Announcement

Collapse
No announcement yet.

RoboForex - Forex Broker: overview and news

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Best Short-term Strategies: GBP/JPY Range

    Author: Andrey Goilov


    Trading GBP/JPY might be quite tricky because it is so volatile: its average volatility range exceeds 100 points. However, closer to the Asian trading session the market calms down and sometimes forms a range, pushing the pair out of it by the main trend.

    A short-term strategy called GBP/JPY Range uses no indicators; it includes pending orders which shortens your time in front of the terminal. Moreover, working by the strategy, the trader does not choose or forecast the market direction but simply follows the price.

    The article is devoted to the idea of this strategy, its trading principles, and to generally checking whether the authors of the strategy have managed to pacify such a volatile pair.

    Description of GBP/JPY Range

    For trading by the strategy, we use the M15 chart of the GBP/JPY pair. Stick to the closing time of the American and opening time of the Asian sessions. This is 23:00-02:00 terminal time.

    Draw horizontal lines through the high and lows of the price in the mentioned timeframe. Then place pending orders for breakaways a bit higher and lower than the drawn levels. If one order gets triggered, delete the second one. If none is triggered over 4 hours, delete both and try again on the next day.

    Note that the narrower the corridor, the less it is possible that a strong movement will develop. If the range is quite wide, it is unlikely that the movement will continue after the breakaway. In practice, higher volatility changes for lower, then for higher, and over and over again. It is important that we notice low volatility to catch higher volatility later.

    If the channel is wide, volatility is high, hence, there will be no movement after the breakaway. By the rules of the strategy, if the channel is over 70 points wide, you should not trade.

    Selling by the GBP/JPY Range

    As an example of a selling trade, let us take a breakaway of the channel downwards. We mark the beginning of the channel at 23:00 (11 p.m.); the low of the channel is at 152.74, the high is around 152.86. At 03:00 (3 a.m.) the lower border of the channel was broken, and the price went down. Place a Take Profit at the level of two ranges. This time, the movement was strong and triggered the TP at 152.50.

    https://blog.roboforex.com/wp-content/uploads/2021/08/Pic-1.png

    In this strategy, we need a Sell Stop pending order as it opens a selling position below the current market price. By the strategy, we must place it 2 points below the low of the range. In our case, it is 152.72.

    https://blog.roboforex.com/wp-content/uploads/2021/08/Pic-2.png

    Place a Stop Loss behind the high of our range to avoid random price movements against our position. Hence, we place it at 151.95.

    Read more at R Blog - RoboForex

    Sincerely,
    RoboForex team

    Comment


    • How to Trade Morning Star and Evening Star?

      Author: Maks Artemov


      This overview is devoted to two reversal candlestick patterns: Morning Star and Evening Star.

      These two are definitely rare visitors to charts, yet they remain quite popular. Like other reversal patterns, the Morning and Evening Stars form at the highs and lows of the price and contain three candlesticks each.

      How does a Morning Star form?

      This pattern forms at the lows of the price chart. When a descending impulse is going to subside, the price makes a minor surge upwards, so that the candlestick opens and closes with a gap.

      Conditions required for the pattern to appear:
      1. A support or resistance level;
      2. The first candlestick has a long body of the same color that the current trend is – and small shadows.
      3. The second candlestick opens with a gap, has a small body and short shadows. It may be of the opposite color that the current trend is; in most cases, it has little significance anyway.
      4. The third candlestick opens with a gap and closes above the opening price. It must be of different color than the first candlestick.
      Open a position after the third candlestick closes. Place a Stop Loss at the low of the pattern. If you are trading an instrument with a large spread and on a small timeframe, you may add the average spread to the low to compensate for the error.

      You may place a Take Profit at the nearest resistance level or as 1:4 to the SL.

      A Morning Star looks as follows:

      https://blog.roboforex.com/wp-content/uploads/2021/09/Morning-Star-1-1198x630.png

      How does an Evening Star form?

      An Evening Star appears at the highs of the price chart, and its structure is totally opposite to that of the Morning Star.

      Conditions required for the pattern to appear:
      1. A support or resistance level
      2. The first candlestick is ascending; it has a long body of the same color that the current trend is.
      3. The second candlestick has a small body and opens with a gap. The color of the candlestick is irrelevant.
      4. The third candlestick also opens with a gap; its color is opposite to that of the first one, and the closing price is below the opening price.
      Place an SL at the high of the pattern. As with the Morning Star, you may compensate for the error by placing the SL plus the average spread. The TP belongs to the nearest support level or is at 1:4 ratio with the SL.

