RoboForex - roboforex.com

[RoboForex Contest]

Dear traders!

This week, the ContestFX project, as usual, continues with the following competitions on demo accounts:

The 137th competition of "Demo Forex" has been running since the beginning of the month.
The 375th competition of "Week with CFD" has just started.
The 509th competition of "Trade Day" will start on 24.08.2022, at 12:00.
The 423rd competition of "KingSize MT5" 25.08.2022, at 20:00.

Let us remind you that all winners of our contests receive prize money to their real trading accounts, and they can use them to perform trading operations on the Forex market without investing their own financial savings.

We wish you a winning trend!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex: important information in view of Tesla's stock split on 25 August 2022

Dear Clients and Partners,​

On 25 August 2022, Tesla will have its stocks go through a split. A stock split is a corporate action, as a result of which the company increases the number of issued shares by a specific multiplier and reduces the value of each share by the same multiplier.

Tesla will conduct a 3-for-1 stock split (1 share will be split into 3).

How will this affect positions and orders?​

If you have open positions in Tesla shares or plan to open such positions, please pay attention to the following changes, which will be effective as of 25 August 2022:

MetaTrader 4 / MetaTrader 5 accounts

The split procedure will take place on 25 August and will be completed prior to the US Stock session's start at 16:30 (server time).

• All pending orders (Buy Limit, Buy Stop, Sell Limit, Sell Stop, Buy Stop Limit, Sell Stop Limit, Stop Loss, and Take Profit) in TSLA will be cancelled.
  
• For positions in TSLA, the opening price will be divided by 3.
  
• The volume of each open position in TSLA will be multiplied by 3.

Please note that if you are using an Expert Advisor (EA), we suggest that you check with its developers whether its code needs any modifications to ensure the correct interpretation of the price data after the stock split.

R StocksTrader accounts

The split procedure will take place on 25 August and will be completed prior to the US Stock session's start at 16:30 (server time).

• During the split procedure, all active pending orders (Buy Limit, Sell Limit, Stop Loss, and Take Profit) in TSLA (CFD) and TSLA.nq will be cancelled.
  
• For positions in TSLA (CFD) and TSLA.nq opened before the split, the opening price will be divided by 3.
  
• The volume of all open positions in TSLA (CFD) and TSLA.nq will be multiplied by 3.
  
• All positions in any of these instruments in the same direction and on the same account will be combined into one new position. This new position will have the opening price and a volume based on an average weighted price of all positions held before the split.

The historical charts in your trading terminal will be updated to reflect the new prices of the above-mentioned instruments.

All other aspects of trading conditions shall remain intact. Please take this information into account when planning your trading activity.

Sincerely,
RoboForex team

 

[Vlad RF]

How to Use Dow Theory in Technical Analysis

Author: Andrey Goilov

Dear Clients and Partners,​

There is an opinion that modern tech analysis is based on the Dow theory, and today we will speak about this unique Charles Dow’s theory that still remains quite efficient. Also, we will discuss how this approach can be used in trading.

What is Dow theory

A series of Dow’s articles in the Wall Street Journal helped William P. Hamilton, Robert Rhea, and George Schaefer design a market research theory.

The Dow theory is an approach to trading based on six principles. The main focus is on price highs and lows that help detect the current trend. Also, each outer factor, such as news or random events, is supposed to be already incorporated in the price. The Dow theory in technical analysis remains topical these days as well.

Initially, the principles were used for the railway and industrial indices only that were included in the Dow Jones Industrial Average. However, some research proves the efficacy of the principles for the stock market as well.

For example, Martin Pring in his book Technical Analysis Explained wrote that the stocks from the Dow Jones index bought in 1987 for 44 USD could have yielded about 2,500 USD of profit if sold in 1990.

Charles Dow theory principles

As said above, the whole of the Dow theory is based on six principles. Let us take a look at each of them in a more detail.

Market cares for everything

All events and factors have already been taken account of by the market and included in the price. Absolutely any event that might happen, even a disaster or an earthquake, is valid. The principle is also known as “Market depreciates everything”.

