RoboForex Sincerely, The RoboForex Team Edited December 5, 2023 by RBFX Support Link to comment Share on other sites More sharing options...
RBFX Support Posted December 7, 2023 Author Share Posted December 7, 2023 What is CFD and Its Difference from a Real Asset? Dear Clients and Partners, Are there any beginners, who haven’t asked themselves a question what a CFD is and how it is different from a real asset? Let’s go deeper in these terms and try to determine which one of them is more interesting and easier-to-use for both beginners of stock exchange markets and experienced investors. What is CFD? First of all, one should know what CFD stands for. CFD means a Contract for Difference. As a matter of fact, it is an instrument traders can use for trading or speculating in price differences, but without buying a base asset, stocks, metals, or commodities. Trading on the stock market Now, let’s compare trading stocks and CFDs. In order to participate in trading stocks, a trader has to open an account. In this case, the leverage value will be 1:20, at most. This, in its turn, means that traders with small deposits will have limited opportunities for trading. Usually the minimum contract size on stock exchange markets is 1 lot, which is 100 stocks. For those, who would like to use smaller contract sizes, in R StocksTrader, the multiasset trading platform the minimal contract size is 0.01 lots - 1 stock. The maximum contract size is limited only by the amount of funds on a trader’s account or the number of traded stocks. It’s quite easy to calculate how much money a trader requires for trading, if, for example, a stock of one popular social network costs 181 USD. Margin requirements for 1 lot (100 stocks) will be 181 * 100 = 18,100 USD. With small deposits, there will be no opportunities for opening this position. But this is just one of the many examples. However, on stock exchange markets one can find stocks at the price from 0.01 USD, that’s why there are a lot of options for trading even if there is insufficient money for expensive stocks. Apart from this, one should take into account the platform expenses (so called monthly fee) and the commission to be paid to a broker for every opened and closed positions (on average, a trader will spend on this about 4,000 USD a year). Holding positions overnight is free at some of the brokers, but some of them make traders fulfill some certain conditions. Corporate actions In case of trading stocks, there are both expenses and some positive moments. For example, cash dividends, because a trader acts as a shareholder with the right to vote at the company’s meetings (for this, a trader has to fulfill some certain conditions). However, in most cases, trading is speculative and has no goals to receive dividends or to take part in shareholder meetings. One should know that there are some restrictions in trading. Not all stocks are available for credit sale; sometimes, there is no access to open a short position, especially if a trader hasn’t got this asset. Trading CFDs Now it’s time to talk about Contracts for Difference. In this case, brokers usually provides bigger leverage values than for trading stocks. Everyone decides for themselves whether it’s good or bad, but increased leverage values allow traders to expand the list of available trading instruments. An opportunity to trade, both buy and sell, without any restrictions. If a trader buys some trading instrument, but the instrument price falls contrary to expectations, CFDs offers an opportunity of hedging. Trading Contracts for Difference doesn’t imply buying/selling a base asset. Quotes of CFDs and base assets are usually the same, but sometimes there may be 1-2 pips difference due to the internet connection speed. CFDs can be traded through “Forex” terminals, which are usually provided for free. However, trading hours for both CFDs and base assets are the same. The minimum contract size for CFDs, unlike stocks, is 0.1 lots, while the maximum size is limited only by opportunities traders have. Read more at R Blog - RoboForex Sincerely, The RoboForex Team Link to comment Share on other sites More sharing options...
