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[RoboForex Contest]

Dear traders!

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

112th competition of "Demo Forex" has entered its third week.
268th competition of "Week with CFD" just kicked off today.
401st competition of "Trade Day" will start on 22.07.2020 at 12:00 .
318th competition of "KingSize MT5" will start on 23.07.2020 at 20:00.

To become a contestant of our demo competitions with real prize money for the winners is very simple - all you've to do is to go through an easy registration procedure only once and then access any competition of your choice with just a few mouse clicks.

We're waiting for you on our website and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Trade DAX 30 Index: Safe and Proven Methods

Author: Maks Artemov

Dear Traders,​

Today, we will get acquainted with a stock index available for trading in many terminals - DAX 30 index.

What is DAX 30 index?

DAX 30 index​

The DAX 30 index appeared on July 1st, 1988. It is calculated as the weighted average value of stock price capitalization, while the stock price capitalization, in its turn, is counted based on just flexible stock prices. The index also includes dividend profit from stocks with the expectation that it will be reinvested in securities. To put it simply, the index reflects the general profitability of the capital. This is the main difference between DAX 30 and other indices.

DAX 30 peculiarities

The DAX 30 index is tightly connected to the economy of Germany: if the economic situation in the country is getting better, the index will also grow. The index includes 30 largest German companies traded at Frankfurt Stock Exchange: BMW, BAYER, ADIDAS, etc.

The list of companies included in the index is not fixed one and forever – it may change based on the capitalization of companies. If an enterprise is suffering serious losses, it may be excluded from the index; vice versa, if a company is gathering pace, increasing its profits and capitalization, it may be included in the index. The list of companies is corrected once in a quarter. The index is calculated during the working hours of the XETRA exchange from 9 a.m. through 5 p.m. CET.

Now let us figure out how to trade DAX 30 and what strategies to use.

How to trade DAX 30?

Main stock indices​

For many traders, indices are something outstanding, however, things are much simpler than they seem to be. You will get rid of any doubts if you compare the chart of any index to the charts of currency pairs or the charts of stocks.

The charts of indices and other instruments, be it bars or Japanese candlesticks, will not differ too much, which means that, theoretically, any trading strategies that already exist or will appear soon apply to them. I cannot speak about all trading strategies in one article, so let us concentrate on those without indicators.

Trading DAX 30 by graphic analysis

As with any other chart, the chart of DAX 30 frequently forms various graphic analysis patterns. It is quite easy to find them provided that the trader is acquainted with them. Trend continuation patterns are most frequent. Meanwhile, keep in mind the timeframe you are looking at. An index, or, in our case, a CFD of DAX 30 (DE30), is not a currency pair traded 5 days a week without breaks – an index stops trading at the close of the trading session.

RoboForex offers exceptional conditions for trading Indices. The spread for the DE30 index is from 0. More detailed information on the conditions is available at this page.

The algorithm of searching for graphic patterns

The algorithm of searching for graphic patterns consists of the following steps.

What timeframe to use for trading DAX 30 index?

This is an important factor because the profit and Stop Loss size depends on it. On a smaller timeframe, there will be much more trading signals during a trading session than on a larger one; the size of the SL will be more acceptable, and signals will be worked off quicker.

Trade intraday on M5 through M30; H1 is, to my mind, the maximum for trading intraday; H4 and higher will suit for trading on the medium term. Transferring your position to the next trading day, account for possible gaps at the market opening – sometimes they may impose certain inconvenience to the trader.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex adds 17 new methods for depositing funds

Dear Clients and Partners,​

For the convenience of our clients from Latin America, we’ve expanded the list of payment systems by adding 17 new ways of depositing funds to their trading accounts.

New payments systems for depositing are available in the following countries:

• Argentina: Pago Fácil and Rapipago.
• Columbia: Almancense Éxito, Carulla, Davivienda, Edeq (Empresa de Energia del Quindio), efecty, and Surtimax.
• Mexico: Banorte, BBVA Bancomer, OXXO, Santander Bank, and SPEI.
• Peru: PagoEfectivo and Western Union.
• Uruguay: Redpagos.
• Chile: Servipag.

