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  • RF roboforex
    replied
    Dear traders!

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

    The 141st competition of "Demo Forex" has crossed its "Equator".
    The 392nd competition of "Week with CFD" has just started.
    The 526th competition of "Trade Day" will start on 21.12.2022 at 12:00.
    The 440th competition of "KingSize MT5" will start on 22.12.2022 at 20:00.

    It is very easy to take part in our demo competitions and receive prize money if fortune smiles upon you - for this all you need is to go through a simple registration procedure, and then all the contests will become available to you in just a couple of mouse clicks.

    Join us!

    Sincerely,
    RoboForex Contest

    Leave a comment:


  • Vlad RF
    replied
    Trading on Forex – A Primary Source of Income

    Author: Dmitriy Gurkovskiy


    There are a lot of discussions about trading within the boundlessness of the Internet, both in conventional businesses and state-financed organizations. People say and write a lot of different things. More often than not, they are sure that trading can’t be regarded as a primary source of income. Arguments in these judgment call are as follows: “No matter how professional, cold-blooded, or wise you are, all these personal qualities won’t help you if markets don’t give you a chance to earn money, because markets offer such chances only at some particular periods of time. And if you trade every day, you are doomed to failure.”

    Forex stereotypes

    Many people have similar views on the matter and say that trading may be considered only as some kind of a part-time activity in addition to one’s main day job, occupation or business, because like we’ve said before, markets offer chances to earn money only at some particular short periods of time, while the rest of the time is simply wasted. According to these discussions, to avoid wasting time one should think of trading as a secondary activity (income, earnings) or get a job at brokers, investments/asset management, etc. Independent, so called home-made, traders and investors are foretold only falling into a decline or losing all their money and going broke.

    Of course, you can agree or disagree with this opinion, it’s your private stance. However, no one prohibits you to think of about a possibility of turning your personal trading activities on global financial market into something more than just a leisure, an opportunity to earn 100 extra bucks into a real business or a job that earns you considerable money. That’s why, I suggest you to decide on your approach to trading, its daily schedule, and the level of income you want to get from it to cover all your subsistence needs, because these are the criteria that you usually follow when starting your own business or applying for a job.

    And of course, you have to make up your mind about an average weekly/monthly income. Probably, the income level issue may be the most essential for many of people, but it shouldn’t become a “stumbling block”, because trading is a complex matter, not a complexing one. Also, this issue may bring down to earth some beginners, who want to start trading with 100 USD and expecting to see 1,000 USD on their account balance at the end of the month. Yes, the reality is that stability and longevity on the market are controlled by modesty and common sense.

    Trading system

    Well, first things come first. If you plan a steady monthly income of 1,000-2,000 USD, you must have 10,000-20,000 USD on your account balance on the first day of trading. Of course, this level of income is possible if you trade very carefully and in a risk averse way. If you’re more advanced in risk management, you can start trading with 5,000 USD and hope for 1,000-1,500 USD a month. In other words, this is a basis for “home/couch” trading. Still, you must always remember that your entire work should be based directly on your trading system! It means that your trading system should adapt to all periods of market activity and earn 40-50 pips every day. Given this, we can assume that a daytrader’s standard trading volume is 0.2-0.4 lots.

    Yes, it can! Your task reduces to find and track a trading instrument that can match this speed and distance and then just copy successful trades/deals. At the same time, you should realize that not all deals will be profitable, that’s why think of increasing profitable periods to cover losses suffered during drawdowns. If you survive this rhythm/schedule for at least 6 months, you can count on a glittering future and start your career as an asset management company in CopyFX and RAMM. You can create trader communities to attract investors and manage big money. This scaling, if not to say socializing, method, will help you to avoid risks of asocial burnout due to lack of social communication, which is a very common thing for retail traders and investors.

