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RoboForex Contest

RoboForex Representative
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26
Dear traders!

This week, as usual, the ContestFx project invites everyone to whom it might seem interesting to take part in the following competitions:

The 114th competition of "Demo Forex" and 275th competition of "Week with CFD" just kicked off.
408th competition of "Trade Day" will start on 09.09.2020 at 12:00.
325th competition of "KingSize MT5" will start on 10.09.2020 at 20:00.

Let us remind you that in case you win our demo competition, we will deposit real prizes on your real trading account. This will let you start trading effectively in the Forex market and make profits without investing your own funds.

Good luck to all traders!

Sincerely,
RoboForex Contest
 

Vlad RF

RoboForex Representative
Messages
138
Trading with the Donchian Channel Indicator

Author: Victor Gryazin



Dear Traders,

In this review, we will get acquainted with a quite simple and useful indicator called Donchian Channel. This is the indicator that the famous Turtle trend strategy is based on.

How does the Donchian Channel work?

The Donchian Channel is quite a simple channel indicator reflecting the borders of price fluctuation in a preset time interval. The indicator was named after its creator, a famous exchange trader of Armenian origin Richard Donchian.

The indicator looks like a price channel with an upper and lower borders, inside which the quotation fluctuate. To draw a border, the Donchian Channel calculates the latest extremes, taking the highest high and the lowest low of the period.

The indicator acquired popularity after a trend strategy called Turtle Trading System was based on it. This famous strategy by Richard Dennis uses a breakaway of the Donchian Channel’s border with the period of 20 days as the entry point. A group of beginner traders demonstrated good results following this strategy.

In essence, the Donchian Channel may be called an indicator of volatility because it is based on calculating the price range based on recent highs and lows. The wider the channel, the higher the current volatility; when the channel narrows down, the volatility of the instrument temporarily decreases.



Installing and setting up the indicator

The Donchian Channel is included not in every trading terminal; hence, you might need to download a file of the indicator and set it up in your terminal. You can download the indicator for MetaTrader 4 by a link in the end of this article.

To install the indicator, copy the file to the Indicators folder. Via the Main Menu, open File/Open data catalog/MQL 4/Indicators, copy the file, and restart the terminal.

As a result, the Donchian Channel will appear on the list of user indicators and will become available for the charts of your instruments: open Insert/Indicators/User/Donchian Channel. Or just left-click the indicator in the Navigate window and drag to the chart.

The calculations are quite simple

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

Vlad RF

RoboForex Representative
Messages
138
Heiken Ashi + ADX + Stochastic Trading Strategy

Author: Andrey Goilov



Dear Traders,

Today, we will speak about another trading strategy meant for minute charts, with a potential profit of 10-15 points per trade. The characteristic feature of this strategy is the use of the ADX indicator on small timeframes: normally, it is used on daily charts, as its author advised. However, here, instead of normal Japanese candlesticks, we use Heiken Ashi, which is, again, rather unusual for a simple trading strategy.

What indicators do we need?

To set up the strategy for decent work, we only need three indicators.

Heiken Ashi

First and foremost, install the Heiken Ashi indicator. Many traders say it demonstrates current market trades immaculately. This is traditionally a user indicator, not included in most trading terminals. When you add the indicator to the chart, candlesticks turn red and green.



Red candlesticks mean a downtrend, and many traders recommend selling on such candlesticks only. Conversely, when the indicator turns green, look for buys. In the simplest strategies, traders add the Stochastic Oscillator to confirm the signals of Heiken Ashi.

ADX

The second indicator we will need is ADX, or Average Directional Moving index, which also shows the current market trend. According to the author, if ADX values grow, this indicates a strong trend, while low values signal bout a flat.



ADX indicator Be careful: when the indicator values grow, this just means there is a trend in the market but we do not know whether it is bullish or bearish.

Stochastic Oscillator

The third indicator is the Stochastic Oscillator with the parameters (5, 3, 3) that in many strategies, gives good entry signal by the crossing of its signal lines. Being an oscillator, this indicator shows how far the price has fluctuated from its average values.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

RoboForex Contest

RoboForex Representative
Messages
26
Dear traders!

This week, RoboForex's project called ContestFx will continue with these competitions on demo accounts:

The 114th competition of "Demo Forex" is gaining momentum.
The 276th competition of "Week with CFD" has just recently started.
409th competition of "Trade Day" will start on 16.09.2020 at 12:00 .
326th competition of "KingSize MT5" will start on 17.09.2020 at 20:00.

If you're interested in our competitive competitions, then simply go through a simple registration procedure and get access to any competitions of your choice in just a couple of mouse clicks. In case you won the competition and get your name on the leaderboard, then as a reward, we will deposit the prize money to your real account that will help you to kick-off effective trading on the Forex market.

