RBFX Support Posted February 8, 2022 Author Share Posted February 8, 2022 How to Invest in Metaverse Author: Eugene Savitsky Dear Clients and Partners, The stock market expects that the Federal Reserve System will soon increase the interest rate, and this cause a lot of tension. The S&P 500 index has already lost 8% since the beginning of the year and remains in a downtrend. The tech sector is also suffering: over the last three months it has lost 9%, becoming one more outsider. There is no crisis these days: the interest rate is being raised to cool down the economy a bit, i.e. slow down its growth and avoid forming of a bubble. Hence, the current decline of the indices can be looked upon as a correction. The decline of stock prices and, consequently, the decline of the capitalization of companies can be used by corporations that manager to accumulate plenty of cash on their accounts during the pandemic. They will start engulfing other companies, so that 2022 can become a year of mergers. Microsoft Corporation buys Activision Blizzard The one to get started is Microsoft Corporation (NASDAQ: MSFT): on 18 January, it became known that the company was buying Activision Blizzard Inc. (NASDAQ: ATVI). After such news, the shares of the game company grew by 33%. The purchase will cost 74 billion USD. Microsoft can afford such spending: according to its fresh financial report, it has about 130 billion USD on the balance. However, what is important here is not the sum that the IT giant will pay but the direction it is going in. As the official press release goes, buying Activision Blizzard will speed up the development of the game business of the corporation and, most importantly, will provide building blocks for the metaverse. This confirms the idea that the metaverse is developing, not just in the form of empty talks nowadays but as real mergers that aim at getting closer to the virtual reality. I have already touched upon this topic in the article about the trends of 2022. Today, it is of exception interest to many — just look at the dynamics of the "metaverse" inquiry in Google. Let us get acquainted with several other companies that can increase their revenue thanks to the growth of the virtual reality industry. Autodesk Autodesk Inc. (NASDAQ: ADSK) is the largest software provider for industrial and civil building, car industry and entertainment in the world. With Autodesk software, you can create 3D animation for virtual and augmented reality, which is great for the metaverse. Hedge funds demonstrate vivid interest in the company. Autodesk shares are held in the portfolios of more than 50 investment companies. According to the report for Q3, 2021 — we will see the results of Q4 only in March — the revenue of the company reached 1.1 billion USD. This was 14% more than in Q3, 2020. EPS grew from 1.04 to 1.33 USD. However, these results turned out more modest than experts had expected, so Autodesk shares dropped and are trading in a downtrend. They are further pulled down by the general decline in the stock market. Hence, this investment should become a promising one, where you will be waiting for the negative influence to subside. Currently, the optimum purchase level for Autodesk shares will be the support level at 220 USD. Adobe Adobe Inc. (NASDAQ: ADBE) designs software and is well-known for such products as Acrobat, Photoshop, Creative Cloud, and Aero. Aero is an instrument for designers meant for creating images in the augmented reality and requiring almost no programming skills. Director-general of Adobe Shantanu Narayen considers Aero the best product for metaverse development of these days. Adobe shares, as well as those of Autodesk, dropped quite a deal after the quarterly report was published. However, the difference is that Adobe revenue lived up to the expectations of experts. Alas, they were unhappy about the forecast for the next year made by the management: EPS is expected to be 12.48-13.7 USD while now it is 10 USD. With that, the shares lost 20% of the price and keep going in a downtrend. Nonetheless, not all investors support the idea that Adobe shares are to be get rid of. Laura Desmond, a member of the board of directors of the company, used the downtrend to increase the number of the shares in her portfolio. On 7 January she bought 973 shares for about 500 million USD. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted February 10, 2022 Author Share Posted February 10, 2022 How to Trade Piercing Pattern and Dark Cloud Cover? Author: Victor Gryazin Dear Clients and Partners, Today the article is devoted to two patterns — the Piercing Pattern and Dark Cloud Cover — their forming and trading principles. How do the patterns form? The Piercing Pattern and Dark Cloud Cover are reversal candlestick patterns that predict a correction or reversal of the current trade These patterns consist of two candlesticks each and mirror each other. The Piercing Pattern forms at the lows of the chart and forecasts a reversal upwards. The Dark Cloud Cover appears at the highs and warns of a decline beginning. Speaking metaphorically, the emergency of the Dark Cloud Cover in a growing market shows that the bulls are stuck in a serious obstacle, and if they fail to overcome it, a downward correction will follow. And vice versa: if after a market decline the Piercing Pattern appears, the bears are losing the grip, and the bulls are optimistic about an upward reversal. Dark Cloud Cover Japanese traders state that this pattern in the chart gives little chance for further growth. The pattern consists of two candlesticks, a white and a black ones. At the white candlestick, the market is growing actively, and a new local high is set. Thanks to the optimism and the pressure applied by buyers, the next trading session opens with a gap upwards. But then the market falls, and the black candlestick closes in the middle of the body of the white one or even lower. As a result, the optimism of the bulls reflected in the white candlestick gets fully destroyed by the black candlestick. The bears have managed to recover, stop the bulls, and are ready to fight back. The farther the closing price of the black candlestick reaches behind the preceding white one, the stronger this signal is considered. The signal can be canceled by the growth of the price above the high of the pattern. Closing thoughts The Piercing Pattern and Dark Cloud Cover form in a downtrend or an uptrend, respectively. They predict a reversal of the current trend. Trading by these patterns can be augmented by tech analysis and indicators. In more details, this trading is described in a book called “Beyond Candlesticks: New Japanese Charting Techniques Revealed” by Steve Nison. