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Vlad RF

RoboForex Representative
Messages
243
How to Filter Stochastic Signals?

Author: Andrey Goilov

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Dear Clients and Partners,

We already have two articles about the Stochastic Oscillator describing in detail the indicator itself and the ways of trading by it. This is an oscillator, i.e. it demonstrates how much the price has fluctuated from the average; it works great in flats.

If there is a strong, directed trend, such an indicator will give a lot of reversal signals, making the trader buy in the falling market and sell in the growing one. Hence, traders do not normally use Stochastic by itself: instead, they add other signals to it, enhancing the work of the indicator significantly.

Today, I will try to step beyond the boundaries of normal trading by the instrument and show you how to filter its signals in order to make money on lengthy trends.

Some history

The necessity to track indices appeared as early as the 20th century. In 1925, at the International Conference of Labor Statisticians, certain rules of data collection, processing, generalizing, and presenting were adopted. The importance of such information was acknowledged by all the participants of the conference.

Also, at the Conference, a universal approach to planning and regulating price policies of countries was worked out. Practically, these were the first steps towards globalizing international markets.

The standards created that time were revised three times later: in 1947, 1962, and 1987. In 1962, at the tenth Conference, the term PPI was finally adopted. This is exactly the term used today.

Moving Average

I guess, the best way to improve signals from Stochastic is to add a Moving Average to it or several such lines. This combination lets the trader work by the current trend.

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For trading, an H4 or H1 chart of any currency pair will be good. Add an MA with period 75: if the price is above the line, we look for a signal to buy from Stochastic. If the price breaks through the MA downwards, the trader needs a signal to sell from Stochastic.

A signal to buy

Let us have a look at an example with EUR/JPY. We see the price go above the MA(75), indicating an uptrend. In this case, we are not interested in signals to sell, because the Stochastic values may stay above 80 for a long time and quite often perform crossings for sale. Such signals must be ignored.

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The best signal will be a decline of the Stochastic values below 20 and crossing of this area. In the marked area, there were two such signals, and both times the market kept growing.

A Stop Loss in such a case must be placed 35-55 points away from the MA. As for a Take Profit, place it at least at the local high because the trend is ascending, and the price will easily renew it.

However, if the price breaks through the MA downwards and the signal lines of Stochastic cross in favor of buying, wait for the price to get above the MA again and buy with the same risk of 35-55 points away from the MA.

Bottom line

The Stochastic Oscillator gives too frequent entry and exit signals by the crossings of its signal lines. To improve those signals, you can add other indicators, combine Stochastic with graphic patterns, or check for the confirmation of signals on different timeframes.

Adding a Moving Average to the chart alongside Stochastic will let you trade the trend only. If you add a graphic pattern, you will avoid preliminary signals from the pattern itself. Combining various TFs gives you an extra Stochastic signal from a smaller TF.

As you see, there are plenty of trading options with Stochastic. Just test them all on a demo account and always follow your money management rules, especially when you trade real money.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

RoboForex Contest

RoboForex Representative
Messages
73
Dear traders!

This week, the ContestFX project is waiting for everyone to participate in the following competitions:

The gathering pace 127th competition of "Demo Forex".
The 331st competition of "Week with CFD" has just started.
464th competition of "Trade Day" will start on 13.10.2021 at 12:00.
380th competition of "KingSize MT5" will start on 14.10.2021 at 20:00.

If you haven't become a participant in our competitions yet held on demo accounts - go through a simple registration procedure on our website, and get connected to any of your desired competitions in just a couple of mouse clicks.

Good luck to all traders!

Sincerely,
RoboForex Contest
 

Vlad RF

RoboForex Representative
Messages
243
How to Work with Sources of Information and Avoid Falling A Victim to Market Panic

Author: Vadim Kovalenko

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Dear Clients and Partners,

In the era of the Internet and electronic media when information is available to anyone, it’s become easier to fall a victim to a pre-planned information attack. In this article, I want to tell you how to avoid this “doom” when analysing financial news.

When you’re overcome with market panic, you can take wrong investment decisions, which will make you lose potential profit or, which is worse, suffer losses.

From time to time, news media misrepresents a real picture; however, even in these cases, one can eliminate the unlikeliest pessimistic or optimistic scenarios. To be able to do this, one has to be well informed about basic concepts of the nature and special aspects of provided publicly available economic information.

Where should we start?

At first, you have to understand: ordinary people don’t have and will never have an amount of data available to civil servants just because some part of this data is highly classified information. Therefore, one should rely only on public sources.

Economic data implies a set of indicators that display the national economy state or show any changes in all its components. When performing market analysis on one’s own, it is recommended to use only documentary information sources.

