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[RoboForex Contest]

Dear traders!

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

The 144th competition of "Demo Forex" has gained "full speed".
The 405th competition of "Week with CFD" has just started.
The 539th competition of "Trade Day" will start on 22.03.2023 at 12:00.
The 453rd competition of "KingSize MT5" will start on 23.03.2023 at 20:00.

It does not take much effort and time to participate in our competitions - all you need to do is to go through a simple registration procedure, after which you'll get access to any of the contests you like 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 Trade the "Moving Averages Based on Fibonacci Numbers" strategy

Author : Victor Gryazin

Dear Clients and Partners,​

In this article, we will look at a medium-term indicator trading strategy using multiple moving averages based on Fibonacci numbers. We will find out which indicators to set and talk about the rules for making trades.

How the strategy works

Fibonacci numbers originated with the famous Italian mathematician Leonardo of Pisa, who was better known as Fibonacci. He investigated an infinite mathematical sequence that was later named after him. In it, each successive number is equal to the sum of the previous two numbers: 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, and so on.

Dividing the previous number in the sequence by the next number gives 0.618. Dividing the previous number in the sequence by the next number through one produces 0.382. The golden ratio is based on this relationship. With the advent of exchange trading, the Fibonacci sequence began to be used in trading. Various tools based on Fibonacci numbers can be found in almost any trading platform.

This strategy uses the intersection of four exponential moving averages (EMAs) with periods corresponding to the Fibonacci numbers (5, 8, 13, 21) to find trading signals. Moving averages have long established themselves as a simple and effective tool for trend analysis.

When all four moving averages are moving horizontally and intertwined, this is a sign that the market is in a sideways corridor and there is no clear trend. When the price is rising and indicator lines begin to diverge and move upwards, this signals the beginning of an uptrend. When the price decreases and the indicators diverge moving downwards, it indicates the beginning of a downtrend.

How to install the Moving Average indicator

The Moving Average indicator is included in most modern trading terminals, displayed directly on the price chart. In the popular MetaTrader 4 and MetaTrader 5 trading platforms, you can install the Moving Average on the chart of the selected instrument through the Main Menu: Insert → Indicators → Trends → Moving Average.

In the window that appears, select period 5, colour and thickness of the line, and method MA: Exponential. Repeat these steps to set up three more moving averages with periods of 8, 13, and 21, selecting different colours for the indicator lines. This will result in four differently coloured moving averages on the price chart, which will be used to search for trading signals according to the strategy.

How to use the strategy in trading

This strategy is quite versatile and can be used on different timeframes and financial instruments. To trade, you have to wait for the price to move up or down out of the sideways range. In a sideways range, all four moving averages are intertwined and move horizontally – there are no trading signals.

A buy signal for the strategy

• The price begins to rise, crossing all four moving averages from bottom to top, renewing the nearest local high
• The moving average lines cross and begin moving upwards, gradually diverging from each other
• A buy position is opened, and the Stop Loss is set at the nearest local low, which is below the moving averages
• Take Profit is taken when the moving averages are crossed in the opposite direction, or when the price reverses and closes below all four moving averages

Advantages and disadvantages of the strategy

Advantages:

• The strategy works well in trends, allowing you to profit from strong and sustained movements
• The potential profit can be several times greater than the potential loss

Disadvantages:

• As this strategy gives unprofitable signals during a flat period, it is better not to use it in a flat period
• Moving signals can be slightly delayed, so a significant amount of profit can be lost on sharp market reversals

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex adds the Performance Fee scheme for CopyFX to the R StocksTrader app

Dear Clients and Partners,​

Here we come with a long-awaited CopyFX update on R StocksTrader: RoboForex added a new possibility for the CopyFX Traders to earn commission from their subscribers - the Performance fee.

The Performance Fee

is a commission scheme in CopyFX which allows Traders to get the share of the total amount of profit made by their subscribed Investors, so the more your subscribers earn from their copied deals - the more commission you get.

This scheme mostly suits experienced and confident Traders who demonstrate a stable performance in the medium and long run.