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted February 15, 2022 Author Share Posted February 15, 2022 What Is Additional Issue of Shares and How Does It Influence Investments? Author: Maks Artemov Dear Clients and Partners, When you invest long-term and medium-term, you can face such a stock market phenomenon as additional issue of shares. Not all investors understand how it influences the capitalization of companies or their share prices, so feel vulnerable in such situations. Today’s article is devoted to the details of additional issue of shares. What is additional issue of shares? Under additional issue we understand issuing and selling new shares of a company in order to attract new capital. This measure is meant to neutralize negative factors that influence the economic situation of the company, to help expand the business, or to launch new projects that require investments. How can a company attract money? A profitable company can allocate a part of the profit to reaching new goals. However, if the size of the profit is not enough or the new project requires a colossal influx of money, the company decides on an additional issue. Another option is using loans and credits. These require extra expenses on serving them and paying off interests. This is not always profitable and increases the financial load on the company. The influence of the additional issue on the share price is quite ambivalent. The share price may drop significantly and recovery will take quite long. However, the inflow of finance in the company generated at smaller expense will have a good influence on the company in the future. What is additional issue of shares meant for? Attracting extra money to support or develop the businessIncreasing authorized capitalExpanding the share of large investors for making them more influential in the companyAvoiding extra expenses on paying off loans How is additional issue organized? In most cases, additional issue drives the share price down. In the future, the quotations can recover and even grow, but normally it takes quite long, several years sometimes. Example of additional issue The N production company had 1 million of shares in turnover that cost $1 each. Hence, the capitalization of the company reached $1 million. The board of directors and the stock meeting decided to attract additional investments sized $500 thousand. The money was necessary for building a new plant and expanding production to enter new markets. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted February 22, 2022 Author Share Posted February 22, 2022 Best Long-Term Trading Strategies: “Daily Breakout and Moving Average” Author: Andrey Goilov Dear Clients and Partners, Almost any trend strategy uses Moving Averages as they help traders to quickly define the trend. However, the tactics named “Daily Breakout and Moving Average” works differently. According to this strategy, a trader will trade against the direction of Moving Averages. In order to do that, they will have to follow quite unusual rules of using Moving Averages. If Moving Averages show a bullish trend, then a trader should look for a signal to sell. If Moving averages show a bearish trend – vice versa, a trader should look for a signal to buy. It turns out to be some kind of a countertrend strategy. More to that, the ADX indicator is usually added here to get a confirmation to enter the market. This combination of indicators allows to “catch” the completion of the current tendency ahead of time. Authors of the strategy believe that it can be used for working with any instrument but only on a daily timeframe. The article goes into the details of the “Daily Breakout and Moving Average” strategy – we’ll discuss how to trade against the dominating tendency and try to “catch” a breakout using simple indicators. How to customise indicators to trade by the strategy To use the strategy, you need to apply three indicators to a daily time frame. 1. Simple Moving Average (SMA) with a period of 20, building at the lowest prices and choosing Low. An arithmetical average that uses the lowest prices over the period instead of the closing prices. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted February 24, 2022 Author Share Posted February 24, 2022 How to Trade Hammer and Shooting Star Candlestick Patterns Author: Victor Gryazin Dear Clients and Partners, Hammer and Shooting Star are two popular candlestick patterns. Appearing on the chart, they precede a correction or trend reversal. These two patterns form at the local extremes of the price chart after a lengthy movement. Hammer The Hammer pattern indicates a market reversal upwards and forms at the price lows after a descending price movement. The pattern looks like a candlestick with a small body and a long lower shadow, at least three times as large as the body. The body of the candlestick closes near the highs, the upper shadow is tiny or lacking altogether. The candlestick may be of any colour, with or without a gap from the previous candlestick. A pattern with a white body will be a bit stronger. The candlestick resembles a hammer on a long handle, that is why the pattern got its name. The Hammer only matters after a serious decline, when the market is oversold. In a downward movement, the bears bump at a strong support level that lets the bulls find a foothold and try to reverse the market upwards. The long lower shadow of the candlestick demonstrates the power of the bulls and their readiness to fight back. If after the Hammer forms the bulls manage to hold the support level consisting of the pattern low and push the quotations upwards, renewing the high of the candlestick — then an upward correction becomes more possible, which means a good chance to buy. However, if the bears manage to drag the prices under the low of the candlestick, the signal to buy will be cancelled, so that the decline may continue. Shooting Star Shooting Star indicates a market reversal downwards, appearing at the highs of the price after an ascending