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[Vlad RF]

Trading with Ichimoku and Awesome Oscillator

Author: Andrey Goilov

Dear Clients and Partners,​

Almost any trading strategy suggests using several indicators for finding market entry signals. In most cases, if a trend indicator is used, we supplement it with an oscillator to confirm the first signal and show the direction of the general trend.

Our strategy uses the Ichimoku and Awesome Oscillator indicators. Ichimoku Kinko Hyo is an excellent trend indicator that perfectly shows the current market trend. Awesome Oscillator demonstrates the deviation of the price from the average value. It is quite similar to the MACD indicator that demonstrates the divergence of the price chart and the indicator chart.

The strategy will give signals at trend reversals. According to authors and traders, such signals can be found on any currency pairs, which means the strategy suits both majors and less popular pairs. For market entry, we use H1, but longer timeframes are also worth trying.

Setting up the strategy Ichimoku + Awesome

As I said above, the strategy requires the use of two indicators only, which makes it suitable even for traders with minimum expertise. So, we need to add two indicators with standard parameters to the chart:

Ichimoku Kinko Hyo. As we have figured out, it shows the actual market trend. Normally, if the prices rest above the Ichimoku Cloud, the trend is bullish (ascending). Conversely, if the price has broken the Cloud away and turned out under it, the trend on the chart is descending. Also, the price may trade inside the Cloud, in which situation, traders speak of a flat and wait for the price to escape the Cloud to catch the beginning of a new wave.

Awesome Oscillator — is an indicator that gives good signals in a flat. A strong signal is a divergence of the p[rice and indicator charts in the direction of the main trend. The color of the histogram and its position in relation to zero will also be important.

How to open a buying trade?

To open a buying position, the following is important:

The closing price of the candlestick broke through the Senkou Span A line from below, which means the candlestick closed above the upper border of the Ichimoku Cloud.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How To Become a Successful Trader: 10 Clues

Author: Victor Gryazin

Dear Clients and Partners,​

Who is a “successful trader”? They are a trader who has learned to make a stable profit in financial markets. In this article, we will give 10 clues that will help beginners to become and feel like that successful trader. Let us get started.

Decide if trading suits you

First and foremost, you need to make sure that the job of a trader is good for you.

Trading is high-risk speculations in financial markets. According to statistics, only 10% of those who have started trading make any serious success.

A trader spends a lot of time analyzing news and charts, looking for trading opportunities, following trades. Analytical mind and tranquility, as well as the ability to take possible losses calmly, are essential here.

For example, if you are choleric with a bursting temper and a love for traveling, you will have a lot of trouble sitting monotonously at the PC all day and analyzing charts. Hence, make your own list of criteria for your perfect job and check if trading meets your requirements.

Start from your trading education

As with any job, in trading, you have to start with thorough learning. Make sure your learning stuff is of high quality because the Internet is full of questionable content.

To learn independently, you may use educational videos or courses by experts from reliable brokers or investment companies, books by famous and successful traders, recommendations of professional traders you know personally.

To my mind, the fastest and most efficient way to learn to trade is to seek the assistance of an experienced working trader who makes real money. They can show you how to use the rules and techniques of a reliable trading strategy they use. You just need to make sure that your teacher does really trade well and not just sell courses. Check that your trader uploads trades online, or provides public monitoring of their trading account, or frequently shows good results in traders’ competitions.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

A possible surge in volatility due to the presidential elections in the USA

Dear Clients and Partners,​

We’re informing you that due to the upcoming presidential elections in the USA on November 3rd, financial markets are likely to be subject to a significant surge in volatility and a drop in liquidity during the next week, which may lead to a significant widening of spreads by our liquidity providers.

During this period, the margin requirements (leverage) for open and new positions for all types of accounts will remain unchanged. Please, take into account this information when planning your trading activity and modify your open positions in advance.

We’d like to remind you that in the interest of protecting clients’ funds, RoboForex has the Negative Balance Protection program, whereby the company brings the balance back to 0 should it become negative during the trading process.