More about Performance Fee​

Why do Traders choose CopyFX in R StocksTrader?

Minimal investments
Minimal deposit of 100 USD.

High order execution speed at the same price
Instant copying of transactions with the same execution price for the Trader and the Investor guaranteed.

Comfortable app
Trade in R StocksTrader any time from any place and make a profit on commissions.

1,500+ instruments for copying
Take advantage of this unique opportunity and offer Investors more than 1,500 instruments to copy.

Copy trading is proven popular among our clients and partners. We are, therefore, constantly developing our products, enhancing them, and introducing new functions to both the desktop and mobile versions of the platform. Stay tuned for the next update!

Become a CopyFX trader in R StocksTrader now
and embrace all the benefits!

Learn more about copy trading​

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

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

The 144th competition of "Demo Forex" has reached the final stage.
The 406th competition of "Week with CFD" has just kicked off.
The 540th competition of "Trade Day" 29.03.2023 at 12:00 will start on 30.03.2023.
The 454th competition of "KingSize MT5" will start on 30.03.2023 at 20:00.

Let us remind you that all winners of our contests receive prize funds to their real accounts, which they can use to earn more in the Forex market without investing their own savings as the starting deposit.

Join us!

Sincerely,
RoboForex Contest

 

[Vlad RF]

How To Trade the On Neck Candlestick Pattern

Author : Victor Gryazin

Dear Clients and Partners,​

In this review, we will get acquainted with the trend continuation candlestick pattern called "On Neck”. We will look at the features of its formation and the trading rules for its application. We will learn its main advantages and disadvantages, and also list a few important recommendations for its use.

How the On Neck pattern is formed

The "On Neck" candlestick pattern is a pattern that indicates a further continuation of the current trend. It is rarely seen on price charts. It consists of two candlesticks: the first has a large body pointing in the direction of the current trend, and the second has a small body. They are always of different colours: if the first candlestick is white, the second is black, and vice versa.

The feature of this model is that the second candlestick opens with a gap in the direction of the trend and then closes the gap with its body. The closing prices of the two candlesticks should be about the same. The first candlestick symbolises the "body", the second one is the "head", and the line connecting them and passing through the closing prices is the "neck", hence the name of the pattern.

The appearance of a small black candlestick after a large white candlestick in an uptrend indicates that the "bulls" have met temporary resistance, and when overcoming it, will be able to continue to move upwards. The appearance of a small white candlestick after a large black one in a downtrend indicates temporary support, through which the "bears" are likely to continue the downward movement.

Bullish "On neck" pattern

This is formed during an uptrend when there is an active upward price movement. The first candlestick of the pattern (large white) appears first, and then the second candlestick opens with a gap upwards. The "bears", trying to seize the initiative, return the quotations to the closing price of the first candlestick. The second candlestick (small black) absorbs the gap with its body, with the closing prices of the two candlesticks approximately coinciding.

A bullish continuation of the "On neck" pattern is formed on the chart. We must now wait for confirmation that the "bulls" are still strong enough to overcome the temporary resistance of the "bears". A further rise in quotations above the high of the pattern’s second candlestick will confirm this. This upward movement will mean that the buyers are still very strong, and the uptrend is likely to continue.

How to buy using the bullish on neck pattern

• During an uptrend, a bullish "On Neck" pattern is formed on the price chart
• It is recommended to open a buy position when the price rises above the maximum of the second candlestick in the pattern (small black candlestick). Stop Loss is set at the low of the first candlestick (large white)
• To set Take Profit, you can focus on significant support and resistance levels

How to sell using the bearish on neck pattern

• During a downtrend, a bearish "On Neck" pattern is formed on the price chart
• It is recommended to open a sell position after the price decreases below the low of the second candlestick in the pattern (small white). Stop Loss is set at the high of the first candlestick (big black candlestick)
• To set Take Profit, you can focus on significant support and resistance levels

Recommendations for the use of the pattern in trading

• The pattern should be formed in a pronounced upward or downward trend – it is not traded in a sideways trend
• Wait for a confirmation – an update of the pattern’s high/low – before opening a trade
• To increase efficiency, the model can be used in conjunction with technical analysis tools
• It is best to use higher time frames, from H4 and above
• It is necessary to follow the rules of risk management and place protective stop-loss orders

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

False Breakouts on Financial Markets: How to Detect and Use?

