Discuss RoboForex.com

[Vlad RF]

How to Trade “Tasuki Gap” Pattern?

Author: Victor Gryazin

Dear Clients and Partners,​

In this article, we’ll discuss the rules and methods of trading the “Tasuki Gap” pattern. You won’t find it very often, but it’s a quite strong pattern of trend continuation from the candlestick analysis.

How the “Tasuki Gap” pattern is formed

The “Tasuki Gap” candlestick pattern is formed during an ascending or descending tendency and predicts its further development. The pattern consists of three candlesticks: the first two have the same body colour with a price gap between them; the third candlestick has an opposite body colour and returns the price into the gap (between the first two candlesticks).

The first two candlesticks of the pattern show the trend direction and confirm its strength – the gap between them is evidence of that. The third candlestick, which is closed in the opposite direction, is a correction towards the previous movement. This candlestick shouldn’t eliminate the gap with its closing price – if it happens, trading the pattern is not recommended.

Bearish Tasuki Gap

“Upside Tasuki Gap” is formed during a descending tendency: bears dominate the market and believe that the decline will continue. The black bearish candlestick appears on the chart. Later, under the influence of active sales on the market, the next candlestick is opened with a gap to the downside and closed with a black body candlestick.

After that, the price is forming an ascending correction, during which a white bullish candlestick appears and makes the price return to the gap. This gap is now a resistance level. Here, bears start selling again and if bulls couldn’t close the session above the gap, then bears are very likely to resume the downtrend and update the local low.

Recommendations for trading the “Tasuki Gap” pattern

When trading this pattern, one should pay attention to the following:

• “Tasuki Gap” must be formed within an ascending or descending tendency, it’s better not to trade it inside a sideways channel (flat).
• The pattern’s third candlestick mustn’t close the gap completely with its body. In this case, a trading signal is cancelled.
• The pattern materialization probability increases in the combination with price patterns, support and resistance levels, signals of trading indicators.
• It is recommended to use H4 of longer timeframes.

Closing thoughts

The “Tasuki Gap” candlestick pattern appears during an ascending or descending tendency (bullish or bearish respectively) and predicts its further development. Excellent addition to the pattern is technical analysis.

Before using the pattern in real trading, one should learn past statistics and historic records and practice on a demo account.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project will, as usual, continue with the following exciting competitions on demo accounts:

The 127th competition of "Demo Forex" is approaching its end.
The 333rd competition of "Week with CFD" has just kicked off.
466th competition of "Trade Day" will start on 27.10.2021 at 12:00.
382nd competition of "KingSize MT5" will start on 28.10.2021 at 20:00.

We remind you that to participate in our competitions, it is enough to go through a simple registration procedure, and then you'll have the opportunity to take part in any of them in just a couple of mouse clicks.

We're looking forward to your joining in and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Use the Current Ratio Multiplier for Stock Analysis

Author: Maks Artemov

Dear Clients and Partners,​

The Current Ratio multiplier (or Liquidity Ratio) shows a company's or corporation’s ability to pay short-term obligations due within one year. The multiplier is calculated as Current assets/Current liabilities for a particular period of time.

Current Ratio is used by investors, companies’ top management and analysts for both assessing investment attraction of an organization and practical understanding whether a company can satisfy its current debts and other payables.

When a company’s activities result in fewer funds on its balance sheet than required for the performance of financial obligations to creditors or suppliers, then the current liquidity implies the impossibility of debt compliance.

If the situation is reversed and a company has more money on its balance sheet than necessary for paying all its debts and liabilities, its profit significantly decreases because a company keeps the money on its accounts instead of realizing what is earned. In a perfect world, the current liquidity of a company should be balanced.

Calculating the Current Ratio multiplier

Like all other multipliers, Current Ratio for public companies can be found on the Internet, so there is no need to calculate it manually. All you have to do is specify a required value in the stock screener and get the results.

An example from a popular resource finviz.com:

However, for illustrative purposes, let’s look at the Current Ratio calculation formula:

Current Ratio = Current assets / Current liabilities

• Current assets are the funds involved in a company’s operations and activities that are liquidated during the year (12 months). An increase in assets ratio contributes to a company’s capital turnover. A sudden increase in operating assets may be caused by ineffective activities of a company and lead to, for example, a surplus of products at stock. According to another term, Current assets are just short-term assets because of their quick usage.
• Current liabilities are a company’s total liabilities to be liquidated within 12 months using current assets only.

The result of this operation (Current assets / Current liabilities) is Current Ratio.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex: changes in trading schedule (revert to Standard Time and Unity Day)

Dear Clients and Partners,​

We’re informing you that on October 31st, 2021, European countries will revert from Daylight Saving Time to Standard time. In the USA, the same will happen on November 7th, 2021. As a result, there will be some changes in the trading schedule*.

