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[Vlad RF]

How to Trade Dragon Pattern: Manual

Author: Andrey Goilov

Dear Clients and Partners,​

In technical analysis, there are patterns that can help you catch a market reversal on time. Among strong patterns, people name Double Top and Double Bottom, a.k.a. W-top and M-top.

Fairly enough, the market does not normally reverse by a single strong movement in the opposite direction. Most often, it forms a reversal pattern to get started.

Apart from using classical reversal patterns, some traders modernize identification and trading rules of existing structures. One example is the Dragon pattern.

The Dragon pattern looks very much like a Double Bottom but features some unique rules that identity it as a separate pattern, not a classical price structure. As the author puts it, the Dragon can be traded on various timeframes, while a low risk-to-profit ratio makes it even more attractive for traders.

The article is devoted to distinguishing the Dragon from a classic Double Bottom, the rules of trading, levels of taking the profit and leaving the market if necessary.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project brings the following competitions to your attention:

The 129th competition of "Demo Forex" is gaining speed.
The 340th competition of "Week with CFD" has just started.
473rd competition of "Trade Day" will start on 15.12.2021 at 12:00.
389th competition of "KingSize MT5" will start on 16.12.2021 at 20:00.

We remind you that all winners of our demo competitions receive prize money to their real trading accounts, so they can use them to earn money on the Forex market without investing their own savings required as an initial deposit.

Good luck to all traders!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Use EPS for Evaluating Shares

Author: Victor Gryazin

Dear Clients and Partners,​

To choose interesting stocks for investing, market players evaluate carefully various economic indices and statistics. This overview is devoted to one index called Earning per Share, or EPS.

What is EPS?

This Earning per Share index evaluates how profitable a certain company is in terms of one share. This multiplier shows the relation of net profit over a year’s time and the number of its ordinary shares in turnover, giving an idea of what profit can be brought to the investor by each share they buy.

In essence, each shareholder holds their share of the authorized capital of the company that equals to the number of issued shares. The profit made is given proportionally to each shareholder. So, the EPS multiplier reveals how much money out of the invested sum will return to the investor. The higher the EPS, the more profitable it is to invest in the company.

The profit made by the company can be fully or partially given to the shareholders as dividends. Here, things depend on the decisions of the board of directors. Shareholders via their representatives on the board can influence the issue, altering the share of the profit that will be given out to the shareholders in the form of dividends.

How is EPS calculated?

For calculating EPS, we use the net profit minus dividends on privileged shares. the formula is as follows:

EPS = (P – Div) / N

Where:

• P is the net profit of the company for the reporting period (after taxes)
• Div is the dividends on privileged shares
• N is the number of ordinary shares in turnover in the reporting period

Example of calculation:

As an example, let us use Netflix (NASDAQ: NFLX). Over the last financial year, the company reported 2,761,395,000 USD of net profit, while the total number of ordinary shares in turnover was 440,922,000 shares.

The balance report says that Netflix did not issue privileged shares, so in the calculation formula, we subtract nothing.

Dividing the net profit of 2,761,395,000 USD by 440,922,000 shares, we get EPS of 6.26 USD per share.

You can check EPS in economic reports or on websites. For EPS or American companies, for example, go to Finviz.com:

Closing thoughts

EPS gives a chance to assess the potential profit made on one shares of the company you are planning to invest in. The multiplier has equally advantages and drawbacks, so it is recommended to be used alongside other multipliers, P/E being the most frequently used one.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Choose Shares for Investing in Correcting Market

Author: Eugene Savitsky

Dear Clients and Partners,​

Over the last 10 days, the stock index S&P 500 corrected by 5%. Previous correction was longer but amounted finally to just 6%. Since the beginning of 2021, the index has had five corrections, yet the price has never fallen more than by 6%.

Based on this, we can suppose that the current correction is close to an end, and soon the quotations will start growing again. In this case, the question is: which stocks to buy in such a market?

Today, I will drive your attention to major market players and see which shares they prefer investing in.

At present, the top-3 market participants managing a capital of more than 1 trillion USD includes:

• VANGUARD GROUP INC – 4.2 trillion USD
• BlackRock Inc. – 3.57 trillion USD
• STATE STREET CORP – 1.89 trillion USD

I suggest looking into the portfolios of these funds and check their recent investments. I guess, you will be surprised because you will not see there such well-known companies as Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOG), or Amazon.com, Inc. (NASDAQ: AMZN).

