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When to buy Bitcoin. A few tips

Bitcoin/EUR, cryptocurrency, Bitcoin/USD, cryptocurrency, When to buy Bitcoin. A few tips

How to choose the best time to buy bitcoin in 2021 and get the maximum profit – and is it worth waiting for such a moment at all

Content

  • "Boring" Bitcoin
  • Become a Hodler
  • A long-term investment
  • Average the cost

If you decide to invest in bitcoin, then you probably have a question when it is better to do it. How to catch the moment when it will be most profitable to buy bitcoin?

After the value of BTC reached a record $63 thousand in April, the value of the cryptocurrency quickly fell and for several weeks bitcoin kept in the range of $30-$33 thousand, sometimes falling even below $30 thousand.

How to choose the moment to buy when the price of BTC is so volatile? In this article, we will look at possible options and tell you what experts say about buying BTC.

"Boring" Bitcoin

Many professionals are sure that bitcoin should be bought when it becomes "boring", that is, at times when its rate is kept more or less at the same level, without sharp jumps.

So, for example, says the author of the DataTrek investment newsletter, Nicholas Kolas. Having calculated the average change in the price of bitcoin over 100 days, Kolas came to the conclusion that the maximum profit can be obtained if you buy BTC when it is the least volatile.

Kolas notes that in the last few months, the volatility of bitcoin exceeds 3%, which means that now is not the best time to buy cryptocurrency.

Read more: Volatility: types, how to track and how to use

The words of Kolas are well illustrated by the chart of Jeremy Schneider, the founder of the online educational platform Personal Finance Club.

Schneider found a correlation between the increase in the number of "Buy Bitcoin" requests in search engines and the increase in the value of the cryptocurrency. According to the graph, for example, it is clearly visible that at the end of 2017, the number of requests began to grow, and soon the cost of bitcoin reached the $20 thousand mark for the first time. Then the interest in BTC gradually subsided and the currency exchange rate went down again, that is, bitcoin again became "boring", which means it became profitable to buy it again.

Become a hodler

The problem is that it is almost impossible to find the perfect moment. For example, BTC has lost 40% of its value – should the investor immediately buy it or is it better to wait for more.

The company The Motley Fool, which is engaged in financial consulting, does not advise buying cryptocurrency at all if you just want to make a quick profit. Experts warn that in this case, buying bitcoin is simply risky.

"If you believe that the cryptocurrency has a bright future and it will change the world, then it really doesn't matter how much you buy bitcoin for – $60 thousand or $30 thousand. If BTC is ever worth $500 thousand, you will still get a serious profit, " advises The Motley Fool. The key word here is "someday". If you believe in the potential of cryptocurrency, then become a hodler and be ready to wait for years for this potential to be realized.

Long-term investment

The analyst also agrees with this Currency.com Mikhail Karkhalev. In his opinion, if you are planning a long-term investment in cryptocurrency, then there is no fundamental difference whether you bought BTC for $38 thousand or $40 thousand, because in the future you probably expect a profit of 200% -300%.

If you are making a short-term investment, then the difference of $2 thousand can be serious. "However, in this case, the risks are higher and the uncertainty with the entry point is higher," Karhalev warns.

"If we turn to technical analysis, the nearest support zone for bitcoin is $36 thousand, the nearest resistance is $42 thousand. Accordingly, the entry points for long or short positions can be searched in these ranges, " the expert advises.

Experts interviewed by Forbes said that bitcoin is a good investment for those who are ready to wait, back in February, when the BTC exchange rate rose to $57 thousand. For example, Rustam Botashev, an analyst at HASH CIB cryptoinvestbank, noted that "for those who consider cryptocurrency as a long-term investment, and not a short-term speculation, everything will turn out well."

"Bitcoin will grow, so it's not too late to buy it for the purpose of medium-and long-term investments," said Vladimir Smetannik, CEO of the Newcent financial company.

Average the cost

Another tip for those who want to invest in bitcoin, but are not ready to lose a large amount, is the cost averaging strategy. This means that you do not look at the current BTC exchange rate at all, but buy a cryptocurrency for a certain amount in a pre-set time interval.