For example, if a company is getting ready to present a great report, the market is likely to account for it even before the report appears. In other words, the demand for the shares of the company will grow in advance, and after the report is published, the growth might stop.
Moreover, the quotes might fall when a strong report is published because the report might turn not as great as expected

There are three types of trend

Charles Dow defined the trend but never made a focus on uptrends, downtrends, and flats as in classical tech analysis. Nonetheless, his definition of the trend remains efficient. It says that in an uptrend, each next high and low is higher than the previous one. In this principle of the Dow theory the length of trends is estimated:

• A primary trend lasts for longer than a year, sometimes for several years. It is supposed that the main mass of investors in the stock market looks for a primary trend chiefly.
• A secondary trend, a.k.a. intermediate trend, lasts from three weeks to three months. It might reach up to 50% of correction of the primary trend.
• A small trend lasts for no more than three weeks. It consists of minor fluctuations inside a secondary trend. In modern trading, it is mostly called a short-term trend.

Dow theory in technical analysis

Charles Dow theory is quite easy to adapt to modern markets. Jesse Livermore said that markets are moved by the psychology of market players. Though there have appeared new markets, psychology has never changed; hence, the patterns and laws discovered by Charles Dow on charts will be working in the future as well.

What do you think about the Dow theory plus Forex? Indeed, these days it is used in Forex as well. For example, we trade the trend and combine different timeframes for signal search.

Trend reversals that appear when the price cannot renew the previous high often lead to the appearance of such patterns as the Head and Shoulders and Double Top.

And if we trade a bullish trend, some traders who use tech analysis think that one should buy when the price breaks through a high or nears the preceding low. If the trend is strong, a breakaway of the high can push the price further up and will not let the price fall below the previous low.

There might be no direct correlation between the Dow theory and Forex, but most often the ideas of price behaviour described above coincide with the analysis practises by modern traders. With graphic patterns, forecasts by the Dow theory can be made.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, RoboForex's project called ContestFX invites you to the following competitions:

The 137th competition of "Demo Forex" has entered the final phase.
The 376th competition of "Week with CFD" has just started.
The 510th competition of "Trade Day" will start on 31.08.2022 at 12:00.
The 424th competition of "KingSize MT5" will start on 01.09.2022 at 20:00.

If you've never taken part in our contests before, trust me, it's easy to do it: go through a simple registration procedure, and get access to any of the competitions you like in just a couple of mouse clicks

Join us, it won't be boring!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Trade by Antitrend Strategy

Author: Andrey Goilov

Dear Clients and Partners,​

Not all traders like to trade the trend: there are deep corrections able to kick even a most patient investor out of the market. When trading against the trend, the results of a trade take much less time to wait for. And if the trader masters catching reversals, risks will also be small.

A trading strategy called the Antitrend strategy allows looking for such signals in stock indices. For successful work, only one indicator is needed, set up especially for the DAX index, the most important stock index in Germany.

The article explains how to trade with the Bulls Power indicator, what peculiarities selling and buying trades have, and how Stop Loss and Take Profit can be placed.

What Antitrend strategy is like

By the Antitrend strategy, trading occurs on H4. Signals will be few but quite noticeable – on smaller timeframes, the number of false signals is overwhelming.

The strategy is based on using a not-so-popular indicator Bulls Power with a standard period. The instrument calculated the difference between an Exponential Moving Average with period 13 and the high of the price.

If the trend is bullish, the bars of the indicator are above zero, growing. This means buyers are strong, they have enough power to renew highs. And if the trend is bearish, indicator values drop below zero and are declining, demonstrating bearish pressure.

It is recommended to enter a trade only when Bulls Power reaches certain levels. For buying and selling, these levels are different. This tactics is applicable to all global indices but the levels are designed for the DAX index.

Closing thoughts

The Antitrend strategy is meant for trading the DAX stock index at strong impulses on an H4 chart. Signals will be few because levels for the Bulls Power indicator are extreme, and the timeframe is large.

However, this is more like an advantage for traders who do not want to enter the market frequently: they will be free of spending a lot of time before charts, constantly analysing price movements.

The rules for the strategy are extremely simple, and risk management is efficient because the profit-to-risk ratio is 3 to 1. Hence, such tactics can be used as an option for additional earnings.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of the Labor Day

Dear Clients and Partners,​

We are informing you that changes will be made to the trading schedule due to the Labor Day 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 US indices (US30Cash, US500Cash, and USTECHCash) and the Japanese index J225Cash

• 5 September 2022 – trading stops at 7:45 PM server time.
• 6 September 2022 – trading starts as usual.