movement. This pattern mirrors the Hammer: it consists of a candlestick with a small body and a long upper shadow, at least three times larger than the body. The body closes near the lows, the lower shadow is small or totally lacks. The candlestick may be of any colour, with or without a gap from the previous candlestick. A pattern with a black body will be a bit stronger. This candlestick looks like a shooting star (a meteorite burning in the atmosphere) that leaves a long trail. The pattern is significant only after a lengthy decline of the quotations, when the market is overbought. In an ascending movement, the bulls get stuck in a strong resistance level that gives the bears a chance to accumulate forces and push the price down. The long upper shadow of the candlestick demonstrates the power of the bears and their eagerness to reverse the market in their direction. If after a Shooting star the bears manage to hold the resistance level formed by the high of the pattern, and push the quotations down, renewing the low — then the descending correction becomes more probable and a good chance to sale appears. However, if the bulls manage to raise the quotations above the high of the pattern, the signal to sell will be cancelled, and the upward movement may return. Trading the Hammer and Shooting Star As long as these two are reversal patterns, they are to be looked for on the local lows and highs of the price chart in a descending or ascending trend, respectively. These patterns are not recommended for flats except for the cases when they confirm bounces off the borders of the price range. The patterns are good for trading shares, commodity futures, Forex currencies, etc. They work on larger timeframes by themselves and can be useful for trading intraday when applied alongside tech analysis. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
gargpriya Posted February 24, 2022 Share Posted February 24, 2022 Thanks it was great post Link to comment Share on other sites More sharing options...
RBFX Support Posted March 1, 2022 Author Share Posted March 1, 2022 Top 7 Major Currency Pairs on Forex Author: Victor Gryazin Dear Clients and Partners, In this article, you’ll find a short review of seven major currency pairs on the Forex market. These pairs are the most popular with traders and investors and are also characterised by high liquidity and low spreads. EUR/USD Euro (EUR) is a single European currency, which replaced all national currencies in the European Union in 1999. Given its status, EUR is reflective of the state of economic affairs in the European Union and very sensitive to the macroeconomic statistics from Europe. The EUR/USD pair is leading the Forex market: its daily trading volume is the biggest – almost 20% of the total trading turnover. The EUR/USD rate shows the current ratio between currencies of two global economic regions, the EU and the US. If the pair is growing, it means that EUR is getting stronger against USD, and vice versa. Economic and political news from these regions has a significant influence on the EUR/USD rate. At the very beginning of trading, EUR/USD was moving downwards and once reached the all-time low at 0.8200. For several years after that, the pair was steadily rising and set its all-time high a bit above 1.6000 in 2008. Later on, due to crises and some troubles in Europe, the pair dropped pretty much. EUR/USD is characterised by high liquidity, low spreads, and daily volatility of about 80 pips. GBP/USD British Pound (GBP) is the United Kingdom’s national currency. It’s one of the oldest currencies in the world, which approximately appeared in the twelfth century. As a result of the development of trading relations between Britain and its colonies, there emerged a need for a reliable currency to be used in settlements. GBP/USD shows the ratio between currencies of the United Kingdom and the United States. The pair accounts for 15% of the total currency market trading turnover. “Cable” is a foreign exchange slang term for GBP/USD. The term comes from the days of early telegraph cables that were laid between London and New York and were used to communicate currency quotes and other data. British Pound is the base currency, while USD is the quote currency. If the pair rises, it means that GBP is getting stronger against USD, and vice versa. The British Pound is considered a rather aggressive speculative currency, which creates high volatility in GBP/USD, about 100 pips a day. The pair movements often create a lot of false breakouts of support and resistance levels in the price charts. NZD/USD New Zealand Dollar (NZD) is the national currency of New Zealand. Its history goes back to the 1970s. In the “colonial” past, New Zealand Dollar was pegged to British Pound and was named New Zealand Pound. In 1967, the first New Zealand Dollars appeared and they were pegged to USD. New Zealand Dollar is classified as a commodity currency. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 8, 2022 Author Share Posted March 8, 2022 Divergence and Convergence in Trading: How to Use Signals Author: Victor Gryazin Dear Clients and Partners, This article is devoted to such terms as divergence and convergence as well as their use in trading. What is divergence Divergence is the instance when the price chat diverges with the used trading indicator. This looks as follows: in an ascending movement the price chart forms a new high that is higher than the previous one while the indicator shows a high that is no higher than the previous one. This inequality might mean that the bulls are losing power, so next thing a descending correction or even a reversal follows. A classic divergence consists of two highs of the price chart and two corresponding highs of the trading indicator. One of the most popular indicators for catching divergences is the MACD (Moving Average Convergence/Divergence). How to use convergence and divergence in trading A divergence or a convergence on the chart is considered a useful trading signal. Many traders fish for them to open or close their positions. To catch convergences/divergences, various indicators can be used, the most popular of them being the MACD, RSI, and Stochastic. Convergences/divergences can be traded on any highly liquid assets, on timeframes from H1 and higher. How to sell with divergences When a divergence appears, it gives