    Conclusion

    To put it shortly, one can draw the following conclusion: it is possible to turn trading into a primary source of income if you create your own strategy and abide by its rules. However, if you don’t have what it takes yet, I mean strategy, knowledge, skills, money, don’t rush to quit your job. Just continue practicing, accumulate experience and money.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to Trade the Crab Pattern

    Author : Victor Gryazin

    In this review we will get acquainted with the harmonic Crab pattern. We will consider the stages of its formation on the price chart, and the strategy for its use in trading. We will compare it with the Deep Sea Crab pattern.

    What is the Crab pattern?

    This harmonic pattern was introduced to the trading community by Scott Carney in 2000. Its structure is very similar to many popular harmonic patterns, including the famous "Gartley’s Butterfly". The difference is in the different Fibonacci ratios: in the hero of our material, the final segment has a longer extension.

    The harmonic Crab pattern consists of five points (X, A, B, C and D) and four price swings (XA, AB, BC and CD). The last one is formed by the point D, which is a potential reversal area. Its appearance is considered as a signal to open the positions for buying or selling. The appearance of the pattern on the chart signals the end of the current price impulse and the forthcoming reversal.

    Stages of formation
    • XA is the first impulse of the price movement on the chart.
    • AB is the correction from the first XA movement, ranging from 38.2% to 61.8%.
    • BC - can range from 38.2% to 88.6% of the length of AB.
    • CD, the longest wave, ends around the 161.8% retracement level of XA and is an extension of 224-361.8% of VS.
    • Point D is the final stage of formation.
    A pattern can form on different timeframes. It can often represent a correction area, after the end of which the preceding trend is likely to continue. Relevant for trading in forex, stock, commodities and other financial markets.

    https://blog.roboforex.com/wp-content/uploads/2022/12/Crab-1.png

    How a bullish Crab pattern is formed
    • The first impulse of the XA price movement is upward.
    • On the AB section, the price reverses and declines by 38.2-61.8% from XA.
    • On the BC section, the price reverses again and rises to 38.2-88.6% of AB.
    • On the CD, the price is actively declining and reaches about 161.8% of the XA. This is the longest wave.
    • After the formation of the D-point, an upwards reversal and a further rise is expected.
    How to trade the bullish Crab pattern
    • A buy position can be opened once the D-point has been formed and quotes have shown an upward reversal.
    • The Stop Loss is placed just below the pattern low at point D.
    • The points X, B, C and the maximum of the model at point A can be used for Take Profit.
    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • RF roboforex
    replied
    Dear traders!

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

    The 141st competition of "Demo Forex" is gaining momentum.
    The 391st competition of "Week with CFD" has just kicked off.
    The 525th competition of "Trade Day" will start on 14.12.2022 at 12:00.
    The 439th competition of "KingSize MT5" will start on 15.12.2022 at 20:00.

    We remind you that upon winning any of our competitions, all winners receive prize funds on their real accounts that can be used for trading in the Forex market instead of the winners' own money.

    We wish you all successful trading!

    Sincerely,
    RoboForex Contest

    Leave a comment:


  • Vlad RF
    replied
    How to Create an Investment Portfolio on Forex?

    Author : Anna Rostova

    How to become an investor? Where to start and what is an investment portfolio? Let’s try to see into the matter and find out what exactly a person, who decided to start investing, should do.

    An investment portfolio is a set of financial instruments. The purpose of acquiring such instruments is of course making profit in the future. Options, stocks, futures, metals, real estate, currencies, and many other assets – all of them can be considered as financial instruments.

    The purpose of any investor is getting maximum profit while incurring minimum risks. Unfortunately, it doesn’t always happen this way. In order to balance possible profit and losses, investors diversify their assets, which means that they don’t invest all their money in one particular instrument, and allocate their funds into several different items.

    Investment portfolio on Forex

    For example, we’ve decided to create an investment portfolio using the instruments traded on the forex market (it’s possible and happens quite often). What we do in this case is the following: decide on the invested sum and the profit we’d like to receive, and then explore, explore, and once again explore all available options.

