Discuss SolidECN.com

[SOLID ECN LLC]

For forex products, ECN with LPs would protect a broker from a black swan price movement. Some of the other products offered by Solid ECN appear to be CFDs. Is there a counterparty serving as LP for all trading products?

Sometimes brokers go bankrupt when there have been no major market events or wild price swings. How are client funds protected in the event of a possible bankruptcy that's unrelated to market movements?

Hi,

Thank you for sharing your question with the community.

Solid ECN is covered by two insurances in order to safe guard the company.

• Credit/Debit insurance
• Indemnity insurance

Should you have any questions, please do not hesitate to contact us.

 

[SOLID ECN LLC]

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Trading with Elliott Wave (Part 2/2)​

Decoding Elliott Wave Corrective Pattern
Corrective waves, also known as diagonal waves, are composed of three sub-waves or a combination of three sub-waves that result in a net movement that is perpendicular to the trend of the next-largest degree.

Its objective, like with all motive waves, is to move the market in the trend’s direction.

There are five sub-waves in the corrective wave. The diagonal is different because it might seem like a wedge that is either extending or contracting.

Depending on the sort of diagonal being observed, the sub-waves of the diagonal may not have a count of five. Every sub-wave of the diagonal, like the motive wave, never exactly repeats the previous sub-wave, and wave number three of the diagonal may not be the shortest wave.

Elliott Wave with Fibonacci
Corrective wave application emphasizes the potential for cross-studying Fibonacci retracements. Fibonacci levels were not directly used by Elliott, although traders have done so to make the conventional theory more complex.

Which Fibonacci retracement levels might be applied at different stages in the trend are highlighted by the previously stated principles. The 23.6 percent -50 percent levels would be of special interest to a trader searching for a fourth wave given rule three, who would also be looking for it to be reasonably shallow.

Additionally, we can look for the correct A, B, and C move to represent a retracement of 50% to 61.8% of the overall 1-5 impulse move.

Bottom-line
For many people all across the world, Elliott Wave theory continues to provide markets a sense of structure. The capacity to constantly adjust the theory whenever a rule is breached can make it difficult to employ the theory as a trading tool.

But it also significantly improves trend recognition’s level of clarity. Elliott’s original principles can be made as complex as a trader wants, but it is unquestionably an approach that many traders choose to priorities in their market tactics.

We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.​

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[Pharaoh]

Hi,

Thank you for sharing your question with the community.

Solid ECN is covered by two insurances in order to safe guard the company.

• Credit/Debit insurance
• Indemnity insurance

Should you have any questions, please do not hesitate to contact us.

Most companies have some form of insurance, but I haven't seen an anti-insolvency policy. Exactly what does the insurance cover?

So far, you haven't actually fully answered the original question:

Is there any provision for traders in the case of bankruptcy? What will happen if solid ecn gose bankrupt?

Nor have you explained whether your CFD products are all somehow directly connected to LPs in an STP fashion. If they aren't, even your claim that the company won't be effected by the market crisis doesn't really hold up well. You could be in serious financial difficulty caused by a sudden large move of cryptos, commodities, or other CFD products.

Plus, there's always simple insolvency unrelated to the markets. As mentioned, I doubt your insurance would cover such a situation. No matter what the cause of a hypothetical bankruptcy, it sounds like your current arrangements would leave account holders standing in line behind others owed debts by the company.

 

[SOLID ECN LLC]

Most companies have some form of insurance, but I haven't seen an anti-insolvency policy. Exactly what does the insurance cover?

So far, you haven't actually fully answered the original question:



Nor have you explained whether your CFD products are all somehow directly connected to LPs in an STP fashion. If they aren't, even your claim that the company won't be effected by the market crisis doesn't really hold up well. You could be in serious financial difficulty caused by a sudden large move of cryptos, commodities, or other CFD products.

