RoboForex - roboforex.com

[Vlad RF]

How to Set Up Charts on MetaTrader 4

Author: Victor Gryazin

Dear Clients and Partners,​

This article is devoted to working with charts on a popular platform MetaTrader 4. Charts help to track and analyze quotes movements of financial instruments, as well as to forecast their future behaviour.

How to open chart window

A new chart on MetaTrader 4 can be created several ways:

• Click File – New Chart, and then choose a financial instrument.
• In the Market Watch window, choose a financial instrument, left-click and drag it to the work area of the terminal.
• Right-click a ticker in Market Watch, and then click Chart Window.
• Click Window – New Window – an instrument from the list.

Adding indicators to the chart

To add indicators to the chart click Insert – Indicators and choose the one you need. Alternatively, click an active button with a green cross in the upper menu.

MT 4 features many popular indicators of the following groups:

• Trend
• Oscillators
• Volumes
• Bill Williams
• Custom (indicators added by the user).

How to save chart template and profile

After editing is complete, you can save your settings as a template. Saved settings will then be applied to newly opened charts.

To save your settings, right-click the chart and choose Template – Save Template – enter name. The template can than be uploaded to the chart the same way: right-click – Template – Load Template – choose the one you need.

You can create different templates with various settings: chart design, indicators, and instruments. The whole set of open charts with their properties and templates is saved to a different profile.

To save the profile, click File – Profiles – Save As – enter name. Alternatively, click a button with the name of the active profile at the bottom of the terminal and choose the one you need from the unfolding list.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

4 Stocks for Trading in Uncertainty

Author: Eugene Savitsky

Dear Clients and Partners,​

Inflation, recession, stagnation, stagflation — and other scary words that investors keep hearing in the stock market. What else? Toughening of credit and monetary policy, cutting down on the CB balance, winding up the QE programme. With such news, it becomes hard to consider buying any stocks.

When stock indices drop abruptly

Normally, the stock market experiences panic and falling of indices right in the times when no one suspects any trouble. Investors are simply buying stocks and watching their profits grow.

Negative news does not always provoke immediate reaction: understanding the scale of a future disaster needs time. However, more experienced investors assess the situation fast and start acting at once.

As a result, the quotes in the stock market start going down and speeding up because other investors have no more time to think. Hence, stock indices drop when investors take their profit, not trying to make money on the decline.

What the market sentiment is now

The poll carried out in March by Investors Intelligence demonstrates that the number of those planning to buy shares had dropped to 30%, while the number of those who want to play short had grown to 34.5%. In other words, the current market is bearish.

Over the last 12 years, this has happened 6 times, and the quotes of S&P 500 always reached some lows from where it then started to grow. Market players either opt for cash or for short positions — and this is what stimulates growth of stock prices.

There is some saved cash that can support the stock market and increase the demand for shares. And there are sellers who will have to close their positions if the prices grow, which will also lead to an increase in quotes.

Union Pacific

The shares of Union Pacific Corporation (NYSE: UNP) are trading in an uptrend. and at the first glance, there are no hints on a decline. However, upon a more thorough investigation, it can be noticed that volatility of the shares has increased. Quite often, this means the trend is coming to an end.

Upon sky-rocketing to 280 USD, the quotes quite soon returned to 240 USD and have already broken through it. This is the key level for the bulls because they have been holding it since December 2021.

The bears had made 12 attempts to break through it but always failed – until this time. Now we should expect further falling of the quotes to the support level of 220 USD. The bears are also supported by the bad news around and high market volatility.

Closing thoughts

When fundamental analysis is no help to make investment decisions, tech analysis will save us. It shows a fight between bulls and bears, and a moment will come when we will understand who will win.

In such cases, a trader should stand on the stronger side and trade in this direction. When fundamental and tech analyses agree, the probability of making a profit increases. Note that today, the stock market sentiment is negative.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

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

The 134th competition of "Demo Forex" has gained "cruising speed".
The 361st competition of "Week with CFD" has just started.
495th competition of "Trade Day" will start on 18.05.2022 at 12:00.
409th competition of "KingSize MT5" will start on 19.05.2022 at 20:00.

Registration on our website does not take much time, and after completing it, you will get access to any of the upcoming competitions in just a couple of mouse clicks.

Join us!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Trade by Cup and Handle Pattern

Author: Victor Gryazin

Dear Clients and Partners,​

This article is devoted to the Cup and Handle graphic pattern, providing the main information, such as how it forms and how to trade it.

What one should now about Cup and Handle

Cup and Handle is a tech analysis pattern that forecasts the continuation of the current trend after the price stops consolidating.

The pattern was discovered and popularised by a famous trader and investor, author of several books on the stock market and the founder of a business newspaper Investors Business Daily William O’Neil.

Cup and Handle forms in an uptrend or downtrend; it is a correctional price movement that consists of two parts. The first part is the Cup and the biggest part of the correction, and the second part – the Handle – is the smaller finishing part.