    Let’s get into more details. First of all, we must decide on the amount of funds we’d like to invest in this project and the amount of profit we’d like to receive. It makes sense to set minimum thresholds and not try to get all at once. There are several types of investment portfolios, with the most popular being conservative and aggressive. The first one implies getting a small positive result with minimum (if possible) risks. One shouldn’t expect this investment portfolio type to yield extra high profit – your profit will increase slowly. The second type is an aggressive investing, which may earn you a lot of money, but risks and possible losses in this case are much higher as well.

    When investing in instruments of the currency market, investors supposedly create an aggressive type of portfolio. It happens because most of currencies and metals are highly volatile, in other words, their prices are very mobile and this fact can be successfully used to get investment revenue.

    Creating a portfolio

    Now let’s try to figuratively group several instruments for our portfolio. Of course, it will be approximate, because all investors have their own preferences. First off, we should start with those currency pairs, which are trading at lows: they are more likely to grow than those trading close to highs. When it comes to investments, it might be better to buy than sell.

    After that, one should take the correlation into account, which is the way how currency pair movements depend on each other. From this point of view, it might be dangerous and unwise to buy two instruments that are trading in almost the same direction, because if they start falling, your losses may be doubled. On the other hand, buying two instruments that are moving in different directions might be rather dangerous and risky as well. For instance, in most cases EUR/USD and GBP/USD are moving in the same direction, so if we buy them in the same volume, both pairs will simultaneously be either profitable or loss-making. In this light, opening positions in these instruments in different directions is not a good idea, as the profit received from one of the pairs will only compensate losses incurred from the other one.

    Long-term investments

    So, what should we do then? The most viable option will be creating a long-term investment portfolio with currency pairs or metals, which are not correlated to each other. For this purpose, one may use cross rates as well, despite their spreads being quite wide. However, it won’t matter much for long-term or mid-term investments.

    After your investment portfolio is created, it’s necessary to decide how to allocate your invested money, in percentage terms. For instance, you may equally divide your money into all instruments or invest more funds in some particular ones. In each case, investors make their own decisions, because there is no any universal schemes for this.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to trade the Right Moment strategy

    Author : Victor Gryazin

    In this review we will look at the "Right Moment" indicator strategy. It is based on identifying and using overbought and oversold zones in trading. How to set up the indicators, and buy and sell using the strategy – find the answers to these questions and examples in our article.

    Description of the “Right Moment” strategy

    The "Right Moment" strategy is mainly designed to be used in a flat, sideways market movement. It requires the price to be in a limited sideways range for at least a week.

    The strategy is based on signals from the Bollinger Bands trend indicator and two oscillators - Williams' Percent Range and Relative Strength Index (RSI). It can be used for trading different financial instruments. The recommended time frames are M15 and H1.

    The "Right Moment" uses overbought and oversold zones to search for trading signals. They describe short-term extreme deviations of market instrument prices from average values: overbought - too high, oversold - too low. These zones are identified by the Williams' Percent Range and RSI oscillators.

    Complementing the strategy is the use of the rebound of quotations from the outer limits of the Bollinger Bands indicator channel, which act as dynamic support or resistance levels. These boundaries serve as a reference point for opening and closing positions according to the strategy. The combined use of the signals of the three indicators is designed to help find promising trades in the market.

    https://blog.roboforex.com/wp-content/uploads/2022/12/RightMoment-1-1319x828.png

    How to set up indicators for trading the “Right Moment” strategy

    To search for trading signals using the "Right Moment" strategy, you need to install three indicators - Williams' Percent Range, Relative Strength Index and Bollinger Bands - on the chart of a financial instrument. In popular MT4 and MT5 trading platforms, you can install indicators on the chart through the main menu: Insert / Indicators.