a signal to sell: the quotes set a new local high but the indicator does not confirm it. However, quite often signals from divergences go against the current trend, giving a good reason for closing profitable positions because a reversal becomes too possible. As for opening new positions against the trend, here one needs to be extremely careful. Beginners should rather abstain from this. To open new positions, divergences during corrections are better. If there is a correction of a downtrend, and a divergence appears in the meantime, this is a good signal to sell. Positions should be open by the current trend Example of selling by a divergence On H1 of GBP/USD in an ascending correction the MACD signaled about a divergence.After a local high formed and the price reversed downwards, a selling position by the trend can be opened.Stop Loss is to be placed behind the last high, and Profit can be taken as soon as a strong support level is reached. Bottom line Divergence and convergence stand for the process of diverging/converging of the price chart and the trading indicator. These are good trading signals used for opening and closing positions. To make signals more efficient, the divergence/convergence should be used alongside other instruments of tech analysis. Before trading for real, practice on a demo account. Read more at R Blog - RoboForex Sincerely, RoboForex team 1 Link to comment Share on other sites More sharing options...
RBFX Support Posted March 10, 2022 Author Share Posted March 10, 2022 Why ChargePoint Shares Are Interesting Investment Author: Eugene Savitsky Dear Clients and Partners, Every year, more and more electric cars are sold all over the world. In 2021, 6.75 million electric cars were sold, i.e. 120% more than in 2020. If not for the shortage of semiconductors, the result would have been even more stunning. Today the overall number of sold electric cars in the world reaches almost 16 million, which is 8.5% of all vehicles. For comfortable driving, electric cars require lots of charging points. The demand for the development of charging stations network makes companies from this segment quite appealing for investments. The leader of the segment is ChargePoint Holdings Inc. (NYSE: CHPT). This is the corporation that this article is devoted to. What we know about ChargePoint Holdings This company, founded in 2007, makes equipment and software for charging electric vehicles. As checked on 31 January 2022, Charge Point Holdings manages the world’s largest network of charging stations – 174,000 stations in 16 countries. 51,000 out of them are situated in Europe. The company has carried out 13 rounds of investments, and the list of those eager to invest in its development features, among other companies, Daimler AG, BMW Siemens AG, Chevron Corp, Toyota Motor Corp, American Electric Power, Canada Pension Plan Investment Board, Singapore GIC, and Chevron Technology Ventures. Note the participation of Canada Pension Plan Investment Board and Singapore GIC. Such large and conservative trusts investing in the company means that they consider ChargePoint promising. Moreover, Canada Pension Plan Investment Board and Singapore GIC can now lobby the interests of the company in their home countries. This will not only let the American company increase its presence in the market but also step further away from the nearest rival – such as Blink Charging Co. (NASDAQ: BLNK). Tech analysis of ChargePont Holdings shares ChargePoint Holdings shares are trading in a downtrend, and here is an explanation of why it is normal. After the agitation of 2020, the shares of the corporation grew by 220% to 50 USD, and the capitalization reached 16.5 billion USD. However, the revenue at that time only reached 40 million USD. To compare: the capitalization of ROKU Inc. (NASDAQ: ROKU) is now 16.7 billion USD, while its quarterly income is 865 million USD, and the net profit is 23 million USD. The share price of ChargePoint Holdings did not stay at such levels for long and started descending gradually. The first strong support level at which market players started buying the shares was at 20 USD and stayed there for long. The quotations tested it 4 times, bouncing off each time and then rising by 30-85%. Now the resistance level of 15.5 USD should be noted, and a breakaway of this will be the first signal for possible growth of the price to 20 USD. And then, if the quotations manage to rise over 20 USD, the trend might reverse and start a long-term uptrend. This breakaway will mean a breakaway of the descending trendline. Closing thoughts ChargePoint Holdings is the leader in the market of electric car chargers. The growth in the sales of electric cars will provoke stable increased demand for the produce of the company. Currently, investments in ChargePoint Holdings can be regarded as long-term. The risk here is an increase in the interest rate of the Fed that will make the debts of the company also grow. For now, this is the only weak point. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 15, 2022 Author Share Posted March 15, 2022 How to Use Standard Deviation Indicator in Trading Author: Victor Gryazin Dear Clients and Partners, Today the article is devoted to the Standard Deviation indicator. It helps evaluate the dynamics of volatility of a financial instrument and find promising entry points. What the indicator shows Standard Deviation (STDev) is a trading instrument that shows how far the price of a financial instrument deviates from standard values of a certain period. It shows the deviation from a Simple Moving Average and thus helps to assess the change in the price volatility. The indicator conditionally belongs to trend ones: when it grows, this might mean the beginning of a new market trend. The higher the volatility and the more the price fluctuates from the average over the chosen period, the higher STDev values will be. And vice versa: if the quotes are stable, trading in a narrow price range, indicator values will fall to the lows. STDev can be used for trading on its own and alongside other indicators. Also, it is used inside more complicated indicators. For example, it can be found in a famous channel indicator Bollinger Bands: STDev helps to calculate the borders of the price range for the quotes. Standard Deviation appears in a separate window under the chart and has just