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This November week, the ContestFx project continues with the following contests on demo-accounts:

The 116th competition of "Demo Forex" and the 283rd competition of "Week with CFD" have just kicked off.
At 12:00, November 4th, 2020, starts the 416th competition of "Trade Day".
At 20:00, November 5th, 2020, starts the 333rd competition of "KingSize MT5".

Let us remind you that to participate in any of the contests of your choice it's enough for you to go through a simple registration process just once. After that, you can join any desired competition in just a couple of mouse clicks.

We're waiting for everyone to register and good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Invest in S&P 500?

Author: Maks Artemov

Dear Clients and Partners,​

In this article, we will discuss trading S&P 500. In the exchange, this index is trading under the ticker US500; today, it can be found in many popular trading terminals.

What is S&P500?

S&P 500 was created by Standard and Poor’s (currently S&P Global) on March 4th, 1957.

Earlier, another index called Dow Jones Industrial Average Index used to be popular. It included the 30 largest industrial companies. Also, other indices were there; however, they covered only a small group of companies, hence, did not represent the whole picture of market moods.Standard and Poor’s went their own way and decided to create an index that would show the market situation on the whole and not just the state of things in the industrial sector. This is how the S&P 500 appeared.

The new index was comprised of 500 large companies with the biggest capitalization from various sectors. However, the number of companies and the exact contents of the index remains prone to change.

What are the companies in the S&P 500?

The index includes the 500 largest companies traded in the US stock market. To be listed in the index, a company must comply with the following requirements:

• capitalization no less than 6 billion USD.
• registered in the USA.
• stock liquidity (the number of stocks traded) no less than 250,000 per month.
• no less than 50% of the stocks available for free trade.
• profitability during the four last months of the accounting period.

The list of companies is revised every quarter. If a company turns out to be faulty in a way, it is replaced by another suitable company. Usually, the list loses companies that start generating losses in the accounting period or the liquidity of which drops.

The leaders of the index are currently the giants of the IT and banking sectors, such as:

• Apple Inc (NASDAQ: AAPL).
• Microsoft Corporation (NASDAQ: MSFT).
• Amazon.com Inc (NASDAQ: AMZN).
• Facebook Inc (NASDAQ: FB).
• JPMorgan Chase & Co (NYSE: JPM).

IT companies take over 27% of the index, healthcare companies – 14%; the shares of the remaining spheres are not that significant, though they comprise more than 50% of the index, taken together.

S&P 500 is calculated based on weighted capitalization, which means companies that have larger capitalization have more influence.

How to invest in the S&P 500?

S&P 500 is good for not only intraday trading but medium-term investments as well. Thanks to many market players being interested, the index demonstrates high volatility and liquidity during the trading session. Also, you can go on trading after the trading session ends, though liquidity will shrink.

The only limitation for future investors is the high price of the index, which entails the use of leverage or the increase of the deposit.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Keep a Trading Diary? Practical Tips

Author: Victor Gryazin

Dear Clients and Partners,​

What for do we keep a trading diary?

The Internet is full of books and articles on trading but not all of them will be useful. The most popular ones tell a trader what they want to hear instead of describing the true market reality. Books on trading often focus on appealing setups, leaving behind possible mistakes in the fulfilment, search, and realization of trading ideas.

That is why I recommend all traders, especially beginners, to start a trading diary as early as possible. It will become your best book on trading. It will reflect the market as you see it and keep track of all your actions and their results.

Even experienced traders often keep trading diaries diligently because they know that it is one of the most useful and working instruments: it helps you see your possible inefficacy right at the start and correct it timely.

A trading diary helps to not only prepare trades well but also analyze the results of trading. In losing periods, you can scrutinize the diary and detect the reasons for your drawdowns. Among such reasons, you can see emotions that make you violate your trading rules or errors of your trading system that need correction.

The process of keeping a trading diary consists of three parts:

• A description of your trading plan.
• Statistics.
• An introspection log.