    In their settings window, select the following options
    • Bollinger Bands: period 20, deviation 2.
    • Williams' Percent Range: period 25. The overbought and oversold zones are set at -20 and -80, respectively.
    • Relative Strength Index (RSI): period 5. The overbought and oversold zones are set at 70 and 30, respectively.

    https://blog.roboforex.com/wp-content/uploads/2022/12/RightMoment-2-1455x828.png

    How to buy with the “Right Moment” strategy

    The conditions for opening a buy position:
    1. The Williams' Percent Range and RSI indicators should fall into oversold territory, below -80 and 30 levels respectively.
    2. When the RSI crosses the 30 line upwards, there should be a confirmation from Williams: the indicator line crosses the -80 line upwards. At this point the price should be near the bottom of the Bollinger Bands channel.
    3. A buy position is opened and the Stop Loss is set at the local low on the price chart. Loss is somewhat disappointing, as it turns out to be larger than Take Profit, which is not always right from the risk management point of view.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • RF roboforex
    replied
    Dear traders!

    This week, the ContestFX project offers you the following competitions:
    The 141st competition of "Demo Forex" and 390th competition of "Week with CFD" have just started.
    The 524th competition of "Trade Day" begins on 07.12.2022 at 12:00.
    The 438th competition of "KingSize MT5" will start on 08.12.2022 at 20:00.

    Participation in our contests does not ask for much effort: all you need is to go through a simple procedure for registering an account on our website, and then you can join any of the contests outright, with just a couple of mouse clicks.

    Good luck!

    Sincerely,
    RoboForex Contest

    Leave a comment:


  • Vlad RF
    replied
    Main Order Types on MetaTrader

    Author : Victor Gryazin

    This overview is devoted to the main types of orders used on MetaTrader platforms. Orders serve to open and close positions, limit losses and take the profit.

    Main order types in trading

    For trading in financial markets, there are two main types of orders used:

    Market order is the simplest and most understandable of all. This is an order to sell or buy the asset at the current market price immediately. The priority of the order is obligatory execution, if only there is enough liquidity in the market. Positions open (or close) at once. When volatility is high, so-called "slips" occur, which means the actual execution price differs from the Bid or Ask price at the ordering moment.

    Limit order is an order to sell or buy the asset at the specified price. Limit orders will not allow making trades at a worse price than said in the order, yet it is not guaranteed that the order will be executed. In other words, the order will be executed only if there is the limit (or best) price in the market. If otherwise, the order will not be executed.

    Based on these two orders, there have been creates several order types on MetaTrader platforms. On other platforms, things might work differently.

    Opening orders

    Buy Limit

    This is a limit order to buy the asset at a price no worse than the specified one. Also, this order can be used when you need to limit the price of a not most liquid asset you are buying.

    For example, when Brent oil price is $80, while the trader wants it cheaper — at $70 — they can place a pending Buy Limit order at the desirable price level. The position will open as soon as the Ask price reaches the specified level.

    Sell Limit

    This is a limit order to sell the asset at a price no lower than the one set in the order. This type can be used when you need to limit the selling price of a non-liquid asset.

    For example, if gold now costs $1,800, and the trader wants to sell it when the price reaches $2,000, they can place a Sell Limit order at this level. As soon as the Bid price reaches the desired level, a selling position will open.

    Closing orders

    After a position is open, the trader needs to specify its closing conditions. As a rule, there are two options: Take Profit for a price going as forecast and Stop Loss for a price going against the trader.

    Take Profit

    Take Profit is a pending order that closes the position without trader's participation. A placed order automatically closes a gaining position as soon as the price reaches the specified level.

    For example, the trader buys Brent oil at $70 and expects it to grow to $100 in the nearest future, where they will close the position with a profit. Hence, they can place a Take Profit at $100, and the position will close automatically, as soon as the quotations reach the level.

    Margin Call and Stop Out

    There are also such important phenomena as Margin Call and Stop Out.