one main line. Its values start with 0 and always remain positive, i.e. never drop under 0. The indicator does not show trend direction. The line will grow alongside the growth of volatility regardless of the market direction, equally when the quotes are growing and falling. How to install Standard Deviation Standard Deviation is built in the majority of popular trading platforms. To install it on the chosen price chart on the MetaTrader 4 and MetaTrader 5 platforms, go to the Main Menu. Your algorithm is: Main Menu – Insert – Indicators – Trend – Standard Deviation. You can customize the following settings: Period is the period for which the indicator will be calculated. By default, it is 20.Apply to: choose the price that calculations will be based on. By default, it is Close.MA method is the calculation method for the MA. By default, it is Simple.Style sets the appearance of the line. You can change its color, width, and representation method. Calculating Standard Deviation To calculate the indicator, use the following formula of statistic average square deviation: Standard Deviation = Sqrt (SUM ((CLOSE - SMA (CLOSE, N)) ^ 2, N) /N) Where: Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 17, 2022 Author Share Posted March 17, 2022 What Are Decentralized Finance Author: Andrey Goilov Dear Clients and Partners, Decentralized Finance (DeFi) are an alternative to the traditional banking sector. It includes blockchain apps and services that facilitate digital transactions between the participants directly, without intermediaries. As the crypto community thinks, the current financial system is obsolete, it lacks transparency, and is highly controlled. DeFi replaces traditional technology by open source protocols, granting access to financial services to anyone. The systems are maintained by the users. Meanwhile, the projects remain open and free of regulators that can block a transaction or deprive a user of access to a certain service. Services feature crediting, investments, and buying crypto. Thanks to DeFi, those institutions that used to process operations slowly and be prone to human mistakes, became automatic and safe. DeFi provides passive income from storing crypto and save money on transactions and credits. How DeFi is different from traditional finance To understand the idea of DeFi and their popularity, it is important to see the difference between it and centralized, or traditional, finance. Here are the main issues of the banking sector that DeFi solves today: Banking services are not available to everyoneFinancial services include hidden paymentsTransaction take time.Financial entities have work hours. In the classic banking sector, money is stores in banks and other financial institutions, the only goal of which is making money. Transactions are processed by third party services that charge fees for their intermediary functions. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 18, 2022 Author Share Posted March 18, 2022 RoboForex received the “Best Stocks Broker Global” award Dear Clients and Partners, We’re happy to share the good news: RoboForex is recognised as the "Best Stocks Broker Global 2022" by The London Trader Show Awards. It’s an annual conference in London, where market professionals gather to discuss different trends in financial instrument trading. The event also implies awarding brokers for their quality products and services. The winners are decided by a vote among experts, which is held throughout the month before the conference starts Over 12,000 instruments Stocks, Indices, and other popular exchange-traded and OTC assets.Best trading solutions Trading operations can be performed through reliable terminals, such as MetaTrader 4 and MetaTrader 5, as well as the R StocksTrader multi-asset platform.Charge-free additional materials RoboForex clients have access to a rich knowledge base and quick analytical tools. Moving forward is our style! The RoboForex team keeps a close eye on new trends in the industry and follows up on suggestions of the company’s clients and partners. A growing number of awards says that our products and services get better and meet the requirements of the market. Thank you for choosing RoboForex and helping us to improve. Each of the Company’s successes is our common victory! Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 22, 2022 Author Share Posted March 22, 2022 How to Trade Three Black Crows Candlestick Pattern Author: Maks Artemov Dear Clients and Partners, In candlestick analysis, all patterns can be divided into two groups – trend continuation patterns and reversal patterns. Today, the article is about the Three Black Crows pattern belonging to the second group. This is definitely not the most frequent pattern on the chart yet experienced traders who use candlestick analysis are well acquainted with it. How Three Black Crows pattern forms After a lengthy ascending impulse and a lot of purchases market players start closing their positions. The price forms a minor gap, and the first candlestick out of the three comprising the pattern opens above the previous closing price or at the same level. Then the second candlestick opens at the close level of the first one, and after it closes in its turn, the third candlestick opens. The opening price of the third one coincides with the closing price of the second one or belongs somewhere close to this level. Next, the trend reverses. Conditions for Three Black Crows There is a lengthy ascending movement of the quotes.The pattern forms at the resistance level.The three candlesticks are of roughly the same size.Three candlesticks successively forming on a smaller timeframe, form one big Engulfing candlestick on a larger one.Each next candlestick opens at the close level of the previous one or a bit higher.Shadows of the candlesticks are relatively small or totally lacking. Examples of using Three Black Crows This pattern can be used both alongside other means of analysis and on its own. Indicators act as additional filters that enhance trade efficacy. Example of selling by the pattern without indicators On the EUR/AUD chart, there has formed a Hanging Man.After that, at the top of the uptrend, there formed Three Black Crows.When the third candlestick closes, open a selling position at the fourth candlestick.Stop Loss is to be placed at the nearest high.Place the TP as 1:3 against the SL. In this case, the SL is 900 points and the TP 1, accordingly – 2,700 points.Later, when the price approaches the TP 1, the trader can place a TP 2 at the next support level.The trader can monitor the position and move the SL to the positive zone when necessary. Bottom line Before using Three Black Crows, the trader needs to study all of its conditions and peculiarities. The strategy is t be tested alongside other means of market analysis. For example, the trader can try out those indicators they are used to. This will help filter signals from Three Black Crows. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 24, 2022 Author Share Posted March 24, 2022 How to Use Correlation Calculator for Currency Pairs Author: Victor Gryazin Dear Clients and Partners, This overview is devoted to the issue of correlation of currency pairs, counting it with a special calculator, and using it in trading. What is currency pair correlation In finance, correlation is a statistical measurement of how two assets move one against another. In other words, this is the capability of one financial instrument follow another one. For example, gold and silver have high correlation. The idea of currency correlation represents the connections between currency pairs in Forex, the dependence of their movements one from another. Correlation demonstrates whether two pairs fluctuate similarly: the higher the correlation, the more in run are the two pairs. Currency pairs with strong correlation move somewhat in unison. Positive correlation Positive (or direct) correlation means that quotes go in the same direction – up or down. For example, strong positive correlation is demonstrated by EUR/USD and EUR/CAD. In the picture below it is obvious that the quotes of these pairs often go in one direction, and their charts look quite similar. How to calculate correlation indices To assess the correlation of two instruments, there is a special index. It is estimated in shares, or percent: 100% = 1 for positive correlation and -1 for negative. For calculating the index, Pearson’s formula is used. First, a set of values of both assets is formed – X and Y. Then average X and Y values are calculated. Next, they add up the product of the deviation of each set from the average and divide them by the product of the standard deviation. The values of the correlation index are between +1 and -1. The meaning of the values is as follows: 0 – no correlation. Currency pairs show no dependence on one the other.+1 – full positive correlation. Two currency pairs go in one direction, coinciding in movement size.-1 – full negative correlation. Two currency pairs go in the opposite directions, coinciding in movement size. Risks of using correlation in Forex It should be noted that correlation between two currency pairs is not a stable and constant factor. It can change with time. Different political and social crises, unexpected changes in credit and monetary policies can alter the normal correlation at any moment, so that it stops working normally. So, when using correlation in trading, the trader has to follow their risk management rules. Correlation can be used as some sort of a filter alongside classical fundamental and tech analysis. Before using correlation for real, practicing on a demo account is highly recommended. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted March 29, 2022 Author Share Posted March 29, 2022 How to Calculate ROA: Formula and Examples Author: Maks Artemov Dear Clients and Partners, This article is devoted to the market multiplier called ROA: what it is necessary for, how it is calculated, what peculiarities, drawbacks, and advantages it has, and how it can be used. What is ROA multiplier ROA (Return on Assets) is the multiplier that shows the profitability of assets. It expresses the ratio of the net profit and the average-weighted size of the assets, demonstrating the efficacy of using the capital of a company. It is expressed in percent. Calculation formula of ROA ROA = Net Profit / Average Assets Where: Net Profit is the net profit of the company over the calculation period. The latter is usually a year or a quarter.Average Assets is the average-weighted size of the assets of the company. Average Assets calculation formula: Average Assets = (Assets 1 + Assets 2) / 2 Where:Assets 1 is the size of the assets at the beginning of the calculation period.Assets 2 is the size of the assets at the end of the calculation period. Nowadays it is hardly necessary to calculate the ROA manually because this information is available in open sources. Peculiarities of ROA The ROA differs depending on the sector in which the company works and the nature of its business. For example, in services, the ROA will be higher than in the oil industry. The reason is the working capital that companies need for functioning and production. The more the company spends on development, the smaller ROA it will have over a calculation period. The intermediate conclusion is that comparison by the ROA can be accurate and correct only for companies working in one sphere of business. And the higher the ROA, the better for the company and its investors. Closing thoughts As many other multipliers, the ROA has its drawbacks and advantages. The multiplier can only give a prelim evaluation of the return on investments in the company, Optimum analysis should include several multipliers and financial reports of the company. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted April 5, 2022 Author Share Posted April 5, 2022 What It is Important to Know about NFT in 2022 Author: Andrey Goilov Dear Clients and Partners, Last year, when people started selling NFT for millions of dollars, these digital assets became a new investment option. Some investors remained skeptical, while others became quite confident that non-fungible tokens would change the market. For example, Twitter founder Jack Dorsey sold the tokenised version of his first personal tweet for $3 millions. For your information, he put up for sale a tweet saying “just setting up my twitter”, and the demand was insane. What is NFT crypto token Non-Fungible Tokens are unique blockchain-based digital assets the, among other things, have peculiar metadata. NFTs are coded by the same software that is used for digital currencies. They are sold and bought on digital platforms for crypto. The NFT technology is used for creating a unique digital certificate of a valuable thing, such as a painting, photo, music, video, and even real estate. Moreover, tokenising tangible assets makes buying them more efficient and fraud-safe. Current popularity of NFT crypto tokens is explained by how easy they are to buy. In December last year, there were NFTs sold for $12 billion. How NFT differs from crypto NFT and crypto have two obvious similarities: both are digital currencies and blockchain-based. However, digital money is fungible, and crypto exchange confirms it. Moreover, each altcoin remains valuable regardless of the platform it was bought on. For example, each BTC equals any other BTC. A less obvious common feature of NFT and crypto are speculation markets that create agitation around currency prices. The price of a token depends on demand: when the token is popular, the price grows, when the demand shrinks – the price follows it. Types of NFT In most cases, non-fungible tokens are created from tangible or non-tangible objects. Most popular options are virtual and physically existing real estate, sport events, and gaming accessories. Real estate Apartments and houses have unique furnishing and decoration, which means they satisfy the conditions of NFT. There are already examples of selling real estate as NFTs. Now NFT companies can gather money for building a new apartment complex by selling ownership to individual investors as NFTs. Then those investors will be able to sell their NFTs to next investors while the real estate is being built. Virtual real estate Metaverse is a digital reflection of the real world, and the demand for it is growing all too fast. An example of NFTs in metaverse is the Decentraland project. This is a three-D gaming world where gamers buy virtual land plots and build houses on them. Each land plot is a non-fungible token. Investors recommend keeping an eye on this market: virtual towns are built much faster than real ones. What perspectives NFT market has Flourishing growth provoked overwhelming skepticism of market experts, and many of them still insist on NFTs being a trivial bubble. However, these days such global brands as Nike or Microsoft keep experimenting with NFTs and the metaverse. Analysts declare that NFTs and crypto will eventually be a part of the metaverse, and NFTs will integrate in the virtual world much faster. This idea is confirmed by the strong concern of global brands about digital assets. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted April 12, 2022 Author Share Posted April 12, 2022 How to Trade Three White Soldiers Pattern Author: Victor Gryazin Dear Clients and Partners, This article deals with a candlestick pattern called Three White Soldiers: what it looks like, what signals it gives, how it forms, what types it has, and, of course, how it can be used in trading. How Three White Soldiers pattern forms Three White Soldiers is a reversal bullish candlestick pattern that predicts a change of a downtrend to an uptrend. This pattern can be encountered on price charts rather often. When the Three White Soldiers pattern appears, it gives a signal to buy. The pattern has a bearish counterpart called Three Black Crows that was previously described in our blog. The Three White Soldiers pattern consists of three white candlesticks with large bodies and almost no shadows. The pattern shows that the bulls have managed to capture the initiative and close trading sessions near the daily highs for three days in a row. Conditions for Three White Soldiers to form As long as this is a reversal pattern, it forms on the local lows after a descending movement. This can either be a reversal of a downtrend or the end of a correction in an uptrend. Three white candlesticks go one after another and have large bodies. Each next candlestick opens at the closing level of the previous one or a bit lower. The shadows of the candlesticks are short. Sometimes candlesticks in Three White Soldiers have no shadows at all: such candlesticks are called Marubozu and make the whole pattern stronger. The second and third candlesticks must be roughly of the same size. If the third candlestick is obviously smaller than the other two, this means bulls are weak. Types of Three White Soldiers There are two more candlestick patterns that also consist of three white candlesticks and resemble Three White Soldiers. These are the Advance Block pattern and the Stalled pattern; however, instead of giving a signal to buy, they warn the trader of the ascending momentum coming to an end. Advance Block If the second and third candlesticks of the Three White Soldiers have small bodies and long upper shadows, the pattern is called Advanced Block. As the name of the pattern shows us, the advance of the bulls was blocked and the bears fight back. The ascending impulse meets serious resistance, and it becomes extremely possible that the quotations will reverse downwards. This pattern is not good for buying because bulls turn out weak. If the trader has open buying positions, they should take the profit in them. Closing thoughts The reversal candlestick Three White Soldiers pattern forms after a downward movement and predicts an upward reversal of the quotes. It can be traded on its own or alongside tech analysis instruments and indicators. Before using the pattern for real, test it on a demo account. See more about candlestick patterns in our Blog. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted April 15, 2022 Author Share Posted April 15, 2022 RoboForex adds 7 new cryptocurrencies Dear Clients and Partners, RoboForex now offers 7 new cryptocurrencies to invest in: ALGOUSD, AVAXUSD, BNBUSD, LUNAUSD, MANAUSD, MATICUSD and UNIUSD. All these pairs are already available on the MetaTrader 4, MetaTrader 5, and R StocksTrader platforms. Investing in Cryptocurrencies with RoboForex means: 24/7 access to more than 30 crypto instruments BTC, ETH, BNB, LTC, BCH, LUNA, XRP, and others. BTC, ETH, BNB, LTC, BCH, LUNA, XRP, and others. A single account for all investments You won’t need another wallet or account at a crypto exchange. Conditions at the level of crypto exchanges The commission for cryptocurrencies on Prime accounts is 0.1%. Cryptocurrencies are a promising investment trend, which is chosen by a lot of clients at RoboForex. Therefore, we plan to continue adding new crypto instruments to our existing list and enhancing investment conditions. Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted April 19, 2022 Author Share Posted April 19, 2022 How to Trade Three Line Strike Candlestick Pattern Author: Victor Gryazin Dear Clients and Partners, This article is devoted to a candlestick pattern called Three Line Strike, its type, forming principles, and use in trading. How Three Line Strike forms The Three Line Strike candlestick pattern is not a frequent guest on price charts. It appears at the local high/low in an uptrend/a downtrend. The pattern consists of four candlesticks: the first three candlesticks have medium-sized bodies and the same colour, while the fourth one has a different colour, demonstrating a reversal, and a big body that fully covers the bodies of the first three candlesticks. Some sources describe this one as a trend continuation pattern, but the logics of candlestick analysis suggest that this is a reversal one. This article is based on the approach of a famous trader Thomas Bulkowski and his book “Encyclopedia of Candlestick Charts”. He considers this pattern to be a reversal pattern: according to his research, the price has a 84% probability of a reversal after this pattern appears on the chart. When the pattern appears on the chart, this means the current trend is getting weaker as it has encountered strong opposition. The large reversal candlestick that with its body covers up the three preceding candlesticks forecasts a correction that can later turn into a real reversal. Types of Three Line Strike Depending on the place where the pattern appears and the colors of its candlesticks, two types of the Three Lines Strike can be singled out – the bullish and bearish ones. Bullish Three Lines Strike It forms after an ascending price movement at the local highs of the chart. It consists of three white candlesticks with middle-sized bodies and a large black candlestick, whose bode covers all the three preceding ones. The large black candlesticks means that bears have captured the initiative and are ready to counterattack. Further decline of the quotes means the beginning of a descending correction. The decline should be confirmed by the price falling below the last low of the bearish candlestick of the pattern. Bearish Three Line Strike It appears in a descending movement at the local lows of the chart. It consists of three black bearish candlesticks with medium-sized bodies and one white large candlestick, whose body covers up the bodies of the three preceding candlesticks. The large white candlestick means that bulls have managed to stop bears and are ready to reverse the quotes. Further growth of the price leads to the beginning of an ascending correction. The ascending movement should be confirmed by growth of the quotes above the high of the last white candlestick. Bottom line The Three Lines Strike pattern forms after a descending or an ascending movement and forecasts a reversal of the quotes. In certain sources, this pattern is considered a trend continuation pattern, yet Thomas Bulkowsli in his research has demonstrated that the probability of a reversal after this pattern appears is 84%. The pattern can be used for trading either on itself or alongside other instruments of tech analysis and indicators. Before using the Three Lines Strike for real, make sure you back-test it. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
RBFX Support Posted April 21, 2022 Author Share Posted April 21, 2022 Richard Wycoff Trading Method Author: Timofey Zuev Dear Clients and Partners, As trading kept developing, various methods and instruments for it also got to perfection. And today, when humanity is enjoying the internet, trading has become available to anyone, even if they do not have money. However, getting started is the hardest part for any beginner. Why so? The internet is full of methods, ways, strategies, indicators, and advisors that, unfortunately, do not always work properly. So, the beginner gets lost in the variety of methods and trading strategies, for getting about the basics that trading is based on. The Wycoff method used to be popular in the times of the trader himself because it was "different". Richard Wycoff never listened to analysts, experts, economists, and the like because at that time analysis was based on bare charts, nothing else. Wycoff, nonetheless, was sure that the price was moved by all market participants, so the future of the price was "in people's minds". According to Wycoff, the trader must be some sort of a detective and calculate, based on the chart and volumes, who is controlling the market (the bulls or bears), after which they could attack this or that instrument. Psychology also plays its part here: for people, it is much easier to do their job when they are interested. And when the job becomes mere routine, people lose grip, so their productivity suffers This approach made the Wycoff method popular nowadays, though no one apparently uses it "in the virgin form". However, many methods used by professional traders all over the world are based on Wycoff's system. It is applicable to all trading instruments: stocks, currencies, options, futures, etc. As for timeframes, the method is very good for intraday traders. Main principle of the Wycoff trading method The main task of the trader is to make conclusions about how their trading instrument (stocks, option, currency) will behave in the fight of demand and supply. To do it, the price chart and volumes are quite enough. Then the trader finds possible tops (for a bullish trend) and bottoms (for a bearish trend). Also, make notice of correctional price movements because trading consists of certain cycles of purchases and sales. One cycle (wave) will last while new participants join in. As soon as the cycle is worn out, a reverse process starts, and the price goes in the opposite direction. All this can be seen on the chart. As the creator of the method used to say, if you master it once, you will need a few minutes to make a forecast of future price movements. You can find more about the system in a book by J.Hutson "The Wycoff Method". It is available on the internet. Read more at R Blog - RoboForex Sincerely, RoboForex team Link to comment Share on other sites More sharing options...
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