In addition to that, due to the public holiday in Russia, Unity Day, USDRUB will be traded according to the changed schedule on November 4th, 2021.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on Metals (XAUUSD, XAGUSD)

• From 1 to 5 November 2021, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 12:05 AM - 10:59 PM.
• Starting 8 November 2021, Metals will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on US indices

• From 1 to 5 November 2021, trading on CFDs on US indices will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 02:00 AM - 10:15 PM.
• Starting 8 November 2021, CFDs on US indices will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on oil (Brent and WTI)

• From 1 to 5 November 2021, trading on CFDs on Oil will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 02:00 AM - 10:15 PM.
• Starting 8 November 2021, CFDs on Oil will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on US stocks

• From 1 to 5 November 2021, trading on CFDs on US stocks will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 03:31 PM - 09:59 PM.
• Starting 8 November 2021, CFDs on US stocks will be available for trading within the operating range of the contract specifications.

Schedule for trading on USDRUB

• Starting 1 November 2021, the USDRUB currency pair will be traded according to a new schedule.
  Trading session (server time): 09:00 AM - 5:30 PM.
• 4 November 2021 - no trading.
• 5 November 2021 - trading starts as usual.

R StocksTrader platform

Schedule for trading on US stocks, CFDs on US stocks, ETFs, and CFDs on ETFs

• From 1 to 5 November 2021, trading will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 03:30 PM - 10:00 PM.
• Starting 8 November 2021, the above-mentioned instruments will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on US indices (US30, US500, NAS100)

• From 1 to 5 November 2021, trading will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 09:00 AM - 10:00 PM.
• Starting 8 November 2021, the above-mentioned instruments will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on Metals (XAUUSD, XAGUSD)

• From 1 to 5 November 2021, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 12:05 AM - 10:59 PM.
• Starting 8 November 2021, Metals will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on oil (BRENT.oil and WTI.oil)

• From 1 to 5 November 2021, trading on CFDs on Oil will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 02:00 AM - 10:15 PM.
• Starting 8 November 2021, CFDs on Oil will be available for trading within the operating range of the contract specifications

cTrader platform

Schedule for trading CFDs on Metals (XAUUSD, XAGUSD)

• From 1 to 5 November 2021, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 12:05 AM - 10:59 PM.
• Starting 8 November 2021, Metals will be available for trading within the operating range of the contract specifications.

Schedule for trading on USDRUB

• Starting 1 November 2021, the USDRUB currency pair will be traded according to a new schedule.
  Trading session (server time): 09:00 AM - 5:30 PM.
• 4 November 2021 - no trading.
• 5 November 2021 - trading starts as usual.

Please, note that on 5 November 2021, trading on all instruments in all platforms will be closed at 11:00 PM server time.

In addition to that, from 1 to 5 November 2021, the bank rollover time will be from 10:45 PM to 11:15 PM server time. This might lead to short-term interruptions in quoting and significant widening of spreads.

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

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

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

In the first week of November, the RoboForex company's project called ContestFX is waiting for everyone to participate in the following competitions:

The 128th competition of "Demo Forex" and 334th competition of "Week with CFD" have just started.
At 12:00, November 3rd, 2021, the 467th competition of "Trade Day" begins.
At 20:00, November 4th, 2021, the 383rd competition of "KingSize MT5" begins.

All of our winners receive funds as a reward to their real trading accounts and they can use them to perform trading operations in the Forex market without investing their own savings required as an initial deposit.

Don't miss your chance to be one of them!

Sincerely,
RoboForex Contest

 

[Vlad RF]

What are Forex Cent Accounts Needed For?

Author: Victor Gryazin

Dear Clients and Partners,​

In this article, we will review cent accounts and what they are needed for. Such accounts let beginners dive in real trading with minimal expenses and experienced traders – test their trading strategies or robots, as well as some psychological relief.

What is a cent account?

A cent account in Forex is a trading account provided by the broker; the balance is measured in the base currency (US Cent, EU Cent, etc.) denominated 100 times. Trading conditions on cent accounts are almost the same as on real ones. You only need to deposit it for 10 USD to get a 1,000 US Cent deposit.

The Cent account type is widely used for market beginners and those traders who practice or want to test a certain strategy in real market conditions with smallest expenses.

A cent account is always a transition point between a demo account and a classic one, the first step to real trading with a decreased risk. If, for example, a trader wants to work with a capital of 10,000 USD, they only need 100 USD to open a 10,000 US Cent account.

What are cent accounts used for?

Whether one needs a cent account or not, this is always for each trader to decide. One needs it for practicing for real with minimal risks, another – as an account for making unsystematic emotional trades. Let us focus on the main reasons for using cent accounts.

Test trading

This must be the most widespread reason for using cent accounts. Beginners practice their skills on demo accounts, but as long as money is virtual there, they do not include one of the main aspects of trading – the psychological one. Hence, for further development, they need to switch to a real account, and a cent one is a great choice. It allows getting real trading experience and check the working ability of their trading system with minimal expenses.