For example, once a month you buy BTC for $1000, regardless of whether the bitcoin exchange rate is growing or falling. Then in a good month you will get more BTC, and in a bad month – less, but over a long distance you will average the amount of investments.

It is worth noting that this strategy works if you want to invest a serious amount of money in cryptocurrency and again, if you consider BTC as a long-term investment.


 

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Who are ECN Forex brokers. Their advantages and disadvantages
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May 18, 2022
IndexaCo
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Practical advices on choosing a Forex broker for a beginner
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According to the standard, a trader needs to invite new users to the company using an individual referral link. For each of the attracted traders (they are also called referrals), the trader receives a financial reward.Despite the fact that bonus programs allow you to earn additional income, you should not consider them the easiest way to earn money. None of the bonus programs will give you experience in Forex trading, and you should use them only to get additional funds to your account.Read more: Copy trading or auto trading on ForexLearning the basics of the Forex marketThe best broker for a beginner is the one that provides opportunities for learning. It is as simple as possible to check this criterion - just look at the main page of the company. Useful information is usually found in a separate section called "Training" or "Education".The list of information that will be useful to novice traders includes:glossary/dictionary of terms;training videos on working with the trading platform;articles and videos on the topic of trading different instruments, their differences and features;materials about the psychology of trading;free webinars from leading experts;educational courses;trading guides;a library with books, news and other resources about Forex trading.Often, the FAQ section, which contains answers to frequently asked questions from traders, is no less useful for beginners. But this information is more often related to the trading conditions and services of a particular broker, and there are no trading tips in this section.Read more: Stock market Broker: how to choose it and how to work with itSupport serviceCommunication with the support service is another criterion underestimated by beginners. Trading conditions are undoubtedly important, but practice shows that at the stage of acquaintance with the Forex market, beginners have a lot of questions, which the customer support service helps to solve. The trader's comfort largely depends on the speed of its operation and the availability of convenient communication methods.A call is one of the fastest ways to communicate, but when calling, it is worth considering whether the broker offers a toll-free number for communication.It is worth sending a letter to email if the question is thorough (for example, related to finances) and not urgent since the answer to the email can come both within 15 minutes and within a day.Online chat is the fastest and most convenient way to solve any issue. The average response time in an online chat is no more than 10 minutes.The feedback form, as well as an email, takes time and is not suitable for solving urgent issues.The callback function allows you not to spend money to call the company. Instead, the trader needs to leave a request, and the support service will contact the client itself.In addition to the speed of response, it is also worth paying attention to the professionalism and level of service of the broker's employees. This factor makes it possible to distinguish a reliable company from scammers, since proven brokers offer assistance in solving any questions, and the answers of the support service are correct and aimed at solving the problem. While short and not informative answers often indicate that the broker is not interested in a long-term cooperation.Read more: Forex broker: how to choose a good brokerExpert opinion: what else to pay attention to when choosing the first brokerOf course, reviews play an important role in choosing a company: the more positive reviews about a broker, the higher the probability that he can be trusted. At the same time, companies with a small audience should be avoided if possible.Before opening an account with any broker, it is also important to carefully read the user agreement: it specifies how the broker solves disputes with clients. It is important to know this so that, if necessary, the trader can protect his rights.Pay attention to the broker's website: the more specific information is indicated there, the more reliable the company is. The lack of important information is the first alarm call that it is better to bypass this broker.
May 18, 2022
IndexaCo
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NZD/CHF: characteristics, features, signals, analysis & trading forecasts