      Read more at R Blog - RoboForex

      Sincerely,
      RoboForex team

      Comment


      • What Is Stock Split and How Does It Influence Stock Price?

        Author: Victor Gryazin


        This article is devoted to such an idea as a split of stocks, its influence on the stock price and on how attractive they are for investors

        What is a stock split

        A stock split is an increase in the number of stocks of the issuer in circulation that entails a decrease in the stock price but not in the general capitalization. This is a wide-spread market practice, naturally supported by the company's desire to make their expensive shares more affordable to a wide range of investors.

        Many actively developing companies are interested in an in-flow of extra money that new investors can bring. However, not every investor can afford promising and expensive stocks.

        Hence, to make stocks cheaper and more affordable, the split procedure is run to. As a result, the number of stocks increases and their price drops proportionally. This makes the stocks more affordable to investors.

        For example, if a company increases the number of its shares five times, i.e. carries out a split of 5:1, investors can have 4 extra shares per each they already have.

        At the same time, the price of one share decreases proportionally: if initially a share cost $1,000, after the split it will cost $200. Hence, each shareholder of this issuer will have 5 times as many shares but their total price will not change.

        Critical points of stock splits

        The split coefficient that shows how much the number of stocks changes after the procedure, is normally anything between 2:1 and 10:1. In the split procedure, there are three main dates:
        • The day of announcement. To get started, the company makes a public announcement of its plans for a stock split and all the details that investors need to know. This information usually includes the split coefficient and the day when the split is to happen.
        • Register closing day: this is an important day when the list of the company's shareholders is settled. These people will get extra shares after the split.
        • The split day is the day when new stocks appear on the investors' broker accounts and start trading at the new price.
        What is a reverse split?

        There is another procedure known as the reverse split that also changes the number if stocks in portfolios. It is also called stock consolidation.

        By this procedure, the stocks that investors hold are changed by a proportionally smaller number of stocks. For example, a reverse split of 1:3 makes every three shares into one. This means that if you used to hold 30 shares of the company, after a stock consolidation you will have only 10 but the price of each share will grow three times.

        For example, if the stocks did horrible, trading low under a dollar, a reversed split can raise their price.

        How does a split influence the stocks and investors?

        On the whole, a stock split is interpreted as a good event for the issuing company, though it does not influence its capitalization directly. A split means that the company is developing, doing well, and the growth of its shares confirms it. Carrying out a split, the company signals that it wants to make its shares more attractive and affordable to private investors.

        A decrease in the price makes the shares more affordable to investors and more liquid. The history of splits shows that the growth of stocks after a split usually exceeds the growth of major stock indices. Hence, after a split, the portfolio of an investor can have a significant profit, if the shares keep growing.

        Read more at R Blog - RoboForex

        Sincerely,
        RoboForex team

        Comment


        • RoboForex wins prestigious awards in the financial sector

          We’ve always tried to maintain the high level of the services we provide and introduce pioneer products. Our efforts were not for nothing – they were recognised with prestigious awards of the financial industry: "Best Investment Products (Global)" at Global Brands Magazine Awards, "Most Trusted Broker – Global" according to International Business Magazine Awards, "Best Multi-Asset Trading Platform (LatAm)" and "Best Prime Trading Account (Asia)" at Global Banking & Finance Awards.


          Counting these awards, the total number of titles received by RoboForex has reached 30. However, the most valuable and precious award for us is the trust of our clients and partners, who has been choosing our company for cooperation for 11 years now. We truly appreciate your trust and are very thankful for the choice you made.


          Sincerely,
          RoboForex team

          Comment


          • How to Filter Stochastic Signals?

            Author: Andrey Goilov


            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.

            https://blog.roboforex.com/wp-content/uploads/2021/09/Pic-1-1.png

            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.

            https://blog.roboforex.com/wp-content/uploads/2021/09/Pic-2-1.png

            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

            Comment


            • How to Trade Linear Regression Indicator

              Author: Andrey Goilov

              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.

              https://blog.roboforex.com/wp-content/uploads/2021/10/Pic-1.png

              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.

              https://blog.roboforex.com/wp-content/uploads/2021/10/Pic-2.png

              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

              Comment


              • RoboForex wins the “Best Affiliate Programme (Global)” award

                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.