Author : Andrey Goilov

Dear Clients and Partners,​

Hi everyone, today I'm going to talk about false breakouts. In certain cases, it might be unclear to the trader whether there has happened a breakout of the resistance level and, hence, the bullish trend will continue. Such a breakout might be false so that the price will reverse quite soon and go in the opposite direction. In certain cases, such formations may provoke a full-scale reversal of the trend.

As a rule, such things happen at the moment of testing the support/resistance levels. This situation is similar to a reversal. However, it might be a test of a normal trendline, as well as the completion of such patterns of tech analysis as the Triangle or Head and Shoulders, when the price escapes the pattern and the falseness of such a breakout becomes questionable.

This type of breakouts pertains to chart analysis. If we are evaluating the chart without indicators, our evaluation will always be subjective to some extent. It is should be kept in mind that this is an integral part of chart analysis.

What is a false breakout?

In most cases, a false breakout is the "tail" of a Japanese candlestick, which means that the price tried to break the support level away but the sellers were not strong enough to secure themselves under this level. Then the price bounces and moves upwards. This might signify the strength of the buyers and forecast further growth.

Types of false breakouts

Larry Williams was one of the first experts to describe false breakouts. He singled out such a type as Specialists Trap. If the market is bullish, the pattern is formed at the breakout of the resistance level closing much higher than the resistance area. The minimum of the candlestick preceding the one with the breakout acts as a sort of a critical level here.

In the case of falling and breaking this level away, we should expect a market reversal and overall falling. Larry Williams thinks that here we can see the false breakout form when traders enter the market emotionally.

How to detect a false breakout?

Tech analysts give different hints on false breakouts of levels or trendlines. For example, a true breakout requires closing above the resistance level. If the close prices return under the level the breakout may be false, so no growth us to be expected here.

Also, there is a rule of 3% applicable to important levels and lines. It says that the prices must rise above the level by more than 3%.

Imagine we are watching good growth of the gold prices. The important support area is at the level of 1455. If this level is broken away we might speak about a potential reversal to a downtrend.

If we apply the rule of 3% here the price must fall below 1411 for the breakout to be true. A decline to 1450 and a return indicates a false breakout, after which the growth is likely to continue.

However, this rule is just an instrument that helps distinguish between true and false breakouts. Other traders add time filters or follow-up tests of the broken levels to avoid false breakouts.

How to use false breakouts?

Larry Williams points at the fact that it is impossible to know beforehand whether the level will be broken out or not. What is more, he insists on using our own methods of analysis to use false breakouts effectively. As we may see, when the market is growing and a reversal Double Top may form, it is likely that the breakout of the resistance level will be followed by a further decline of the price. So, if it looks like the pattern will form, no growth should be expected.

Conversely, if the market is falling and its structure reminds of a Double Bottom, one should not hurry to sell after a breakout. If the prices have managed to return inside the pattern soon after the breakout, a market reversal is likely to happen, so that the pattern will be executed.

Very often traders use the MACD indicator that shows divergences on the chart well. If at the moment of a breakout of an important level there forms a convergence or a divergence on the chart, the breakout is likely to be false and the market should be entered in the opposite direction.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex Contest]

Dear traders!

This week, a RoboForex project called ContestFX will continue with the following exciting competitions:

The 145th competition of "Demo Forex" and the 407th competition of "Week with CFD" have just started.
The 541st competition of "Trade Day" will start on 05.04.2023 at 12:00.
The 455th competition of "KingSize MT5" will start on 06.04.2023 at 20:00.

It does not take much effort to participate in our contests: all you need to do is to register an account, and then any of the competitions you like will be available to you 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 Trade the “S&P 500 Trend Following Strategy”

Author : Victor Gryazin

Dear Clients and Partners,​

In this article, we will look at the long-term indicator trading "S&P 500 Trend Following" strategy. We will find out how it works, how it is used in trading, and what indicator signals it is based on. We will also list its advantages and disadvantages.