NZD/CHF, currency, NZD/CHF: characteristics, features, signals, analysis & trading forecasts The New Zealand Dollar against the Swiss Franc (NZD/CHF) is a rather exotic and volatile cross–pair, as contradictory as the economies of the countries participating in it. Currencies are perfectly combined, complement and compensate each other: the franc gives the pair stability, predictability and pliability to any type of analysis (both technical and fundamental work well), while the New Zealand adds volatility.In the NZD/CHF cross-pair, New Zealand dollars are bought for Swiss francs, so the NZ dollar acts as the main currency here, and the franc is the quoted one. Despite the absence of the US dollar, it still implicitly participates in the auction, since the conversion of one currency into another does not go directly, but through it. The course is displayed as standard up to 4 characters after the separator (0.7048) or as in some individual terminals up to 5 (0.70456), taking into account the tick chart.Opening the long-term chart, you can see that in general, the price moves up and down with some frequency and a large amplitude in the range from about 0.58 to 1.05. The currency pair is flat most of the time and only occasionally there are strong bursts of activity up or down, as a result of which the price quickly passes hundreds of points, and then, as a rule, also quickly returns back. This pair is not characterized by long trends that continue for many years in one direction.The overall volatility of the pair varies greatly from time to time, in some periods it becomes very active and overcomes 200-300 pips per day, in others it fluctuates very slightly, falling short of a hundred. The analysis shows that Wednesday is the most volatile day for the NZDCHF, although Thursday is also not far behind, but Monday is the calmest.If we look at the intraday dynamics by the clock, it will be from 23:00 to 01:00 GMT in the Pacific session and at its overlap with the start of trading in Tokyo, Hong Kong and Singapore, as well as from 09:00 to 11:00 GMT in the European session, and especially from 13:00 to 17:00 GMT at the overlap with the American.Read more: CAD/CHF: description, characteristics, trading forecasts and feautures of the pairNZDCHF online forecast for todayThe NZD CHF forecast is based on technical analysis indicators. The strongest signal will be at a time when the forecast with the prefix ACTIVE will be repeated on all timeframes.Despite the fact that this is a cross-pair, the presence of a "Swiss" makes it quite predictable, stable and well amenable to fundamental analysis, which greatly facilitates the preparation of a forecast. The dynamics of the pair is well predicted on both medium-term and short-term charts, despite the fact that during the trading day it may change direction 2 or even 3 times.Low liquidity forces brokers to set decent spreads on this financial instrument (about 6-10 points), which, coupled with not too high volatility, makes scalping on this pair unprofitable and difficult. It is much more profitable to keep positions open for several days or even weeks, which, with a passing trend movement, allows you to earn more on swaps.Due to the fact that the pair is not widespread, it will not be easy to find ready-made analytics, but it is possible, for example, in thematic sections on trading forums. However, the undoubted advantage of this pair is its relative predictability and the ability even for an inexperienced trader, after a little research of the available data and the most important factors, to make his own forecast accurately enough.What does the NZDCHF rate depend on?New Zealand is a small island nation to the southeast of Australia, living by exporting services, oil, agricultural products and international tourism. The structure of the country 's economy today looks like this:About 71% of GDP is accounted for by trade and services (banking, educational, consulting, restaurant, etc.);The mining and manufacturing industry accounts for approximately 24.3% of GDP;Agriculture provides 4.7% of income.Read more: EUR/CHF: exchange rate, online quotes, signals and forecast for todaySwitzerland is a relatively small neutral state in western Europe. Located in a mountainous area, it is surrounded on all sides by the European Union, but, nevertheless, it is not part of it itself. The country is divided into administrative units – cantons (20) and semi-cantons (6), and has several official languages at once (French, German, Italian, Retro-Romansh).By sector, the Swiss economy looks like this:Services account for about 73.4% of the country's GDP;Highly developed industry gives 25.9%;Agriculture accounts for only 0.7% of GDP.International investments play a crucial role for the Swiss economy, and tourism plays an important role.Of the factors most affecting the dynamics of the New Zealand dollar against the Swiss Franc, it is necessary to highlight:the world price of gold;oil prices;trade balance of New Zealand (and to a lesser extent Switzerland);economic indicators of both countries, as well as the European Union, the USA and Australia;the volume of investments in the Swiss economy;Central Bank rates;change in the inflation rate;prices for agricultural products;weather and climatic conditions in the area of New Zealand (to a lesser extent, but also relevant for Switzerland).Read more: GBP/CHF: online signals, forecasts for today, analysis & featuresFor