                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

                Comment


                • How to Trade “Tasuki Gap” Pattern?

                  Author: Victor Gryazin


                  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.

                  https://blog.roboforex.com/wp-content/uploads/2021/10/TasukiGap-en.jpg

                  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

                  Comment


                  • How to Use the Current Ratio Multiplier for Stock Analysis

                    Author: Maks Artemov


                    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:

                    https://blog.roboforex.com/wp-content/uploads/2021/10/cr-1-1200x282.png

                    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

                    Comment


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


                      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

                      Comment


                      • RoboForex improves trading conditions and opportunities for its clients

                        The company is constantly working on the optimization and the improvement of our products, so we’re pleased to inform you about the result of the work we have conducted:
                        • Order execution is now faster.
                        • Swaps are better.
                        • Spreads are lower.

                        12 new cryptocurrencies are already available for trading

                        Also, RoboForex has expanded the list of trading assets by adding 12 popular digital currencies: Bitcoin Cash, Cardano, Chainlink, Cosmos, Dogecoin, Litecoin, Monero, Polkadot, Ripple, Solana, Stellar, TRON.

                        Our clients can now trade 16 cryptocurrency instruments with the best conditions:
                        • 24/7 trading.
                        • Leverage up to 1:50.
                        • Deposits from $10.

                        New instruments are already available in MetaTrader 4, MetaTrader 5, and R StocksTrader. More detailed trading conditions for all types of accounts can be viewed on the "Contract specifications" page.


                        We continue our systematic work on the company’s products from the perspective of our clients and try to provide them with the best trading conditions, a wide range of instruments, and consistently high quality of services.

                        Sincerely,
                        RoboForex team

                        Comment


                        • What are Forex Cent Accounts Needed For?

                          Author: Victor Gryazin


                          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

                          Comment


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

                            Author: Maks Artemov


                            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

                            Comment


                            • MACD + ADX Trading Strategy

                              Author: Andrey Goilov

                              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.

                              https://blog.roboforex.com/wp-content/uploads/2021/10/1-adx-1.png

                              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

                              Comment


                              • How to Trade EUR/GBP?

                                Author: Igor Sayadov


                                There are eight currencies in the world, recommended by the International Monetary Fund (IMF) for storing gold reserves. They would be:

                                1. USD – US dollar
                                2. EUR – euro
                                3. GBP – Great Britain pound
                                4. AUD – Australian dollar
                                5. NZD – New Zealand dollar
                                6. CAD – Canadian dollar
                                7. CHF – Swiss franc
                                8. JPY – Japanese yen.

                                The pairs constituted by 7 main currencies against the US dollar are called majors: EUR/USD, GBP/USD, AUD/USD, NZD/USD, USD/CAD, USD/JPY, USD/CHF.

                                All other pairs traded in Forex that do not include the USD are called cross-rates.

                                Majors make up for 70% of all daily turnover in Forex; cross-rates make up for the remaining 30%. While among majors, the most widely used is EUR/USD, among cross-rates, EUR/GBP is the most popular one.

                                This article is devoted to this currency pair, its history and peculiarities, and trading strategies that suit it.

                                Short history of EUR/GBP

                                The EUR/GBP pair appeared right after the European Union was formed because it was necessary to establish trade relations between the two largest economies in Europe. Britain entered the EU in 1998, keeping its own currency and credit and monetary policy.

                                In 2016, the country decided to exit the EU. Brexit, which used to be the main source of talks before the coronavirus, came into force in 2020. Naturally, such dramatic changes affected the cross-rate of EUR/GBP.

                                On MN, we can see an uptrend coming to an end in 2016 and a consolidation range form at this high until 2020. After Britain signed an agreement about its final exit from the EU, the quotations started a new wave of decline.

                                https://blog.roboforex.com/wp-content/uploads/2021/11/gbpusd-2016-2020-1200x561.png

                                What influences EUR/GBP quotations

                                EUR/GBP is neutral to the US economy and performs no stunts characteristic of other pairs when some important news in the USA emerge.

                                This pair mostly reacts to inflation data in the EU and Britain. Also, check the pair when the ECB and Bank of England change interest rates.

                                As a rule, cross-rates react to such events by long-term trends. So, before such news emerge, single out a consolidation area and wait for exiting these areas by the trend.

                                Read more at R Blog - RoboForex

                                Sincerely,
                                RoboForex team

                                Comment

                                Working...
                                X