    Margin Call

    This is a notification by which the broker informs the trader that due to the current losses in all open positions the money on the account is not enough to sustain those positions. The trader then needs either to deposit their account or close some of the positions, otherwise a Stop Out might follow.

    Stop Out

    Stop Out means forced closing of losing positions by the broker at the current market price when the ratio of the trader's capital to margin reaches a critical level (set by the broker). After the positions close, the trader's deposit will get corrected according to the losses they suffered. Losing positions will keep closing until the said ratio exceeds the Stop Out level.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    How to Trade With the ABCD Pattern

    Author: Victor Gryazin

    In this review, we will get acquainted with the ABCD harmonic pattern. We will take a look at how it is formed, and how it can be used in trading. We will tell you what tools you will need to find it on the chart.

    What is the ABCD pattern in trading?

    ABCD is one of the simplest harmonic patterns. It has only four points (A, B, C, and D) and three price swings (AB, BC, and CD). It looks like a diagonal lightning bolt on the price chart. The last point, D, is formed in the model, which is a potential reversal zone. Its appearance is considered a signal to open buy or sell positions.

    The ABCD trading pattern in trading is a three-wave correction, after which the price movement towards the main trend can continue.
    Stages of pattern formation

    AB is the first movement impulse in the pattern
    • BC is a 61.8-78.6% Fibonacci retracement of AB
    • CD is the final wave. It is an expansion of 127.2-161.8% Fibonacci from the BC segment and should be roughly equal to the AB impulse
    • D is the last point of the pattern, and once it has been formed, the quotes are expected to reverse
    • The ABCD pattern is relevant for the Forex, stock, commodities, and other financial markets. It gives signals for both buy and sell trading. It is suitable for trading in all market conditions (range, uptrends, and downtrends) and in different time frames.

    https://blog.roboforex.com/wp-content/uploads/2022/11/ABCD-1-768x533.jpg

    How an ABCD bullish pattern is formed
    • The first impulse of the AB price movement is downwards
    • In the BC section, the price reverses and rises to 61.8-78.6% of AB
    • On the final stretch CD, the price reverses downwards and reaches 127.2-161.8% of the BC wave. The CD segment should be approximately equal to the first AB impulse
    • Once the pattern is formed, quotes are expected to rise from point D
    Rules for trading the bullish ABCD pattern
    • A buy position can be opened once the D-point has been formed and quotations have started to reverse upwards
    • The Stop Loss should be placed just below the pattern low at point D
    • Take Profit can be based on the C point or the maximum value of the pattern at A
    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team


    Leave a comment:


  • RF roboforex
    replied
    Dear traders!

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

    The 140th competition of "Demo Forex" is running at "full speed".
    The 389th competition of "Week with CFD" has just started.
    The 523rd competition of "Trade Day" will start on 30.11.2022 at 12:00.
    The 437th competition of "KingSize MT5" will start on 01.12.2022 at 20:00.

    Do not forget that for winning any of our demo contests you will receive funds to your real account that you can use to start trading in the Forex market instead investing your own savings.

    Good luck!

    Sincerely,
    RoboForex Contest

    Leave a comment:


  • Vlad RF
    replied
    Is the Interest Rate Growth Cycle Coming to an End?

    Market participants expect that the US Federal Reserve (Fed) monetary policy tightening cycle is coming to an end. The US inflation rate eased to 7.7% in October, further strengthening the belief that the regulator's head, Jerome Powell, will soften his rhetoric. Against this background, the S&P 500 index (US500) is up 15% in two months.

    Is there really any reason for optimism? In this article, we will try to analyse what is happening to the US economy now, what parameters Mr. Powell is focusing on, why the inflation rate fell in October, and whether there is a chance that this dynamic will continue in the future.

    What parameters does Jerome Powell monitor?