The pattern can be bullish or bearish. The first one is the actual Cup and Handle that appears on the chart in an uptrend and signals about further growth of the quotes.

The bearish pattern is called Inverted Cup and Handle; it appears on the hart in a downtrend and signals about the continuation of the latter.

How does bullish Cup and Handle form

1. After a downward correction starts on the chart, a price range forms that looks like a bowl or a rounded bottom. Ideally, the Cup has two same highs on both sides but this is a rare occasion.
2. After the second high of the Cup forms, the price pulls back, forming the second correctional phase that resembles a Handle. This will be a minor decline (from 1/3 to ½ of the Cup) before a subsequent breakaway.
3. An entry point for a buy appears when the Handle is complete and the quotes break the resistance level away upwards. It goes through the second high and links the Cup to the Handle.
4. The first rough goal for the pattern after the breakaway will be the height of the Cup. Losses should be limited if the price drops below the low of the Handle.

How to use Cup and Handle for trading

William O’Neil who discovered the pattern used it for trading stocks and preferred longer timeframes. He stated that the pattern on D1 should take 7 to 8 weeks to form.

However, this pattern is rather universal and can be used on various TFs with currency pairs, stock indices, oil, gold, and other liquid assets.

There are several factors potentially supporting the pattern:

• both highs or lows of the Cup are on more or less the same level;
• the Handle is no higher than the ½ of the Cup;
• the breakaway of the resistance/support level increases the volumes.

Example of buying by Cup and Handle

1. On D1 of Brent oil, in an uptrend, a Cup and Handle pattern formed.
2. After the resistance level drawn through the second high of the pattern (point 2) is broken away, the trader can buy.
3. A Stop Loss is placed behind the low of the Handle.
4. Profit can be taken when the quotes rise for the height (H) of the Cup.

Bottom line

The Cup and Handle pattern became popular thanks to a famous trader and investor William O’Neil. This tech analysis pattern of trend continuation is quite a rare occasion on charts.

Cup and Handle can be used for trading stocks and other liquid assets. Before using the pattern for real, practicing on a demo account is recommended.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Trade by EMA + Awesome Oscillator Strategy

Author: Andrey Goilov

Dear Clients and Partners,​

The medium-term trading tactics that unites a trend indicator EMA and Awesome Oscillator is a setup for working by the trend.

The authors decided against complicated solutions and supplied the advantages of a Moving Average, a most efficient instrument for determining the market trend, by the potential of an indicator confirming market entries – Awesome Oscillator.

It seems that a combination of a popular instrument and oscillator will always be the best solution for trading the trend.

The strategy is meant for H1 and larger timeframes. This means the trader can work both intraday, letting the price reach its goal within a couple of hours, and leave trades for the next day.

The article describes the right way to combine signals from the EMA and AO on H1 and how to place the Stop Loss and Take Profit.

How to set up indicators

The authors of the tactics never specified which instruments are to be used for work, yet we are convinced that traders should use currency majors and any other assets that demonstrate good lengthy trends with deep corrections.

To go by the strategy, we need an Exponential Moving Average with period 200 and an Awesome Oscillator with standard parameters. These indicators can be easily found on any trading platform and added to the chart. In MetaTrader 4, the algorithm is as follows:

• Insert – Indicators – Trend – Moving Average
• Insert – Indicators – Bill Williams – Awesome Oscillator

How to use EMA

• When the price is above the line, this indicates an uptrend, so look for signals to buy.
• When the price drops under the EMA (200), this means a downtrend, so look for signals to sell.
• For H1 and larger TFs, parameters will be the same.

Closing thoughts

The strategy using EMA and Awesome Oscillator is a very simple option of trading the trend that also has quite simple rules.

To enter the market, the trader only needs to check signals from two indicators. The advantages of the strategy feature a small Stop Loss and availability of necessary indicators on most popular trading platforms.

The drawbacks of the platform include no chance of entering the market by the trend for the second time, because the signal forms only when the price breaks through the EMA line. While the price remains above this line, it gives no entry signal, and the instrument keeps going by the trend, so the trader loses a part of this movement.

Moreover, the authors leave the profit size to the trader’s discretion, giving just the minimum that equals the SL. Working by the strategy, the trader will understand that, firstly, a bar of the opposite colour on the Awesome Oscillator histogram is a good exit option, and secondly, the Asian trading session is not the best time for opening trades.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, the ContestFX project brings to your attention the following competitions on demo accounts:

The 134th competition of "Demo Forex" is approaching the final stage.
The 362nd competition of "Week with CFD" has just started.
496th competition of "Trade Day" will start on 25.05.2022 at 12:00.
410th competition of "KingSize MT5" will start on 26.05.2022 at 20:00.

We remind you that all winners of our competitions receive prize funds to their real accounts and they can use them to perform trading operations in the Forex market without investing their own financial savings.