Schedule for trading on Metals (XAUUSD and XAGUSD) and CFDs on oil (Brent and WTI)

• 5 September 2022 – trading stops at 7:45 PM server time.
• 6 September 2022 – trading starts as usual.

Schedule for trading on CFDs on US stocks

• 5 September 2022 – no trading.
• 6 September 2022 – trading starts as usual.

R StocksTrader platform

Schedule for trading on US stocks and ETFs

• 5 September 2022 – no trading.
• 6 September 2022 – trading starts as usual.

Schedule for trading on CFDs on US stocks and ETFs

• 5 September 2022 – no trading.
• 6 September 2022 – trading starts as usual.

Schedule for trading on CFDs on US indices (US500, US30, and NAS100) and the Japanese index JPY225

• 5 September 2022 – trading stops at 7:45 PM server time.
• 6 September 2022 – trading starts as usual.

Schedule for trading on Metals (XAUUSD and XAGUSD) and CFDs on oil (WTI.oil, BRENT.oil)

• 5 September 2022 – trading stops at 7:45 PM server time.
• 6 September 2022 – trading starts as usual.

cTrader platform

Schedule for trading on Metals (XAUUSD and XAGUSD)

• 5 September 2022 – trading stops at 7:45 PM server time.
• 6 September 2022 – trading starts as usual.

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

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

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

The 138th competition of "Demo Forex" and the 377th competition of "Week with CFD" have just started.
The 416th competition of "Trade Day" will start on 07.09.2022 at 12:00.
The 425th competition of "KingSize MT5" will start on 08.09.2022 at 20:00.

All winners of our contests receive prize money to their real accounts using which they can perform trading operations on the Forex market without investing their own financial savings.

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

Sincerely,
RoboForex Contest

 

[Vlad RF]

Trading Like Sperandeo: 1-2-3 Reversal and 2B Pattern

Author: Victor Gryazin

Dear Clients and Partners,​

In this article, we will discuss the trading methods of a famous Wall Street trader Victor Sperandeo. A long-time experience of trading on exchanges and managing investments as well as several books on trading have brought Sperandeo the popularity he deserves.

How to draw a trend line?

According to the definition from tech analysis, a trend is a period when the price is moving mostly in one direction, either growing or declining. In other words, a trend is a price movement in one direction. A trend can be explained by economic, political factors or force majeure events.

Sperandeo singles out three types of a trend in terms of its length; they can be active simultaneously and move in opposite directions:

• Short-term trend lasts from several days to several weeks, 14 work days on average
• Mid-term trend lasts from several weeks to several months
• Long-term trend lasts from several months to several years.

Any of this trends can be traded; traders usually aim at short- and mid-term trends while investors – on mid- and long-term ones. To trade reversal patterns, we need the market to move in an up- or downtrend.

An uptrend is a price move in which each next high is higher than the previous one and each next low is also higher than the previous one.
A downtrend is characterized by each next high and low being lower than the previous one.
An important aspect of trend analysis is drawing the trendline. When the price breaks out the trendline, it signals the beginning of a correction or a trend reversal. For drawing the trendline, the following rules are used:

• The trendline in an uptrend is drawn on the chart through 2 points: the first point is the low preceding the absolute high of the trend; the second point is the first low the uptrend has started from. If the trendline crosses the chart, the second point (the farthest low) is transferred to the next closer low for the trendline not to cross the price chart.

Trend reversal 1-2-3

The rule of Sperandeo trend reversal 1-2-3 comes into force when the price chart breaks out the trendline. This is the first signal of a possible trend reversal, which may precede a 1-2-3 reversal. Below, we will discuss in detail the rules of formation of this reversal and trading it in an up- and downtrend.

A 1-2-3 reversal in an uptrend

• Find an actual uptrend on the price chart and draw a trendline.
• After the trendline is broken out, name the high preceding the breakout as point 1 and the low formed after the breakout – point 2.
• After point 2 is formed, a new ascending impulse in the direction of the trend forms. A short-term exceeding of point 1 is possible (it is called a false breakout) – it must be followed by a strong pullback down. The new high is named point 3.
• The 1-2-3 reversal comes into force if the price goes further down renewing the low in the point 2. Open an selling position, putting an SL above point 3.