    After the COVID-19 pandemic crisis, we saw a sharp rise in inflation. At the time, many investors were saying that it was time to raise the interest rate, otherwise, it would not be possible to control inflation with monetary means.

    In his speeches, Jerome Powell said that inflation is temporary, there is no need to rush to tighten the monetary policy, and the interest rate hike will start after unemployment has fallen to 2019 levels.

    In March 2022, the unemployment rate fell to 3.8% in line with pre-crisis levels, and the Fed started a cycle of interest rate hikes already in April.

    https://blog.roboforex.com/wp-content/uploads/2022/11/FRS.png

    Many market participants are now wondering when the Fed will bring its monetary policy tightening cycle to an end. On 3 November, Jerome Powell said: "Before rates peak, we need to see a sustained decline in inflation and a series of declining monthly figures will be good evidence of that. Continued rate hikes will be needed to have a sufficiently restrictive effect on the economy and bring inflation back to the Fed's 2% target."

    This means that one month's data would not change anything, while all the attention of the head of the regulatory body is currently not on the labour market, but on the inflation rate.

    Has the US economy suffered from the Fed’s actions?

    A further interest rate hike could bring down the US economy – this is the view increasingly being relayed by the media. If we look at the rate increase, it has risen from 0.25% to 4% in 7 months. Such an increase was only seen in the 1970s during the economic crisis, which was accompanied by high inflation.

    The first thing we will look at when seeking to find out whether the US economy has been hurt by the Fed's actions is the labour market. Yes, large companies – like Meta Platforms Inc. (NASDAQ: META), Tesla Inc. (NASDAQ: TSLA), and Snap Inc. (NYSE: SNAP) – have reported layoffs, but if we take a look at the number of layoffs in the country, we can see that the figure has been declining since 2021.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Leave a comment:


  • Vlad RF
    replied
    RoboForex: upcoming changes to the trading schedule in view of Thanksgiving holiday in the US

    We are informing you that changes will be made to the trading schedule due to the Thanksgiving holiday in the US.

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

    MetaTrader 4 / MetaTrader 5 platforms

    Schedule for trading on CFDs on US indices (US30Cash, US500Cash, and USTECHCash) and CFD on the Japanese index JP225Cash
    • 24 November 2022 – trading stops at 7:40 PM server time.
    • 25 November 2022 – trading stops at 8:00 PM server time.
    Schedule for trading on CFDs on Metals (XAUUSD and XAGUSD) and CFDs on oil (Brent and WTI)
    • 24 November 2022 – trading stops at 7:40 PM server time.
    • 25 November 2022 – trading stops at 8:00 PM server time.
    Schedule for trading on CFDs on US stocks
    • 24 November 2022 – no trading.
    • 25 November 2022 – trading stops at 8:00 PM server time.

    R StocksTrader platform

    Schedule for trading on US stocks and ETFs
    • 24 November 2022 – no trading.
    • 25 November 2022 – trading stops at 8:00 PM server time.
    Schedule for trading on CFDs on US stocks and ETFs
    • 24 November 2022 – no trading.
    • 25 November 2022 – trading stops at 8:00 PM server time.
    Schedule for trading on CFDs on US indices (US500, US30, and NAS100)
    • 24 November 2022 – no trading.
    • 25 November 2022 – trading stops at 8:00 PM server time.
    Schedule for trading on CFDs on Metals (XAUUSD and XAGUSD) and CFDs on oil (WTI.oil, BRENT.oil)
    • 24 November 2022 – trading stops at 7:40 PM server time.
    • 25 November 2022 – trading stops at 8:00 PM server time.

    cTrader platform

    Schedule for trading on CFDs on Metals (XAUUSD and XAGUSD)
    • 24 November 2022 – trading stops at 7:40 PM server time.
    • 25 November 2022 – trading stops at 8:00 PM server time.

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

    Sincerely,
    RoboForex team

    Leave a comment:


  • RF roboforex
    replied
    Dear traders!