These payments systems are already available in your Members Area and will allow our clients to transfer funds from 10 USD, which is very convenient for traders with cent and standard accounts. More detailed information about available payment systems can be found in the “Deposit & Withdrawal methods” section of our website.

We’d like to remind you that all RoboForex clients can receive "Profit Share Bonus" and "Classic Bonus" when depositing funds to their accounts.

Sincerely,
RoboForex team

 

[Vlad RF]

How to Trade Overbought and Oversold Areas?

Author: Victor Gryazin

Dear Traders,​

In this review, we will discuss trading overbought and oversold areas. A trader may use special indicators that analyze the dynamics of price changes and show the overbought and oversold areas.

What are overbought and oversold areas?

The notions "overbought" and "oversold areas" in financial markets indicate short-term fluctuations of the instrument values from the average. These terms say that the price has gone quite far in a certain direction. An overbought state of the market means that the price of a financial instrument has gone too high, while the oversold state means it is too low.

An overbought state is a significant increase in the price (in percent) in a short time or a lengthy series of several days in an uptrend. For example, oil price may become overbought if it leaps by 10-15% during two or three days or demonstrates pullback-free growth for several days.

As a result of being overbought, the price forms new local highs on the chart. After the bulls have pushed the price rather high, making the asset overbought, a correction downwards may follow at any moment.

When an instrument is oversold, local lows form on the chart. This means the bears have pushed the rate rather low, and an upward correction may start at any moment. Specially designed trading indicators may help the trader catch the overbought or oversold state of some asset. For this, an indicator has its window split in two areas: the overbought and oversold areas. Getting into those zones, indicators characterize the current financial situation of the instrument (whether it is overbought or oversold) and give certain trading signals.

Popular indicators for trading in the overbought and oversold areas

Stochastic Oscillator

The creator and greatest fan of this indicator is a popular stock trader George Lane. The Stochastic is an oscillator that demonstrates the current position of the price in % of the previous price range. The Stochastic evaluates the ability of the bulls and bears to close the price at the achieved extremes.

The Stochastic Oscillator is drawn in a separate window under the price chart and consists of two main lines: %K, the fast line, and %D, the slow line. The indicator values vary from 0 to 100%; through the levels of 20 and 80%, signal lines are drawn, singling out the oversold (0-20%) and overbought (80-100%) areas.

Oversold and overbought areas - Stochastic Oscillator​

Relative Strength Index (RSI)

This index pertains to the group of oscillators. It was created and propelled by J. Welles Wilder. The RSI assesses the position and dynamics of the current price related to the preceding period. The RSI is calculated in a separate window under the price chart.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, RoboForex's project called ContestFx will continue with these competitions on demo accounts.:

112th competition of "Demo Forex" has entered the final stage.
The weekly 269th competition of "Week with CFD".
402nd competition of "Trade Day" will start on 29.07.2020 at 12:00.
319th competition of "KingSize MT5" will start on 30.07.2020 at 20:00.

Let us remind you that all winners of our trading contests will receive rewards in the form of prize money to their real trading accounts. They can start effective trading on the Forex market without investing their own financial resources.

Good luck to all traders!

Sincerely,
RoboForex Contest

 

[Vlad RF]

Providec Trading System: Simple Strategy for Beginners

Author: Timofey Zuev

Dear Traders,​

The Providec trading strategy is one of the simplest Forex strategies that I have ever seen: just two indicators than never close the price chart. The trading strategy suits any currency pair or any other instrument featured by the MetaTrader 4 or MetaTrader 5 terminal, be it futures, stocks, of CFDs. The timeframe may vary from M1 to MN.

If the timeframe is shorter than H1, open orders in the European or American sessions only. As soon as the American session is over, close all trades regardless of their results. Conversely, if you trade on H1 or higher, you may leave trades in the market for as long as you wish.

The Providec strategy desktop

Providec strategy​

Description of the desktop:

1. The Providec indicator that gives direct signals to buy or to sell by the strategy.
2. The ProvidecTrend indicator that filters the signals of Providec.

A signal to buy by the Providec system

A signal to buy needs several conditions to be met:

1. The Providec indicator must show a green arrow aimed upwards.
2. The ProvidecTrend indicator must be green.
3. The green arrow of Providec must be the first green line to emerge after ProvidecTrend changed from red to green.