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Types and sources of information

There are a lot of economic data classifications but we’ll talk only about the most important ones. The data is divided into:
  • Forecasts: short-, mid-, and long-term.
  • Planned: can be found in the economic calendar.
  • Accounting: financial reports, national statistics.
If you’re a rookie in analysing economic indicators, it is recommended to stay away from ready analytical reviews because they are already distorted by the author’s subjective perception. It’s much better to work with primary data. Of course, in the very beginning, you may draw false conclusions but they will be your personal mistakes you’ll learn from. However, sometimes you should read opinions given by popular financial analysts to have a second opinion.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

Vlad RF

RoboForex Representative
Messages
243
How to Trade Linear Regression Indicator

Author: Andrey Goilov

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Dear Clients and Partners,

The Linear Regression Indicator was designed and presented by Gilbert Raff. It happened quite recently, in the 1990s. So, this instrument can be called a rather new one as long as the majority of indicators have been created in the 1970s.

The Linear Regression Indicator, or LRI, consists of three lines. These lines show the high, medium, and low of the current price movement, forming a price channel. The upper and lower borders of the channel demonstrate the extremes to which the price has deviated from the middle line.

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You can see that the indicator somewhat resembles the Bollinger Bands, which consists of a floating channel on the chart that is from time to time broken through by the price up or downwards, after which the price returns to the medium level.

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Regardless of the fancy name, the LRI is quite simple to use.

What is the essence of the LRI?

As I have already mentioned, the Linear Regression Indicator consists of three lines.

First, the middle line is drawn based on the price levels; it is also known as the trend regression line.

The indicator adds two lines to the first one at equal distances from it. Traders say those are quality support and resistance levels, between which the price will be going for some time.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team
 

Thiagoibj

Recruit
Messages
14
ECN ACCOUNT WITH SPREAD OF 75 PIPS (WHERE IS THE LIQUIDITY???)


Look at it answer to my case: At 22:00:00 server time (EET), the Broker received a quote on the financial instrument EURNZD from their Liquidity Provider with a spread of 154 points. Since the Company has an unofficial limitation of the maximum spread (in this case, 75 points), clients were given a quote with a spread of 75 points (1.70679 / 1.71429).

ECN ACCOUNT WITH SPREAD OF 75 PIPS (WHERE IS THE LIQUIDITY???)

DO YOU THINK YOU WILL MAKE MONEY WITH A BROKER THAT MAKE SPREAD OF 156 - 75 PIPS ON ECN ACCOUNT?
 

RoboForex Contest

RoboForex Representative
Messages
73
Dear traders!

This week, RoboForex's project called ContestFX invites you to the following competitions:

The 127th competition of "Demo Forex" has entered the third week.
The 332nd competition of "Week with CFD" has just started.
465th competition of "Trade Day" will start on 20.10.2021 at 12:00.
381st competition of "KingSize MT5" will start on 21.10.2021 at 20:00.

It's easy to start trading operations in the Forex market - you just need to become one of the winners in any of our competitions, receive prize funds to your trading account, and use them to prove your worth as a pro trader.

We wish good luck to all of you!

Sincerely,
RoboForex Contest
 

Thiagoibj

Recruit
Messages
14
Go out of this broker!! They are scammers!! They manipulate the prices!! Ecn account with no liquidity!





Look at it answer to my case: at 22:00:00 server time (eet), the broker received a quote on the financial instrument eurnzd from their liquidity provider with a spread of 154 points. Since the company has an unofficial limitation of the maximum spread (in this case, 75 points), clients were given a quote with a spread of 75 points (1.70679 / 1.71429).




Ecn account with spread of 75 pips (where is the liquidity???)


Do you think you will make money with a broker that make spread of 156 - 75 pips on ecn account?
 

Vlad RF

RoboForex Representative
Messages
243
RoboForex wins the “Best Affiliate Programme (Global)” award

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Dear Clients and Partners,

In autumn 2021, RoboForex received the “Best Affiliate Programme (Global)” award at one of the world’s leading events in the sphere of Forex and finance, “Global Forex Awards 2021 – Retail”. RoboForex’s Affiliate program was highly appreciated by users and got the most votes.

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RoboForex would like to thank everyone who voted for their trust. Such results inspire us and give us a reason for further development and improvement. RoboForex strives to provide traders with the most favourable trading conditions, including the ones that attract new clients to the company. Now it’s time for you to assess them:
  • 50% of the company’s revenue.
  • No restrictions on deals and payouts.
  • Daily payouts to your account.


Sincerely,
RoboForex team
 

Thiagoibj

Recruit
Messages
14
Go out of this broker!! They are scammers!! They manipulate the prices!! Ecn account with no liquidity!





Look at it answer to my case: at 22:00:00 server time (eet), the broker received a quote on the financial instrument eurnzd from their liquidity provider with a spread of 154 points. Since the company has an unofficial limitation of the maximum spread (in this case, 75 points), clients were given a quote with a spread of 75 points (1.70679 / 1.71429).











Ecn account with spread of 75 pips (where is the liquidity???)


Do you think you will make money with a broker that make spread of 156 - 75 pips on ecn account?
 
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