today, the D1 timeframe for this pair has the following correlation with other Forex instruments: NZD/USD – 93.4%, AUD/USD – 81.3%, AUD/SGD – 79.9%, NZD/CAD – 77%, Platinum – 72.6%, GBP/USD - 70.4%, CN50 and HK50 indices – 70.4% and 70% respectively, Gold – 67.8%.NZD/CHF has the strongest inverse correlation with: Euro/New Zealand Dollar – -96.3%, USD/NOK – -83.4%, USD/JPY – -80.1%, dollar index – -78.4%, USD/CHF – -76.3%, USD/PLN – -75.3%, USD/THB – -74.9%, USD/CAD – -74.4%, EUR/NOK – -73.4% and Pound/New Zealand – -73%.Features of the currency pairDespite the fact that the stability of the Swiss economy has significantly shaken in recent years, the franc still remains one of the most stable currencies in the world, and its presence in the pair makes it much easier to predict the exchange rate and fundamental analysis, since all the emphasis can be shifted to the study of factors affecting another currency.Circumstances allow carry-trading on this currency pair because the difference between the refinancing rates of the participating countries is quite large (1.75% for New Zealand and -0.75% for Switzerland). Today, the swap sizes are equal to: -0.77 for short and +0.35 for long positions. The values are not large at all, but nevertheless allow you to receive a small additional income under certain circumstances.Due to the fact that this New Zealand/Swiss pair often falls into a flat for a long time between important events, one of the best trading strategies that work on it and bring up to 40% profit from the deposit size per month is the eponymous TS Breakdown of the flat. For professionals working on long-term timeframes (D1 and more), Price Action indicator-free trading and its various varieties have proven themselves well.Since, as noted above, in the long term, the price moves up and down, almost always returning, potentially the most profitable, but at the same time the riskiest strategy will be martingale trading.
May 15, 2022
IndexaCo
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CAD/JPY: features, characteristics, signals, analytics & trading forecasts
CAD/JPY, currency, CAD/JPY: features, characteristics, signals, analytics & trading forecasts The Canadian dollar to Japanese yen cross-pair is not one of the most popular tools among forex traders, however, due to some of its advantages, it has a certain number of fans who earn good money on it.The CAD/JPY currency pair allows you to get a good profit due to high volatility and strong trends that can last for a long time, as on other pairs with the yen (especially cross-pairs).The average volatility of the CADJPY chart makes it possible to get decent earnings without big risks in medium- and long-term trading. The exchange rate chart shows fairly long trends, which makes working with the currency pair quite predictable and stable.General characteristicsThe CAD/JPY quote is a cross rate. In this pair, the dollar is the base currency, the dynamics of the currency pair directly depends on its exchange rate. The yen, as a quoted currency, affects the currency pair in the opposite direction, the growth of the Japanese monetary unit leads to a decrease in the value of the quotes of the currency pair.Since the Canadian dollar is purchased for yen, quotes for CAD JPY are displayed with an accuracy of two decimal places (for example – 86.55).The CAD/JPY currency pair is the most active in the Asian and American trading sessions, due to the region of the countries to which these currencies belong. Fans of long-term sessions are advised to analyze the situation during the European session (the first half of the day) in order not to be distracted by short-term dynamics.Read more: USD/JPY: chart, forecast for today, currency pair overviewWhat does the CAD JPY rate depend on?It is known that the Japanese economy, firstly, is highly dependent on raw material prices, and secondly, is largely export-oriented. Therefore, the Japanese authorities strictly monitor the exchange rate of the national currency, and even in the recent past, the famous currency interventions of the Bank of Japan took place.The Canadian economy is also largely export-oriented, where the main trading partner is the United States, but imports from Asian countries also take place, so Canada does not seek such a significant weakening of the national currency as Japan.Both economies depend on the situation on the raw materials market, but Canada not only imports it for the needs of industry, but also exports it (timber, wheat, oil). The land of the rising sun has very limited reserves of its own raw materials, which in no way can cover the needs of a developed industry, therefore it is forced to buy it in large quantities.The influence of fundamental factors on this pair is very large, but it is better not to rely heavily on technical analysis (especially in the long term). Today, economic news has a big impact on the pair, especially related to trade balances, oil prices and changes in Central Bank interest rates (first of all, Canada, since the Central Bank of Japan has been holding a low interest rate up to negative for a very long time).At the same time, there is an economic recovery, both in Japan and in Canada, and the importance of US policy may be