They can just keep in mind the capital that they plan to use in the market. For example, to check the abilities of a capital of 5,000 USD, they can open a cent account and deposit it for 50 USD to get a 5,000 US Cent capital. As a result, the trader can fully test their strategy on this deposit, risking 50 USD at worst. However, their profit will also be in cents, not in dollars.

In such cases, the trader’s task is not to make a large profit but to train their skills and develop psychological stability. After the trader makes sure their trading is stable (they get a positive result over a reporting period: quarter, semester, year), they may switch to a real trading account.

Psychological vent

Another reason for using cent accounts is making emotional trades that go counter your trading rules. For example, you see on the chart that after some important fundamental news there is a strong active movement. You are sure that a mighty impulse will follow but your trading system does not give any signals in this direction. You want to open a position but this is against your rules, right?

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project offers you the following competitions on demo accounts:

The 128th competition of "Demo Forex" is running its second week.
The 355th competition of "Week with CFD" has kicked off today.
468th competition of "Trade Day" will start on 10.11.2021 at 12:00.
384th competition of "KingSize MT5" will start on 11.11.2021 at 20:00.

If you want to participate in our competitions, just go through a simple registration procedure only once. With the funds received as a prize, you can perform trading operations on the Forex market without investing your own financial resources required as an initial deposit.

We wish good luck to all of you!

Sincerely,
RoboForex Contest

 

[Vlad RF]

Company Makes a Spin-Off: What Does Investor Do?

Author: Maks Artemov

Dear Clients and Partners,​

The stock market is full of various events and phenomena, and one cannot always keep an eye on all of them. There are those that must be tracked anyway; you must know how to behave and what to do in certain circumstances.

One such event is called “spin-off”. This article is devoted to it, its influence on the shares of the company and on investors.

What is a spin-off?

Spin-off means that the company splits up, or a branch of its business separates in a separate structure. In other words, the main (parent) company opens a subsidiary and hands over a part of its assets and liabilities, opening a separate legal entity. The parent company, simultaneously, preserves it legal entity.

This event must not be mixed up with opening a new company at the expense of founders and investors.

An example of a spin-off

Let us take an imaginary business as an example.

Company SSS makes construction materials, gradually extending its product line. A bit later the company offers a whole assortment of such products and takes up its niche in the market.

In such circumstances, the management becomes more and more ambitious, craving for development, and decides to carry out a spin-off. Thus the management aims at taking up another niche, namely, construction and installation works.

SSS is a public company with shares in free turnover. At the general meeting of shareholders, they decide to create a subsidiary SSS-1 that will work in the new niche. They also decide upon allocating money for this and all organizational issues. This is quite a lengthy process that can take from six months to a year.

The conditionally new company acquires some assets and liabilities of the company, issues shares, and sets up its primary cost. As a result, all shareholders of the initial company acquire some new share.

This happens at the exchange rate, which is a ratio of the new shares to the share price of the parent company. This will depend on the decision made at the meeting of shareholders.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

MACD + ADX Trading Strategy

Author: Andrey Goilov

Dear Clients and Partners,​

The name of the article clearly indicates that the latter is devoted to a strategy that uses two indicators: ADX and the MACD oscillator. To be short, I will be calling it MACD+ADX. Some say that a trend indicator alongside an oscillator is the most efficient combo.

The strategy is meant for day charts of currency pairs, which means less time spent on graphic analysis than with shorter timeframes. Any of these three pair suits the strategy: EUR/USD, GBP/USD, AUD/USD. Experienced investors stick to these ones because majors have more predictable behavior, and tech analysis works much better on them.

In the article I will show you how to combine signals from the two indicators correctly and will reveal some nuances and rules of work by the strategy..

MACD+ADX description

To open a position, start by analyzing the activity of ADX with period 16. Make sure you choose correct settings when adding the indicator to the trading terminal.

Signals in the strategy do not differ from "classic" ADX signals. As you know, the author claims that a crossing of +Di and -Di as it is already gives a market entry signal. For example, if +Di crosses -Di from below, this is a signal to buy, and if -Di crosses +Di from above, this signals to sell.

+Di and -Di show the difference between today's and yesterday's high and low. So in the first case, when +Di goes up, the trend must be ascending because today's highs are higher than yesterday's. Hence, buying is the best option in such circumstances. Meanwhile, when -Di values go down, we can conclude there is a bearish impulse and get prepared for selling.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the RoboForex company project called ContestFX is waiting for you in the following competitions:

The 128th competition of "Demo Forex" has gained "full speed".
The 336th competition of the "Week with CFD" has just kicked off.
At 12:00, November 17th, 2021, starts the 469th competition of the "Trade Day".
At 20:00, November 18th, 2021, starts the 385th competition of "KingSize MT5".

We remind you that all winners of our demo competitions receive funds to their real trading accounts as a reward, so they can make more money at the Forex market and withdraw the profits without any restrictions.

Take your chance to be one of them!

Sincerely,
RoboForex Contest