An example of a signal to buy by the Providec system

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Trade Nikkei 225 Index

Author: Andrey Goilov

Dear Traders,​

Nikkei 225 is one of the most important stock indices reflecting the state of the Japanese economy and overall business activity in the country. It is considered one of the oldest indices in Asia. The stock index includes 225 stocks of companies trading directly in the Japanese market. The most famous of them are Sony Corporation, Canon Inc, Nissan Motor Company, and Honda Motor Company.

Curiously enough, the index was named after an economic newspaper that used to calculate the instrument. It was first published as long ago as 1950 and was calculated as the arithmetical mean of the companies’ securities. A company’s weight in the index is calculated based not on the general market capitalization but directly on the stock price. The set of companies in the index is revised every September; in October, changes are accepted.

By the way, RoboForex has just made Nikkei 225 available for trading. Moreover, the company has made trading various indices easier and more attractive by decreasing the minimal lot and step. Average spreads remain among the smallest; for example, an average spread for the De30Cash index is just 0.5 euro per contract.

Tech analysis of Nikkei 225

Nikkei 225 differs from other stock indices, such as NASDAQ, Dow Jones, or S&P 500. If other indices are capable of mighty bullish trades and quick restoration after falls, Nikkei 225 had stuck in a wide flat since the beginning of 2017. Only this year, the quotations have dropped below the lower border of the range, almost reaching the level of 2016.

However, the price returned into the channel quite soon, and the quotations are now getting ready for testing an important resistance level at 24200; a breakaway of this level will mean a perspective of further growth.

As for an important support level, it is at 20000. As you may see, upon testing this level upwards, the price tested the support level three times and demonstrated a good bounce upwards.

On the whole, the instrument is quite technical: many levels and patterns work off quite well. Even now, we can single out an inverted Head and Shoulders pattern forming. Inside the pattern, we may expect a decline and test of 20005, where the right shoulder of the pattern will be complete.

Tech analysis of Nikkei 225​

As a rule, most traders who use graphic patterns for trading, buy at the right shoulder. The general goal of the growth is 30985. The growth will not happen if 16255 is broken away – this will cancel the pattern and potentially indicate a further decline.

A simple strategy for trading Nikkei 225

Not all traders enjoy using classical tech analysis for trading because it requires constant thinking and drawing different levels and patterns. A significant disadvantage of the analysis is it being subjective: some will think a pattern not regular enough, others will see a Triangle instead of, say, a reversal pattern. Let us have a look at a trading strategy for trading Nikkei 225 that is not subjective.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear Traders!

As always, this week the ContestFX project continues its competitions, such as:

The recently started 113th competition of "Demo Forex" and 270th competition of "Week with CFD".
At 12:00, August 5th, 2020, starts the 403rd competition of Trade Day".
At 20:00, August 6th, 2020, starts the 320th competition of KingSize MT5".
All our participants get complete access to any of the competitions they like right after passing a simple registration procedure. If they win, they will receive prize money to their real trading accounts and use it in trading operations on the Forex market without investing their own funds in the initial deposit.

Join and win!

Sincerely,
RoboForex Contest

 

[Vlad RF]

False Signals in Forex: How to Detect and Avoid Them?

Author: Maks Artemov

Dear Traders,​

Having opened a position, many traders ponder at the question: “Why did it close with a loss if I seemed to do everything right? Almost all signals by the strategy were there but in the end, the price went in the opposite direction”. The keyword in the question is “almost”. Sometimes the market makes movements that you cannot forecast or calculate, in which case indicators turn out virtually useless. What was the point? What went wrong? The answer is simple: the trading strategy gave a false signal, and the trade turned out losing.

Let us try to make it clear why such things happen and why false signals appear.

Why do false signals emerge?

The news

News is, perhaps, the most frequent reason for false signals. As you know, the market accounts for everything, and before some news is officially published, the quotations react and start moving in a certain direction. Normally, if some preliminary results turn out better than expected (such as the GDP reports), the quotations will grow. However, practice shows that the quotations start growing before the publication of the news itself, and at the renewal of the data, the market makes an abrupt reversal and starts a steep decline.