    This week, the ContestFX project will continue with the following trading competitions:

    The 140th competition of "Demo Forex" has crossed its "Equator".
    The 388th competition of "Week with CFD" has kicked off today.
    The 522nd competition of "Trade Day" will start on 23.11.2022 at 12:00.
    The 436th competition of "KingSize MT5" will start on 24.11.2022 at 20:00 .

    To participate in our contest, all you need to do is to go through the account registration procedure just once, getting access to all of the contests in a couple of mouse clicks. If you win, you can start trading in the Forex market with the funds received as your prize instead of investing your own savings.

    Join us!

    Sincerely,
    RoboForex Contest

    Leave a comment:


  • Vlad RF
    replied
    How to Trade the Bat Pattern

    In this review we will get acquainted with the popular harmonic pattern "Bat". We will learn how to find it on the price chart and what trading signals it gives. We will consider the rules and examples of its formation.

    Description of the “Bat” pattern

    The harmonic Bat pattern is a 5-point graphical pattern formed by taking into account certain Fibonacci ratios. It was introduced by Scott Carney in 2001. The figure has a similar structure to the Gartley's Butterfly, but they differ in Fibonacci ratios.

    It has five points (X, A, B, C and D) and four price swings (XA, AB, BC and CD). The last point in the pattern is D, which is a potential reversal zone. Its appearance is seen as a signal to open buy or sell positions.

    This chart pattern is formed on a variety of timeframes. Often it represents a correction area, after the end of which the preceding trend is likely to continue. For more reliable signals, this pattern can be used in conjunction with classic means of technical analysis - trend lines, support and resistance levels.

    https://blog.roboforex.com/wp-content/uploads/2022/11/bat-1.jpg

    Rules for shaping the “Bat” pattern

    Like many other harmonic patterns, the Bat is defined by Fibonacci ratios. There are automated ways to find this pattern on the chart - special indicators. But you can also determine it yourself, knowing the rules of formation:
    • XA is the first impulse of the price movement on the chart.
    • AB - correction from the first XA movement, ranging from 38.2% to 50%.
    • BC - can range from 38.2% to 88.6% of the wavelength of AB.
    • CD, the final wave, is an extension of 161.8% to 261.8% of the BC section and ends at about the 88.6% correction level of the XA wave.
    • The emergence of the D-point is the final stage of formation.

    How a bullish Bat pattern is formed
    • Wave XA is formed as a result of an upward price impulse.
    • The price then reverses in AB and corrects from 38.2% to 50% of the XA segment.
    • On the BC section, price reverses again and rises to 38.2-88.6% of the AB wave.
    • In the final CD phase, the price reverses downwards and reaches approximately 88.6% of the first XA impulse.
    • After the formation of the pattern, quotes are expected to rise from point D.

    Rules for trading the bullish Bat pattern
    • A buy position can be opened once the D-point has been formed and quotations have started to reverse upwards.
    • The Stop Loss should be placed just below the pattern low at point X.
    • The Take Profit can be based on the B point, the C point or the maximum value of the pattern at the A point.

    https://blog.roboforex.com/wp-content/uploads/2022/11/bat-2.png

    Example of bullish trading in the Bat pattern

    A pattern has formed on the H1 chart of the GBP/USD currency pair. After the start of the upward movement from point D, a buy position can be opened. Stop Loss is placed just below point X, profit taking targets are points A, B, C and higher if there is a strong upward movement.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

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  • RF roboforex
    replied
    Dear traders,

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

    The 140th competition of "Demo Forex" has been running since last Monday.
    The 387th competition of "Week with CFD" has just started.
    The 521st competition of "Trade Day" will start on 16.11.2022 at 12:00.
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    Let us remind you that in case of victory, all winners of our contests receive prize funds to their real accounts, and they can use them to trade on the Forex market instead of investing their own savings.

    Good luck!

    Sincerely,
    RoboForex Contest

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