exaggerated. Analytics and CAD forecast: The total volume of exports in Canada rose by 4%, and the country's exports excluding the United States soared by 9.5% (a record for 5 years). Imports increased by only 0.7%.In Japan, total exports grew by 5.4% (and in China by a record 12.5%), the trade surplus for the first time in 15 months has been maintained for 4 months in a row.The Canadian dollar is highly dependent on the US dollar. Two huge countries are trading partners, the collapse of the economy of one of them will certainly pull down the second. When analyzing the Canadian dollar, it is necessary to take into account the American economy.Canada ranks 5th in the world in terms of popularity among tourists, so the tourist business significantly affects the local dollar exchange rate. Moreover, tourism in Canada is year-round, so it should always be taken into account. With a competent approach, you can make decent money on this. If the well-being of the citizens of the world's leading powers improves, then they have more opportunities to go on vacation to Canada, and the currency of this country is strengthening. Conversely, international crises and unrest worsen the quality of life of potential tourists, there are fewer guests in the country we are interested in, the CAD is weakening.Read more: CAD/CHF: description, characteristics, trading forecasts and feautures of the pairFactors influencing CADJPY quotesThe economic state of Canada is directly related to oil prices, since "black gold" is the country's main export. The indicator of the national currency reacts sharply to the dynamics of the cost of raw materials.Situation analysis also requires taking into account the weather conditions in the countries. Various elements negatively affect both currencies for completely different reasons. In Canada, the weather rarely deteriorates, infrastructure collapses even less often because of it, but any negatives cause an outflow of tourists, and hence income to the budget. In Japan, the elements are raging more often, have serious consequences and can scare away large investors who want to contribute to the country's economy.Almost all major brokers host calendars of important financial events and news that will be a good help in trading and forecasting for this currency instrument.How to trade CADJPYExperienced traders have long established that this pair is largely correlated with the oil price chart (in some years more, in others less) and in some cases, the Brent oil futures chart can act for lovers of medium and long-term trading as a good pointer to the future vector of the pair's movement (previously it correlated with CAD/JPY by more than 87%).There is a significant correlation between EUR/JPY and CAD/JPY, which often exceeds 90%.Since Forex trading takes place around the clock from Monday to the end of Friday, and a high spread will not allow scalping, there is not much point in talking about the dynamics of the exchange rate and the level of volatility in the context of specific trading sessions within the day, but if someone is still interested, then the main trades for this pair are conducted in the American session and to a lesser extent degrees in European (London) and Asian (after the opening of the Tokyo Stock Exchange).Fans of "trading for a breakdown" can enter the market at the opening of the American session at 12:00 GMT or at its overlap with the European one.Read more: GBP/CHF: online signals, forecasts for today, analysis & featuresDistinctive features of a currency pairCAD forecasts The CAD/JPY pair has several important features that every trader who wants to start trading it should definitely know.A significant spread caused, as in other cross-pairs, by double conversion (Canadian dollars are changed to American dollars, and only then yen is bought for USD).The second feature follows from the first and lies in the fact that due to the large spread, CAD/JPY trading is poorly suited for scalping and other short-term strategies. The "piper" is unlikely to be able to recoup his trade at all, even despite the high volatility.It is obvious that the pair is complex, requires cash, experience and patience, and for those who want to make quick money on opening short-term deals, there are other more suitable tools, for example, the same USD/JPY, which does not have such a significant spread.CADThe Canadian dollar, also referred to as the Loonie or Little Dollar, is the seventh currency in terms of trade in the world. The issuer is the Bank of Canada. It is a "commodity" currency unit, since the economy is dependent on exports of timber, energy and oil. The Loonie is strongly influenced by the neighboring country of the United States and its economic component.JPYThe Japanese yen is the third largest trading currency in the world. Its issuer is the Bank of Japan. The "safe haven" currency got its nickname due to the low level of inflation, plus relatively high economic stability. Low interest rates make it possible to maintain a low value in relation to other currencies. The monetary unit is often used in trading operations, especially in Asia. The government's support of a low exchange rate is a historical tradition that creates favorable conditions for exporters and contributes to economic growth.