Plus, there's always simple insolvency unrelated to the markets. As mentioned, I doubt your insurance would cover such a situation. No matter what the cause of a hypothetical bankruptcy, it sounds like your current arrangements would leave account holders standing in line behind others owed debts by the company.​

Hi,

Solid ECN is an STP ECN broker. All trades from the retail section are executed in the market (A Book) model. The indemnity insurance covers any neglect in the operation caused by the company up to 500,000 USD. Bankruptcy may cancel some insurance policies, but debit insurance is a common insurance policy condition that prevents an insurer from being relieved of its obligations in the event of bankruptcy or insolvency of the insured or the insured's estate.

Both policies require serious account keeping and booking. Unfortunately, I can't share more information about this case in public since this is a competitive market.

Regarding your concern about the market risk and the chances of insolvency.

Traders are categorized based on their trading strategies, trade volume, and money management.​

• Fundamental traders​
• Swing traders​
• Long-term traders​
• Short-term traders​
• Merchants​
• Scalpers​

Any individual or a corporate with less than a trading volume of 300 standard lots per month is considered a retail trader. Scalpers, short-term traders, and news traders are also in this category.

Retail traders are with our A Book and the tier-1 LP. But if I want to keep my firm running for a long time I should not trust any liquidity provider or insurer which constantly seek a reason to confiscate or froze their client assets. Allegations such a new sanction, a possible military conflict, war, conflict in policies, etc.

I can pay the our major clients' money with no concern only if I don't rely on any second party. So we buy/sell a high-volume traded asset on spot in the bazaar, not with a CFD broker. We call it the hedge fund.

I am not comfortable with sharing this information because %90 of the brokers either refuse to go for it or they don't have enough resources. I just revealed our policy on managing the risk of thousands of lots per day. But, I do not wish our readers to be under the impression of we hiding something.​

 

[SOLID ECN LLC]

How to trade with High-Wave Candlestick Pattern?
Indecision candlesticks that resemble long-legged Dojis are known as High-wave candlestick patterns. Their lower shadows are lengthy, and their top wicks are long. They also have a larger physical body. They’re common near support and resistance levels, as well as during periods of consolidation. Bullish or bearish high wave candles are possible.

What is High-Wave Candlestick Pattern?
A high wave candlestick pattern is an indecisive pattern that indicates neither bullish nor bearish market conditions. It generally happens at the levels of support and resistance. This is where bears and bulls compete to drive the price in a specific direction. Long lower shadows and long higher wicks are used to show the design of candlesticks. They, too, have little bodies. Long wicks indicate a lot of price movement throughout the period. However, the price eventually settled near the opening level.

In most situations, buyers attempt to raise prices but are met with fierce opposition. Similarly, sellers attempt to cut prices but find fierce opposition. Both fail to drive price in a specific direction, resulting in the candlestick closing near to where it began.

Formation
The high wave candlestick is a unique type of spinning top basic candlestick with one or two lengthy shadows. The prices at the open and closing are not the same. They differ slightly from one another. The color of the body has no bearing here. The pattern looks like a long-legged Doji.

The High wave pattern indicates that market changes are rapid, just as most candles have long shadows. This could put the current trend in jeopardy. The significance of the candle, like in so many other examples, is highly dependent on the market setting.

How to interpret this pattern?
A high wave candlestick pattern can appear anywhere on the price chart of a stock or currency pair. This High-wave candlestick pattern could be regarded as part of a continuation pattern if it appeared in the middle of a move, either an upward trend or downwards trend. For example, if a stock is heading up and the high wave candlestick pattern appears, a consolidation could occur. After a few swings, the price of a range’s highs and lows may break out of the range and continue to rise.

If the high wave candlesticks appear in a stock that is going lower, a range may emerge, resulting in a sideways activity. When the consolidation period ends, the price may break out and continue to fall in line with the long-term decline.​

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[SOLID ECN LLC]

Understanding Mat-Hold Candlestick Pattern
The Mat-Hold candlestick pattern is a five-candlestick pattern that appears during a trend and indicates that the market is likely to continue moving in the same direction. The pattern can be bullish or bearish, and it can be found in all assets and time frames. When applied appropriately, it has a high success rate.