Good luck to all traders!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex: upcoming changes to the trading schedule in view of the Whit Monday and holidays in the US and the UK

Dear Clients and Partners,​

We are informing you that changes will be made to the trading schedule due to the Memorial Day celebration in the US, the Late May Spring Bank Holiday in the UK and the Whit Monday in several European countries.

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

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on Metals (XAUUSD and XAGUSD), US indices (US30Cash, US500Cash, and USTECHCash), the Japanese index J225Cash, and CFDs on oil (Brent and WTI)

• 30 May 2022 – trading stops at 7:40 PM server time.
• 31 May 2022 – trading starts as usual.

Schedule for trading on CFDs on US stocks

• 30 May 2022 – no trading.
• 31 May 2022 – trading starts as usual.

R StocksTrader platform

Schedule for trading on US stocks and ETFs

• 30 May 2022 – no trading.
• 31 May 2022 – trading starts as usual.

Schedule for trading on CFDs on US stocks and ETFs

• 30 May 2022 – no trading.
• 31 May 2022 – trading starts as usual.

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

• 30 May 2022 – no trading.
• 31 May 2022 – trading starts as usual.

Schedule for trading on CFDs on the UK stocks and UK100 index

• 2 June 2022 – no trading.
• 3 June 2022 – no trading.
• 4 June 2022 – trading starts as usual.

Trading schedule on CFDs on German, Austrian, Danish, and Norwegian stocks

• 6 June 2022 – no trading.
• 7 June 2022 - trading starts as usual.

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

• 30 May 2022 – trading stops at 7:40 PM server time.
• 31 May 2022 – trading starts as usual.

cTrader platform

Schedule for trading on Metals (XAUUSD and XAGUSD)

• 30 May 2022 – trading stops at 7:40 PM server time.
• 31 May 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, as usual, is waiting for everyone in the following competitions:

The 134th competition of "Demo Forex" is approaching its end.
The 363rd competition of "Week with CFD" has started today.
497th competition of "Trade Day" will start on 01.06.2022 at 12:00.
411th competition of "KingSize MT5" will start on 02.06.2022 at 20:00.

To take part in our demo contests, just go through a simple registration procedure only once and then the participation in the competitions you chose will be available in just a couple of mouse clicks.

We're looking forward to your joining in and wish you good luck!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How to Avoid Traps for Bulls and Bears

Author: Victor Gryazin

Dear Clients and Partners,​

You must have heard about traps for bulls and bears appearing on charts. This article tries to get into more detail of the issue, telling you how to detect places of such traps and how to avoid them.

What are traps for bulls/bears

A bullish/bearish trap is a chart situation when the quotes pretend to break through an important price level and then reverse sharply and go in the opposite direction. As such an important level, we can see support/resistance levels, trend lines, or graphic patterns. Bullish/bearish traps are frequent in financial markets.

The idea is that traders open their positions by formed price signals by the current price movement. However, for various reasons, the opposite side turns out much stronger and suddenly reverses the price in the opposite direction.

This makes traders panic and close initial positions, which only enhances the opposite movement. In other words, bulls or bears get trapped and close their positions at a sudden price reversal, thus supporting the movement in the opposite direction.

How to detect traps for bulls

Most often, bullish traps rest near important resistance levels that have already been tested by the price. The price seems to break through such a level upwards, and bulls open long positions, expecting the price to keep growing. However, it reverses and goes down.

The sign that the trap has been triggered is the return of the price to the area below the broken resistance level. Bulls are playing long and have to make decisions about closing their trades.

Reversing the quotes down, bears have proved their power and readiness to fight back. Bulls start closing their buying trades, Stop Losses get triggered, so the downward momentum gets stronger, and the trap locks.

Another place where a trap can form on the chart is a strong resistance line. The situation is similar to the one above: the resistance line is broken through upwards, bulls hurry to open buying trades, but all of a sudden, the quotes reverse downwards, and the price drops below the line. Then the decline may continue.

How to detect bearish traps

A trader can get into a bearish trap when they open a selling position at a breakaway of a strong support level. Inspired bears open short positions, counting upon further decline, but the quotes suddenly reverse and start going up.

Bears have open short positions that they need to close. As a rule, they do so if the price secures again above the support level, broken previously. Then bearish Stop Losses get triggered. As a result, the quotes get supported in their growth, and the trap locks.

Bottom line

Bearish and bullish traps are quite frequent on ptice charts. As a rule, they appear near important support/resistance levels or lines.

It is almost impossible to avoid traps altogether, but knowing their peculiarities, one can minimise chances of getting trapped and decrease possible losses.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

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

The 135th competition of "Demo Forex" and 364th competition of "Week with CFD" have just kicked off.
At 12:00, 8 June 2022, starts the 498th competition of "Trade Day".
At 20:00, 9 June 2022, starts the 412th competition of "KingSize MT5".

All winners of our demo account contests are rewarded with prize money to their real accounts, and they can use them to perform trading operations on the Forex market without investing their own financial savings.

Join us!

Sincerely,
RoboForex Contest