May 15, 2022
IndexaCo
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GBP/AUD: features, characteristics, signals, analysis & trading forecasts
GBP/AUD, currency, GBP/AUD: features, characteristics, signals, analysis & trading forecasts The GBP/AUD currency pair is characterized by volatility of decent strength with a sharp appearance of candlesticks with a length of 50-100 points, which is typical for most pairs with the pound.Like most other cross-pairs, this one also behaves quite unpredictably, and it is not known which is easier: to make a forecast yourself or try to find analytics on the network. Let's figure out these difficult questions and find the answers.General characteristicsThe British pound sterling - Australian dollar is a currency pair that is not very common among most Forex traders. A significant spread in this, as in most other cross pairs, makes it little suitable for scalping, however, due to rapid and sharp price movements in both directions in a short period of time, intraday short-term profitable trading strategies are quite acceptable.GBP/AUD quotes are displayed in the MetaTrader 4 terminal with an accuracy of up to 4 digits (in MT5 - up to five). The main currency is the pound sterling, while the Australian dollar is convertible, that is, the purchase of British pounds for Australian dollars is carried out. Since this is a cross rate, the calculations are carried out through the US dollar, for example, when buying AUD, pounds are sold for dollars, and Australian currency is bought with dollars.Read more: GBP/CHF: online signals, forecasts for today, analysis & featuresTrading forecast and analysisIt is obvious that the GBPAUD currency pair is contradictory and difficult to analyze, especially at the present time. On the one hand, the UK is leaving the EU, the future of which is currently very vague, and there is a possibility of losing Scotland along the way. On the other hand, the country–continent of Australia, whose economy has ups and downs, is highly dependent on natural materials and weather.Exports of food, energy, raw materials and minerals bring a significant part of Australia's income, this plays a significant role in the country's economy (where the services sector is dominant, providing jobs for up to 70% of the working-age population), and AUD is considered a commodity currency.According to experts, up to half of Australian exports are the sale of minerals (metals, oil, gas), but in general, resource extraction brings no more than 7-8% of GDP. Australia's main trading partner is China, whose economic slowdown does not bode well for Australian exporters of energy and raw materials.As in Australia, the UK economy is dominated by the services sector, which provides almost 30% of GDP, primarily financial, brokerage and banking services, famous offshore companies in British overseas territories, insurance and consulting services. The main trading partners of the United Kingdom are the EU (Germany, France, the Netherlands) and the USA.Known since the XVIII century for its power, the English industry eventually faded into the background in importance for the country's economy, but it is still very strong and gives almost 20% of gross income. An important role for the UK is played by oil and gas production focused on the North Sea shelf, but ironically, if a second referendum on Scotland's secession is successful, England risks losing all its northern deposits geographically related to Scotland, which categorically does not want to leave the EU.Despite the fact that Australia has been an English colony for a long time, due to time and local specifics, over the years of independence, the difference in economies has become significant, and the speed of reaction of national currencies to changes in the United States and the world is also very different.Read more: GBP/USD exchange rate (Online Chart), forecast for todayA significant difference in the interest rates of the banks of England and Australia (0.25% and 1.5%) allows you to use this currency pair to earn money according to the carry trade strategy (long-term purchase of a currency with a high refinancing rate for a currency with a low interest rate, in this case, buying AUD for pounds in order to sell after some retention, earning on profit from interest). However, such an approach can be dangerous in crises, as the case of the Japanese yen in 2008-09 has already shown.Of great importance for the Australian dollar is the price of gold, with which the AUD/USD chart is significantly correlated, as well as oil, gas and agricultural products.The GBPAUD pair itself correlates most of all with: AUD/USD -90.8%, AUD/CAD -87.7%, Gold -82.3% (inverse correlation); EUR/AUD 89.7%, EUR/NOK 82%, USD/CAD 76.2% (direct correlation). However, the accuracy of the above percentages is not constant and may change from time to time, both up and down, which must be taken into account in your calculations.Despite the fact that the US dollar does not participate directly in trading here, here, as in other cross-pairs, AUD is converted to USD, USD to GBP, so the US currency still has a significant impact. If you combine the AUD/USD and GBP/USD charts, the resulting value will be very close to