Part 1: Description of your trading plan

Your trading plan must describe your detailed trading plan, your analysis; it helps you write down on paper (or in a file) your ideas of the market and your own trading. On the whole, the analysis of and your opinion on the market as they are do not make your trading successful; however, your current opinions define your area for finding ideas.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project brings the following exciting competitions to your attention:

The 116th competition of "Demo Forex" started last Monday.
The 284th competition of "Week with CFD" has started recently.
The 417th competition of "Trade Day" will start on 11.11.2020 at 12:00.
The 334th competition of "KingSize MT5" will start on 12.11.2020 at 20:00.

Our winners receive rewards to their real trading accounts and they can use them to earn on the Forex market without investing their financial resources as the required starting money.

Become one of them - Join us!

Sincerely,
RoboForex Contest

 

[Vlad RF]

Ho to Trade Bryce Gilmore’s Graphic Patterns

Author: Andrey Goilov

Dear Clients and Partners,​

Nowadays, there are plenty of various graphic patterns for trading. Some are classical, some are modernized. Every trader tries to supplement graphic patterns with their own secret features to make them more efficient.

For example, previously, investors used to trade the Head and Shoulders pattern at the breakaway of the “neck” only; however, these days, many traders do not wait for the pattern to be complete but trade while it is still forming. Thus, they can enter the market with a much shorter Stop Loss.

Bryce Gilmore is one of the traders who added their rules to and found interesting mechanisms in the work of classic trading patterns. Many patterns from his books coincide with the views of other graphic traders.

On the one hand, there is nothing complicated to his novelties; on the other hand, one has to spend a lot of time to come to such conclusions on their own. However, with all the books and articles, a beginner only needs to read and reread them thoroughly and apply the knowledge to the current market.

All Bryce Gilmore’s patterns can be conditionally divided into two groups (like all other graphic patterns): those of trend continuation and those of trend reversal. In this article, we will discuss the main price structures only. The author has plenty of patterns in store but you do not need to know all of them to trade successfully: you can choose a couple and learn how to use them properly in compliance with your capital management rules.

Trend reversal patterns

The Head and Shoulders pattern

Bryce Gilmore insists on calling this pattern like this, and we cannot deny that it is very similar to the classical pattern.

However, here, there is a large difference between the classical and original approaches. In normal tech analysis, few traders speak about selling from exactly the right “shoulder” of the pattern. As for Gilmore, he notes that if the “shoulders” are more or less equal, we can open a selling or buying position depending on where the pattern is aimed.

Moreover, he neglects the slope of the “neck” completely: even if the line is heading down, we can still open a buying position provided that the “shoulders” are equal.

I will remind you that in classical tech analysis, the “neck” must be aimed in the direction of the previous trend. If otherwise, the pattern is not a Head and Shoulders but a Wolfe’s Wave. Some time ago, my colleagues and I singled out this feature and were quite surprised to find a similar idea in the book of another author.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Analyze Financial Reports of Companies by IFRS?

Author: Vadim Kovalenko

Dear Clients and Partners,​

In this article, we will discuss a step-by-step algorithm for analyzing the reports of international public companies so that later, you will analyze them yourself. During the report period, a normal person is overwhelmed by recommendations and advice. However, to form a correct and independent opinion, you have to work with the primary source.

Where to start from?

Start the analysis from the website of the company: you will find the reports in the section for investors. See an example in the screenshot below:

Then a section will open, from where you will be able to download all the reports of the company. Here, we see yearly (10-K form) and quarterly (10-Q form) reports. We are more interested in the 10-K. An example below:

If you are not keen on looking for all those sections on the company’s website, just go to the website of the SEC regulator - and download the documents from there. In the search form, enter the ticker of the company:

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This new week, the ContestFX project will as usual offer you the following competitions:

The 116th competition of "Demo Forex" has gained "Cruise Speed".
The 285th competition of "Week with CFD" has just kicked off.
At 12:00, November 18th, 2020, starts the 418th competition of "Trade Day".
At 20:00, November 19th, 2020, starts the 335th competition of "KingSize MT5".

To participate in any desired competition, it's enough to go through a simple registration process just once. Using the prize money received as a reward, you can start the full-fledged trading on the Forex market without investing your financial resources required as the starting money.

Good luck!

Sincerely,
RoboForex Contest