What is Mat-Hold Candlestick Pattern?
A candlestick formation known as a mat hold pattern shows the continuation of a previous move. Mat hold patterns can be bullish or bearish. A bullish pattern consists of a large upward candle, a gap higher, and three smaller candles that move downward. These candles must stay above the first candle’s low point. The fifth candle is a huge candle that is moving upwards once more. The pattern appears as part of a larger upward trend.

Candles one and five are large down candles in the bearish version, while candles two through four are smaller and travel to the upside. These candles must stay below the first candle’s peak point. A long candle to the downside, candle five, completes the pattern. It has to happen during a decline.

Formation
You must be aware of three key aspects to recognize the Mat Hold candlestick pattern:

Bullish Mat Hold

> During a bullish or bearish trend, the Mat Hold pattern appears.
> Five candlesticks make up the pattern: a bullish or bearish candle, three opposite candles, and another candle in the same direction as the first.
> In either the bullish or bearish variation, the last candle must close above (or below) the previous fourth candle.

Bearish Mat Hold

What do traders interpret?
When a bullish mat hold pattern appears in an uptrend, it indicates that the trend is likely to resume to the upside. Traders can buy near the fifth candle’s closure (big up candle) or begin a long trade on the next candle. A stop loss is usually placed below the fifth candle’s low.

When a bearish mat hold pattern appears within a downtrend, the downtrend is likely to resume and prices will fall further. Traders may sell or short near the fifth candle’s close or on the next candle. Short positions have a stop loss above the fifth candle’s high.

Both variations of the pattern are quite uncommon. They illustrate that the price is firmly moving in the trending direction (candle one), with only slight pressure in the opposite direction (candles two through four) before it resumes its trending movement (candle five).​

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[SOLID ECN LLC]

Understanding On-Neck Candlestick Pattern
The On-Neck Candlestick Pattern is made up of two candlesticks: a tall down candle and a much shorter up candle that gaps down on the open but closes at or near the previous candle’s close. The pattern is called “On Neck” because it produces a horizontal line that can be interpreted as a “neckline” or “neck” when the two closing prices are the same (or nearly the same) throughout the two candles.

What is On-Neck Candlestick Pattern?
When a long real body down candle is followed by a smaller real bodied up candle that gaps down on the open but closes near the prior candle’s close, the on neck pattern occurs. The pattern is known as a neckline because the closing prices of the two candles are the same (or nearly the same), forming a horizontal neckline. In theory, the pattern is considered a continuation pattern, implying that the price will continue to fall as a result of the pattern. In actuality, this happens just about half of the time. As a result, the pattern frequently implies at least a short-term upward reversal.

Formation
Look for the following characteristics to identify the On Neck pattern:

• First, there must be a downward trend going on.​
• There must appear a towering black (bearish) candle.​
• Finally, the black candle must be followed by a smaller white (bullish) candle.​
• The white candle’s close should be virtually identical to the previous candle’s low. Therefore, it should not climb above the low price of the black candle.​
• Look for a black candle on the third day to confirm the On Neck pattern and continue the downward trend. A long body, as well as a gap between the second and third days, demonstrate strength.​

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[SOLID ECN LLC]

Trading with On-Neck Candlestick Pattern
The security is in a primary downtrend or a significant correction inside a primary uptrend. A long black genuine body is displayed by the first candle. Bearish complacency grows due to the weak market action, while weakening bulls retreat completely. On the second candle, the security gaps down and sells off to a new low, but buyers seize control and boost the price back to the preceding close, but not above it. According to the bears, the bulls were unable to drive the price above the previous close. The bears will seize control of the next few candles, sending the price lower according to the idea. But, as previously stated, this only happens roughly half of the time in actuality.