Join us!

Sincerely,
RoboForex Contest
 

Vlad RF

RoboForex Representative
Messages
138
Tech Analysis Patterns: How to Trade Diamond?

Author: Victor Gryazin



Dear Traders,

In this review, we will get acquainted with trading the Diamond. This is a reversal tech analysis pattern promising a correction or a reversal of the current trend.

How does a Diamond form?

The Diamond is a quite rare reversal pattern, which you do not often come across on charts – perhaps this is another reason why it is called like a precious stone. The pattern forms at the highs/lows after the preceding up- or downtrend.

What does the pattern look like? We can say that on the chart after an impulse ends, the price consolidates, and two triangles sharing one base form. First, a diverging triangle appears, then a converging one follows suit (symmetrically). Together they form a pattern that looks like a rhombus, or diamond.

Ideally, the pattern looks like a clear symmetrical diamond shape. But let us remain realistic: even real diamonds have flaws, scratches, and cloudy spots. With the Diamond pattern, it is the same: in real market conditions, its borders may be quite asymmetrical, a bit shifted or extended.

The most important thing here is for the pattern to remain at the extremes and within the borders of two adjacent triangles, be they imperfect. If you have any doubts with a Diamond on a normal chart, try switching to the linear version: it will show the borders of the pattern more precisely.



Choosing a timeframe for trading

A Diamond may form on any timeframe, even the smallest one. For trading intraday, you may use M5, M15, or H1. However, keep in mind that they are considered less reliable than larger timeframes.

The larger the timeframe, the more probable it is that the pattern will be worked off. The main timeframes for trading this pattern are: H4, D1, and W. Naturally, on larger timeframes, the pattern takes rather long to form but promises more significant realization. As soon as the pattern is complete, you may start trading.

How to trade Diamonds?

To trade the pattern, you need it to be complete; I advise you against trading inside a Diamond. If the Diamond formed on the highs, this means the uptrend is over, so you may sell. Conversely, if the pattern forms at the lows, after a downtrend, you may expect an upward reversal and get prepared for sales.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

Vlad RF

RoboForex Representative
Messages
138
RoboForex adds new MetaTrader 5-based accounts



Dear Clients and Partners,

We’ve expanded the opportunities of working with the new-generation trading platform MetaTrader 5. From now on, you can trade on RoboForex Prime accounts with the exceptional market conditions.

Prime accounts – trading on the best market conditions

  • Floating spread – from 0 pips.
  • Leverage – up to 1:300.
  • Perfect for automated scalping.
Read more


MetaTrader 5

Terminal for modern trading

  • Access to popular trading instruments
    Trade assets in different segments of financial markets, such as Forex, Cryptocurrencies, Metals, CFDs on US stocks, indices, and oil.

  • Trading robots
    Create and test trading robots or buy ready solutions from the built-in platform shop.

  • Flexible trading system
    Choose a more convenient position accounting system: netting or hedging.

  • Fast execution
    MetaTrader 5 is a 64-bit multi-thread platform, which provides fast order execution and comfortable testing of trading strategies on historic data.
Get access to all advanced features of MetaTrader 5 and choose the most suitable trading conditions with one of the account types at RoboForex.


Sincerely,
RoboForex team
 

Vlad RF

RoboForex Representative
Messages
138
What Is Price Action Analysis?

Author: Timofey Zuev



Dear Traders,

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

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

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

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

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

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

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

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

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

RoboForex Contest

RoboForex Representative
Messages
26
Dear traders!

This week, the ContestFx project, as always, continues with the following exciting competitions:

The 114th competition of "Demo Forex" has entered the third week.
The 277th competition of "Week with CFD" just recently started.
410th competition of "Trade Day" will start on 23.09.2020 at 12:00.
327th competition of "KingSize MT5" will start on 24.09.202 at 20:00.

After going through a simple registration process, all our contests become available in just a few mouse clicks. You can start trading on the Forex market without investing your financial savings by utilizing the prize money you received as a reward.

We are waiting for everyone to register and wish you good luck!

Sincerely
RoboForex Contest
 

Vlad RF

RoboForex Representative
Messages
138
What is Slippage in Forex?

Author: Victor Gryazin



Dear Traders,

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

What is slippage and how does it appear?

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

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

Positive slippage

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

Negative slippage

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

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



Is the broker to blame for slippage?

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

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

Vlad RF

RoboForex Representative
Messages
138
Unemployment Rate, and How to Use It in Forex

Author: Andrey Goilov



Dear Traders,

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

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

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



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

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

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

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

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

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 
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