At this moment, Stop Losses trigger at the positions opened beforehand, and impatient market participants worsen the situation, craving for a swift and large profit. Several minutes after the publication of the news, the market calms down, and the price starts going in the correct direction.

False signals - The news​

Errors in the calculations of indicators

Another reason for the appearance of false signals is errors in the indicator calculations. Many traders tend to forget that after abrupt market movements the data they receive is heavily distorted, and their indicators make mistakes. Impatient traders decide that this is an entry signal and get a losing position.

False signals - Indicator errors​

False breakaways of levels

In tech analysis, the most widespread false signals are false breakaways of levels. There are two options of trading support and resistance levels: to trade bounces off them or their breakaways. Here is where market players get mistaken.

Let us imagine trading bounces off the resistance level. The price reached the level, and the trade decided to open a selling trade. They placed the SL behind the level (in a safe zone) but the price broke the level away and close the trade by the SL.

What do impatient traders do in such cases?

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

Cryptocurrency Prospects in the Second Half of the Year: No Hope for Miracles

Author: Anna Rostova

Dear Traders,​

The first half of this abnormal year 2020 was hard for the crypto market as well. The coronavirus itself can do nothing to digital money because they do not exist in reality but emotions influence crypto trading no less than the fiat market. In January-June this year, the sum withdrawn from the crypto market amounted to almost 2 billion USD – this is almost 200% more than during the same period last year. As we see, cryptocurrency prospects to become a safe-haven asset have failed but what if they have other advantages?

The stock market slump in March that happened due to the global quarantine did not bring the digital quotations down. After the BTC and altcoin rates fell to the low, buyers returned to the crypto market. Now the latter is aiming at long-term goals because it is clear that world economies will not restore at a split second – this means that we need to look for opportunities to make money or at least stay afloat in some other universe. In the second half of the year, we see some prospects for cryptocurrencies as the market may offer something.

ETH: the 2.0 version must be a bomb

For the last several months, the crypto world has been waiting for an important event for the cryptocurrency market prospects, which is the launch of the 2.0 version of the Ethereum network by the Ethereum Foundation. This is the most important and promising foothold for the ETH that it has not yet fully used. The company remains silent about the date of full-scale tests but promises the start just one of these days. Today, the developers suggest that the users should find weak spots in a very limited version of the network – hack the blockchain, damage blocks, etc., i.e. find as many vulnerable spots as possible. For finding them, the company offers a reward of 5000 USD.

This means that testing is on but not on a full scale. Hence, the Ethereum 2.0 is still under development.

The test version of the network may easily be launched this summer, and if the expectations are met the future of the Ethereum will be bright.

The point is expectations. Ethereum 2.0 is expected to solve the scalability problem. Why is it important? Solving the problem will decrease the calculation chain by several links and thus speeds up the process. The speed of calculations has always the key to victory. The quicker one wins the race. Currently, the average speed of the Ethereum network is 15 transactions a second but if the scalability problem is solved, it may reach 1000 transactions a second. None of the large crypto companies has solved it yet but Ethereum has promised an optimal solution many times.

BTC: needs China to be ok

The probability of a new wave of the coronavirus does not scare crypto investors as much as possible consequences. Long-term investors are focusing their attention on Asia, and the reason is simple: China concentrates a large number of mining farms and plants producing equipment for mining. The share of Chinese miners in miners’ community is still very large. Risk of a new virus – or a new version of an old one – may lead to the closing of mining farms in China. The good news is that such enterprises work quite autonomously, which means they need really grave reasons to close, and there is no such news now.

Apart from bright speculative factors that are mostly theoretical, the market has no other reasons for the BTC to grow.

Every other day we hear the news about either hacking wallets or huge transactions. Nonetheless, this is not what could push the leading cryptocurrency in this or that direction.

What could become a catalyst to drive cryptocurrency prospects? Say, the decision of the SEC about the status of the cryptocurrency – whether it is a currency or an asset. Then the main US banks would include the BTC in the list of currencies available for transactions. As you know, the closer digital money is to real life, the better because more potential users will have access to cryptocurrencies.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team