Difference between On-Neck and In-Neck Candlestick Pattern
The in-neck pattern, which is also a two-line continuation candlestick pattern, is another option. This is also a bearish pattern in a downtrend with the first candle being bearish. The second candle is a bullish one, with a slightly higher closing price than the prior candle’s closing price. The closing price level shows the distinction between an in-neck and an on-neck candlestick pattern.​

• The in-neck pattern indicates that the trend is still bearish and will continue, but it is not as intense or severe as the on-neck candlestick.​
• Because the two patterns are so similar, you’ll have to scrutinize them closely to figure out which is which.​

Limitations
The price could move higher or lower with about equal probabilities if the pattern is followed. The pattern’s moves to the upside tend to be larger than the pattern’s moves to the downside. Trading based on the pattern could lead to a variety of outcomes. While a lower breakout is as simple as a dip below the low (or close) of the second candle, the trader must decide whether they consider a move over the high (or close) of the second or first candle to be a higher breakout point. Because the candlestick pattern lacks an intrinsic profit goal, a mechanism of profit-taking must be established. The pattern works best when combined with additional technical indicators and procedures for confirmation.

Bottom-line
We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.​

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[SOLID ECN LLC]

How to use Rising and Falling Window Candlestick Pattern
Rising and Falling Window Candlestick Pattern- The support and resistance zones of window candlestick patterns are highly rigid. Therefore, a stiff resistance region is generated in the case of a Falling Window candlestick pattern, which gives a better probability of trade chances on consecutive re-tests of the resistance area. Similarly, a stiff support region is generated in the case of a Rising Window candlestick pattern, which also gives a better probability of trade chances on consecutive re-tests of the support area.

What is Rising Window Candlestick Pattern?
There must be space between the real bodies of two candles to form a Window (whether rising or falling); in fact, even their shadows should not overlap. During an uptrend, a Rising Window is a price gap that forms. The space between the candles represents the distance between the high of the previous candle and the low of the current candle. This trend indicates that the bulls are in control, and we can expect them to keep pushing the price higher. Examine the size of the gap to acquire a better understanding of the pattern’s message. For example, a high gap denotes a significant price increase, whereas a small gap denotes a modest (and unimportant) price change.

Formation
The Rising Window, also known as a “gap up,” appears when the price continually rises, and it is always regarded as a bullish signal. So don’t be startled if you see the Rising Window; it’s a common occurrence (though not as often on charts with longer time scales).

Because this continuation pattern is so simple and common, make sure you look at it carefully to understand what it’s trying to tell you. Small details can have a significant impact.​

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[SOLID ECN LLC]

Trading with Rising Window Candlestick Pattern
The chart starts with an upward trend. At the commencement of the movement, the bulls construct a gap up (i.e., a Rising Window) to show their might. The uptrend continues for approximately half of the chart, with predominantly white candles increasing steeply.

What is Falling Window Candlestick Pattern?
A price gap in a downward trend is referred to as a Falling Window candlestick pattern. It must happen while the price trend is down, and it is always a bearish signal. This continuation pattern is highly common on charts with shorter time scales, but it isn’t as common on longer time scales. Because it is so common, it is critical that you pay attention to the peculiarities of each Falling Window. These details can help you figure out how important the signal is and whether you should pay attention to it.

Formation
When the two candles appear after the Falling Window, examine them. A Downside Tasuki Gap pattern, may have arisen if they do not close the window or fill the gap (this includes their shadows). The first and second candles must be bearish, but the third must be bullish in order to qualify.

After a significant downturn (as evidenced by the gap down), the bulls attempted to force the price back up. However, they were unsuccessful, and the decline is projected to continue. The bears can produce a Falling Window candlestick pattern if they gain control. However, the bears, as expected given the indication, fight on and maintain the downturn.

Bottom-line
We hope you found this blog informative and use it to its maximum potential in the practical world. Also, show some love by sharing this blog with your family and friends and helping us in our mission of spreading financial literacy.
​

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Trust Score 4.9​