VANGUARD GROUP INC

Let us start with VANGUARD GROUP INC. Note that I range the shares by their “weight” in the portfolio, and these are brand-new purchases, i.e. these shares had not been in the portfolios before.

Number one is Lucid Group, Inc. (NASDAQ: LCID).

Lucid Group, Inc. was founded in 2007. It manufactures cars. This investment is evaluated as 900 million USD. In the last quarter, the average share price of the company was 25.38 USD, while now they are trading for 48 USD.

VANGUARD invested in GXO Logistics about 798 million USD. In the last quarter, the average share price was 78.44 USD and the current market price is 92 USD.

Meanwhile, number three is SoFi Technologies, Inc. (NASDAQ: SOFI).

SoFi Technologies is a financial company founded in 2011. It gives loans for education, refinancing older loans, insurance, mortgage, and provides other financial services.

In SoFi Technologies, VANGUARD invested 751 million USD. In Q3, its average share price was 15.88 USD and the current price is 16.40 USD. Note that with the current price growth, the investments of VANGUARD GROUP already demonstrate profitability.

Tech analysis of GXO Logistics shares

Now to the charts of the companies. The shares were bought in Q3, so now we can check how this process affected the share prices of the issuers.

The leader in terms of the sum of investment is GXO Logistics. Since the IPO, the shares of the company have been growing, which is no surprise. Average daily trade volume amounts to 55 million USD. Hedge funds created demand for the shares with their 1.6 billion USD of investments, making the share price grow.

Today, there is an uptrend on the chart, and the quotations have declined to the lower trendline, which means the correction will soon be over, and growth will start again. Another signal to buy the shares will be a bounce off 90 USD.

Bottom line

Corrections give investors a great chance to buy some shares at lower prices. However, there is always a question, which shares to buy. I suggest that we look for possible investments in the reports of major market players that employ dozens or perhaps hundreds of analysts all over the globe.

All the three funds spent on the shares of the named companies no more than 0.02% of their portfolios, which means in the future they will be investing more, making the shares grow.

Currently, keep a close eye on the charts of the shares, checking for support levels, as with Victoria's Secret & Co quotations. This will be a hint on the price, at which it is better to buy the shares.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

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

The 129th competition of "Demo Forex" has entered the third week.
The 341st competition of "Week with CFD" has kicked off today.
474th competition of "Trade Day" will start on 22.12.2021 at 12:00.

This week, the competition of "KingSize MT5" will not be held on 23.12.2021. The 390th competition will take place on 06.01.2022 at 20:00.

If you haven't participated in our competitions yet, you need to register on our website and get access to any of the chosen competitions with just a couple of mouse clicks.

Good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex: changes to the trading schedule (in view of the Christmas and New Year holidays)

Dear Clients and Partners,​

We are informing you that there will be some changes to the trading schedule* during the Christmas and New Year holidays.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on DE30Cash and DE40Cash

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – no trading.
• 3 January 2022 – trading as usual.

Schedule for trading on CFDs on GDRs

• 24 December 2021 – no trading.
• 27 December 2021 – no trading.
• 28 December 2021 – no trading.

Schedule for trading on other instruments

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – trading stops at 8:00 PM, server time.
• 1 January 2022 – no trading.
• 2 January 2022 – trading as usual.

R StocksTrader platform

Schedule for trading on GER40

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – no trading.
• 3 January 2022 – trading as usual.

Schedule for trading on UK100, SPA35, FRA40

• 24 December 2021 – no trading.
• 27 December 2021 – no trading.
• 28 December 2021 – no trading.
• 29 December 2021 – trading as usual.
• 31 December 2021 – no trading.
• 3 January 2022 – no trading.
• 4 January 2022 – trading as usual.

Schedule for trading on UK stocks

• 24 December 2021 – no trading.
• 27 December 2021 – no trading.
• 28 December 2021 – no trading.
• 29 December 2021 – trading as usual.
• 31 December 2021 – no trading.
• 3 January 2022 – no trading.
• 4 January 2022 – trading as usual.