We have described an original conservative way of trading a 1-2-3 reversal by Victor Sperandeo. Sometimes, I use a more aggressive way of trading – I trade right after point 3 is formed. The signal might be a false breakaway or some Price Action reversal pattern. This is less trustworthy because the reversal has not been confirmed yet (point 2 has no been broken out) but this method allows to enter the market with a smaller SL and a more profitable profit to loss ratio.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How Economic Recession Influences Investors' Behaviour

Author: Victor Gryazin

Dear Clients and Partners,​

This overview describes what economic recession is and why it happens. We will analyse a case of global economic recession and see some advice concerning how to behave during a crisis.

What is economic recession

Recession is a serious and lengthy decline of economic activity, characterised by a decrease in production and employment that results in falling of income and spending of households. This phenomenon may last over several months and is usually followed by a decline of the GDP.

Experts from the US National Bureau of Economic Research (NBER) have given their own definition. They state that recession is a significant economic decline that starts at the high of preceding growth and ends at the low of subsequent falling.

The decline of economic activity must be quite deep and lengthy to have the right to be called recession. It may last just several months but it will take the economy years to get back to the previous peak.

Reasons for and signs of economic recession

Multiple economic theories struggle to explain why and how economy escapes a lengthy uptrend and starts falling. For example, abrupt and stable growth of oil prices due to a geopolitical crisis may lead to growth of spending at the global market and provoke a global economic recession.

According to the conclusion made by the US Congress Special Commission, the economic recession 2008-2009 was provoked by such factors as mistakes in financial regulations and in corporate management, excessively high debts of households, wide use of high-risk derivatives, and growth of non-regulated shadow banking.

Spread of COVID-19 in 2020 and quarantine restrictions are yet another example of an economic shock that can provoke recession. It might be just speeding up the process that could be inevitable due to other factors.

How US recession 2008 influenced global capital markets

The economic recession and crisis in 2008 followed a lengthy time of growth of housing prices and a boom of mortgaging in the US. The overall economic peak happened in December 2007,and the NBER considers this month the beginning of the recession. At the start, the decline of the economic activity was modest but sped up abruptly in autumn 2008 when stress in financial markets reached the top. The US GDP dropped from +2% to -2.6%, and the unemployment rate grew from 5% to 10%.

January 2007 through September 2009 large US and European banks lost more than $1 trillion on toxic assets and unsecured loans. A lack of confidence of investors in the paying ability of banks alongside loans becoming less affordable led to an abrupt decline of prices for goods and services. The crisis quickly turned into a global economic shock, making several large banks go bankrupt. Economy worldwide slowed down because crediting became tough and global trade went feeble.

This recession in the US became the longest one since World War 2 and lasted 18 months. The S&P 500 index started falling at the end of 2007 and, having lost more than 50%, began recovery only in the middle of 2009.

Global economic recession 2022

These days, the global economy is slowing down abruptly. War in Ukraine, growth of prices for energy carriers and foods alongside imbalance between the demand for them and supply provoke growth of global inflation. According to forecasts of analysts, a decline of the buying ability of households and toughening of the credit and monetary policy will bring down the growth of the US economy up to 2.3% this year and up to 1% in the next year.

In China, the slow-down of economic development turned out stronger than expected due to COVID-19 breakouts and imposed quarantine measures. In the Euro zone, growth dropped to 2.6% this year and will reach 1.2% next year. According to the forecasts of the IMF, inflation and the geopolitical crisis have already put the global economy on the verge of recession.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, RoboForex's project called ContestFX is waiting for everyone to participate in the following contests:

The 138th competition of "Demo Forex" entered its second week.
The 378th competition of "Week with CFD" has just kicked off.
The 512th competition of "Trade Day" will start on 14.09.2022 at 12:00.
The 426th competition of "KingSize MT5" will start on 15.09.2022 at 20:00.

It does not take much effort and time to participate in our competitions - all you have to do is to go through a simple registration procedure from your Personal Members Area on our website to get access to any of the contests you like.

Join us!

Sincerely,
RoboForex Contest