RBFX Support Posted December 12, 2023 Author Share Posted December 12, 2023 How to Trade with Leverage Dear Clients and Partners, What is Leverage Leverage means the ratio between the money you own and that borrowed from the broker. Different brokers offer different leverage sizes, which also depend on the market you are trading. On Forex, you can easily find brokers offering up to 2000:1 leverage, and there's one that claims to offer unlimited leverage to its clients. In the stock market, meanwhile, you'd barely come across a broker that offers over 20:1 leverage. Leverage in Forex Leverage got especially popular in Forex, as it is less volatile, and one needs to have their funds leveraged in order to boost the performance, and, subsequently, the profits. The EUR/USD, for instance, moved just 1.10% in May, which would have returned you a 1.10% profit without leverage (1:1). Over the same period, Tesla yielded 14% profit to the shareholders. This way, once the Forex brokers stop offering leverage, the gains in the market will get ridiculously small for the retail traders, and those will have to move the money elsewhere. How to Get Leverage A broker will grant you leverage once you deposit your own funds on your account with that broker. Those funds are called margin, and they act as collateral for the loan money you get from the broker. Every broker has its own minimum deposit limit; in many cases, it is as little as $10. Some even don't require any: you just get a welcome bonus, 'free money' that acts as margin. Leverage and Expenses When trading with a broker, you as a trader always have to pay commissions on every trade you make. The commission or fee may be priced in spread or may be paid apart. Besides, when rolling a position overnight, you will have to pay the swap. Without leverage, those fees can be barely seen in the statement, but when you do use leverage, they become a few times larger. Let's assume you open a USD/JPY trade with a 1:1 leverage and a $1,000 deposit. With the smallest lot size, 0.01, and a spread of 1.90 pips, you get a ridiculous $0.17 fee. Once you have moved to a 100:1 leverage, however, you will be able to open a 1-lot position, and, considering this, the fee will increase to as much as $17.48. Thus, larger leverage leads to larger expenses. Advantages of Leverage Leverage is so much popular in Forex because, without it, you won't earn as much in Forex as in stock market over a certain time frame. Leverage increases the capital you can operate, thus boosting your performance and ROI. Look at the above example: suppose you opened a EUR/USD trade on May 1 and closed it on may 31; this would have yielded you 1.10% profit. With Tesla, you would have earned nearly 14 times more. That's why, if you don't use leverage in Forex, you don't want to trade Forex at all! Leverage Risks Unfortunately, not every trade results in profit. Sometimes, you will certainly have losing trades, and in this case the leverage will magnify your losses. Say, you went long on EUR/USD with a $1.200 deposit, the price is 1.1200, and your lot size is 0.01 (micro lot), each pip thus costing $0.10. Then the price fell to 1.190, and in case you decide to close your position, your loss will be as little as one dollar! With 100:1 leverage, this would be a different story. You would have most likely gone one lot, and a 10-pip fall will now cost you as much as $100. Your profit and loss size, therefore, is strictly bound to the leverage size; with more leverage, you earn more and you lose also more! Read more at R Blog - RoboForex Sincerely, The RoboForex Team Link to comment Share on other sites More sharing options...
RBFX Support Posted December 14, 2023 Author Share Posted December 14, 2023 Types of Financial Instruments Dear Clients and Partners, On financial markets, no matter when, while working there or just getting to know them, investors will surely face such things as financial instruments. What are they? We’ll paint it in details. Financial instruments Financial instruments imply a wide range of terms and definitions. It’s very easy to see how numerous they are: they include a category of banking tools, a group of market assets, and a lot of other financial operations that many people have heard of, but only few have really seen and used them. All financial instruments can be roughly divided into two main groups: the first group is available to everyone without any exceptions, while the second one requires particular knowledge and skills. As a result, the first group will contain credits, loans, bank deposits, and leasing. Credits and loans Credits and loans are the most widespread financial instruments for citizens. The only thing that may really compete with them is a bank deposit. A credit is an operation when a lender grants money to a borrower at a certain interest. The money, of course, is subject to return according to the agreement. As the years go by, global lending terms are getting “milder”, because banks are competing to retain customers, thus offering them better conditions. However, in developing economies it doesn’t work this way: in most cases, the rate on credit is a primary source of banks’ revenue. Bank deposits Bank deposits are another widespread financial instrument, which doesn’t imply any in-depth knowledge. In this case, a bank acts as a borrower and pays interests to a lender (an individual) for using their money after a specified period of time is over. The deposit rate is calculated based on the value of the country’s key interest rate, but sometimes there are other possible options. Leasing Leasing is a more complicated financial instrument, but it’s quite available for citizens. Leasing agreements have 3 parties: after concluding an agreement, a lessor gets a long-term asset, a lessee undertakes an obligation to pay money on account of debt repayment, while a distributor of a property or equipment sell their products. Now let’s talk about the second group of financial instruments, which is related to trading on financial markets and speculations of different types. In this case, speculations mean investment in high-risk assets with a possibility of a large income. Stocks and bonds So, what are stocks and bonds? A stock is an ownership share. After buying stocks on financial stock exchanges, an owner is guaranteed the right to receive dividends. A bond is an issued security similar to a stock, but with the attached right to receive its nominal value or money, or their equivalent within the time specified. A bond is a debt security. When it comes to risk, stocks are considered more risky financial instrument, while bonds – more conservative. Futures Then come derivative instruments. In other words, these are assets that are based on a basic concept, but the instruments themselves are pretty specific tools. Futures are derivative financial instruments based on the SPA of an asset (stocks, good, etc.), and when entering into the agreement parties agree only on the price and the delivery date. Other parameters are usually quite standard and defined by specifications. Futures are trade offers, which are traded on the market on a regular basis. Read more at R Blog - RoboForex Sincerely, The RoboForex Team Link to comment Share on other sites More sharing options...
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