Schedule for trading on CFDs on EU stocks

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 30 December 2021 – no trading.
• 31 December 2021 – no trading.
• 3 January 2022 – trading as usual.

Schedule for trading on other instruments

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – trading stops at 8:00 PM, server time.
• 1 January 2022 – no trading.
• 2 January 2022 – trading as usual.

cTrader platform

Schedule for trading on all instruments

• 24 December 2021 – no trading.
• 27 December 2021 – trading as usual.
• 31 December 2021 – trading stops at 8:00 PM, server time.
• 1 January 2022 – no trading.
• 3 January 2022 – trading as usual.

Please take note of the above trading schedule changes when planning your trading activity.

* – This schedule is for informational purposes only and may be subject to further change.

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex receives the "Best Stocks Broker (Global)" Award

Dear Clients and Partners,​

In late 2021, RoboForex became the recipient of the “Best Stocks Broker (Global)” award from the prestigious media Global Business Review.

For much of 2021, we were paying extra attention to the improvement of our multi-asset platform R StocksTrader, which allows to invest in a lot of different instruments, including over 3,000 stocks and more than 8,000 CFDs American and European stocks.

• We extended the list of assets by adding over 700 new instruments.
• We added the opportunity to invest in SPAC.
• We enabled access to trading fractional shares.
• We expanded the platform functionality.
• We improved the mobile application.

Another award in the "Best Stocks Broker (Global)" nomination is proof that the company is moving in the right direction. It motivates us to consistently improve our products and services for our clients.

Are you ready to try stock trading?

See the quality of our provided services for yourself!

​

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project invites everyone to take part in the following competitions:

The 129th competition of "Demo Forex" is approaching its end.
The 475th competition of "Trade Day" will start on 29.12.2021 at 12:00.

"Week with CFD and" KingSize MT5 " contests will not be held - their next competitions will take place in the new year of 2022.

Congratulations to all of you on the upcoming Christmas and New Year! We wish everyone health, prosperity, and good luck in all your endeavours!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Trade Marubozu Candlestick Pattern?

Author: Victor Gryazin

Dear Clients and Partners,​

This article is devoted to a universal candlestick pattern Marubozu: what it looks like on the chart and in which cases it can be used for trading.

What Marubozu candlestick is

The pattern is named after the only candlestick that it includes – Marubozu. From Japanese, the name is translated as “bald”, “with shaved head”. The candlestick has a large body and almost no shadows, so it looks as if its shadows have been “cut off”, leaving the candlestick with just a “bald” body.

There are three Marubozu types:

• Marubozu Full almost lacks both shadows;
• Marubozu Open lacks the shadow at the side of the opening price and has a small shadow at the side of the closing price.
• Marubozu Close, on the contrary, lacks the shadow at the closing side and a small one at the opening sid

The pattern can consist of any Marubozu, the type does not matter. As for the strength of the candlestick, it is considered quite strong and does not appear too often. When it does appear, however, this means bulla or bears are going to take action.

Types of Marubozu pattern

Depending on the color of Marubozu body, traders single out two types of the pattern: Bearish Marubozu and Bullish Marubozu. Sometimes you can hear about Marubozu Brothers, which means there are both types of the candlestick: a white bullish and a black bearish candlestick. I would say, one brother tries to push the market upwards (the Bullish Marubozu), while the second brother, on the contrary, plans to send the market down (the Bearish Marubozu).

Bullish Marubozu

The pattern consists of a large white candlestick and demonstrates that bulls are ready to attack. The place on the chart where the pattern forms, indeed, matters. There are two main trading scenarios.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

The RoboForex company's project called ContestFX invites everyone to join our exciting competitions in the new year of 2022:

The 130th competition of "Demo Forex" and 342nd competition of "Week with CFD" have just started.
476th competition of "Trade Day" will start on 05.01.2022 at 12:00.
390th competition of "KingSize MT5" will start on 06.01.2022 at 20:00.

We remind you that all winners of our demo competitions receive funds to their real trading accounts and can use them to make deals in the Forex market without investing their own money required as an initial deposit.

We wish you all successful trading for the whole year of 2022!

Sincerely,
RoboForex Contest