How the S&P 500 Trend Following strategy works

This long-term strategy implies trading the S&P 500 (US 500) stock index in the direction of the current market trend. Note that this index is probably the best-known and most popular stock index in the world. It includes the stocks of the 500 largest companies traded on the US stock market and serves as a barometer of the state of the US stock market.

Renowned investors and asset managers Meb Faber and Paul Tudor Jones are the creators and popularisers of the S&P 500 Trend Following strategy. They presented a rather simple and at the same time effective trend-following trading system for the S&P 500 Index, which is based on the signals of the 200-day moving average.

The S&P 500 often shows a steady uptrend during periods of a rising stock market. The indicator should help to identify the beginning of the next long-term trend and give investors a signal to buy to profit from the index growth.

To describe the strategy simply: when the S&P 500 is above the 200-day moving average, the trend is upward, and it is a good time to buy the index; when it is below the indicator line, the trend changes, moving downward, and all positions must be closed.

How to install the Moving Average indicator

The Moving Average (MA) has long established itself as a simple and effective tool for trend analysis. The indicator is included in most modern trading terminals where it is displayed directly on the price chart.

To set the Moving Average in the popular MetaTrader 4 and MetaTrader 5 trading platforms, follow these steps:

1. Open the terminal and log in to your account.
2. Select the S&P 500 from the list of available financial instruments and add it to the chart.
3. From the main menu, click on Insert, then on Indicators, then on Trend, and select Moving Average.
4. Select the period 200, the line colour and width, and the MA: Simple, and click OK to apply the settings and close the indicator settings window.

As a result, a 200-day moving average will appear on the price chart, which will be used to identify the current trend and search for trading signals according to the strategy.

How to use the strategy in trading

The S&P 500 trend-following strategy trades in one direction only – to buy the asset. Its trading principle is simple:

• When the closing price of the index crosses the 200-day Moving Average from bottom to top, this indicates the beginning of an upward trend and gives a signal to buy
• When the closing price of the index crosses the 200-day moving average from top to bottom, this signals the end of the uptrend and the need to close buy positions

Advantages and disadvantages of the strategy

Advantages:

• The strategy works well during a sustained uptrend, allowing you to profit on strong and prolonged movements of the S&P 500 index
• The potential profit can be many times greater than the potential loss

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:

The 145th competition of "Demo Forex" is gaining momentum.
The 408th competition of "Week with CFD" has just started.
The 542nd competition of "Trade Day" will start on 12.04.2023 at 12:00.
The 456th competition of "KingSize MT5" will start on 13.04.2023 at 20:00.

We'd like to remind you that winners of our contests receive prize funds to their real trading accounts, and they can use them to start trading in the Forex market instead of investing their own savings.

Good luck to all traders!

Sincerely,
RoboForex Contest

 

[Vlad RF]

RoboForex has increased partner commission for Gold, Silver, Oil, and US indices

Dear Clients and Partners,​

The RoboForex Partner Programme has become even better! We increased the partner commission for trading Gold, Silver, Oil, and US indices. As a RoboForex Partner you can now earn at least two times more when your clients trade these popular instruments.

Example of partner commission rate for Pro accounts:

Calculate your increased commission

Join one of the best markets' Partner Programme

• High commission
  Earn up to 70% of the broker’s revenue, and additionally up to 20% within the framework of the loyalty programme.
  
  
• Special Affiliate accounts
  Get maximum payouts with the help of client accounts with increased spreads and commissions for a transaction.
  
  
• Multilevel programmes
  Create your own partner network in one of two schemes: 2 levels "VIP" programme, or 5 levels "Expert".
  
  
• Copy-trading
  Attract clients to the CopyFX copy-trading system and receive commission like a Partner. And if you're an experienced trader, you can get two types of commission: one from investors copying your strategies, and the Partner commission.

How to become a Partner

1. Open a Partner account
2. Use promotional materials to attract clients
3. Receive your commission for your referrals' transactions

Sincerely,
RoboForex team