what can be seen on GBP/AUD.To make money trading on GBPAUD, it is necessary to take into account the high spreads of the cross pair, which is why it will be profitable to trade in the medium and long term. The currency pair shows good long trends, so it is loved by positional traders.If you want to make money on short–term trading, it is best to use fixed Forex contracts, since they are devoid of spreads, and the profit on transactions is fixed. To make a profit, you need to specify whether the rate will rise or fall at a certain point in time, for example, after 10 minutes.Features of the currency pairGBPAUD does not lend itself well to technical analysis and sometimes behaves contrary to the probable expectations formed by the indicators. It should also be taken into account that the presence of a pound in a pair brings such an unpleasant feature to her behavior as a weak reaction to some, at first glance, important news or even almost complete absence of it.Read more: EUR/AUD: exchange rate, online quotes, signals, forecasts & analyticsDue to the high spread (reaching 10 or more points for some brokers) and a serious level of risk, this pair (as well as most other crosses) is suitable for trading exclusively for experienced traders who already know how to clearly catch trends and correctly track the dynamics of GBP/AUD.Options remain a universal and easier way to trade on this pair, an example of which we showed you a little above.No one forbids trading GBP/AUD and inexperienced Forex traders, but those who want to try their hand at such a difficult element will have to take into account that there is very little really valuable information and good analytics on such an exotic pair on the Internet today, and they will need to rely on their own strength.
May 15, 2022
IndexaCo
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CAD/CHF: description, characteristics, trading forecasts and feautures of the pair
CAD/CHF, currency, CAD/CHF: description, characteristics, trading forecasts and feautures of the pair Currency pairs with the Swiss franc are traditionally characterized by a calm rhythm of trading, practically without sharp fluctuations, and CAD/CHF is no exception in this regard.Also, this cross-pair is characterized by the presence of trends of average time duration with sluggish development.Features of the currency pairIn the hands of an experienced trader, the CAD/CHF currency pair is able to constantly bring, albeit small, but stable income.CAD/CHF forecast for technical analysisOnline forecast for today according to technical analysis. The strongest forecast is always with the prefix Active (buy or sell).The forecast for the "Loonie" against the Swiss Franc is based on both fundamental and technical indicators. The forecast analysis of the instrument is carried out fairly accurately and predictably using indicators, support/resistance levels and other standard technical means. The pair is well predicted to cross the SMA lines by the price.Before entering into a CAD/CHF transaction, it is advisable to review fresh analytics, otherwise even such a calm pair can bring a noticeable loss to the deposit of an unwary trader.The Canadian dollar/Swiss Franc is a very calm pair. This is confirmed by its chart itself, looking at which, it can be seen that the pair is one of the "quietest" in terms of volatility, even in comparison with other instruments in which CHF is present. During the trading day, it usually does not pass even 70 points. On the hourly chart, it usually does not go beyond 20 pips.During the week, the greatest activity on this instrument is observed on Thursday, the least – on Monday. According to intraday sessions, the most active trading occurs during the European (from 07:00 to 16:00 UTC) and American (from 13:30 to 20:00 UTC). As with most other instruments, the peak of trading of the Canadian dollar – Swiss Franc pair falls at the intersection of the European and American sessions at 13:30-16:00 UTC.Read more: GBP/CHF: online signals, forecasts for today, analysis & featuresGeneral characteristicsThe base currency is CAD, and the quoted currency is CHF, that is, Canadian dollars are bought for Swiss Francs. It was already noted above that this is a cross (since the US dollar does not participate in the pair), however, the calculation still always goes through USD. Francs are converted into US dollars, and those, in turn, into Canadian dollars.Due to low liquidity, brokers usually set a significant spread on CAD/CHF, which, coupled with low activity, makes it even less popular among traders, but long-term investors in the foreign exchange market use it to diversify their risks on other assets.The CAD CHF quote is displayed, as for most other currency pairs, in four-digit form (0.7643) and traditionally in five-digit form on the MT5 terminal.What does the CADCHF course depend on?CHF It would seem that the combination of currencies of countries with such different economies in one pair would create a real explosive mixture of instability and contradictions, but no, with CAD/CHF everything turns out rather the opposite.The Canadian economy, which mainly receives income from the export of goods and raw materials, largely depends on such indicators as: energy prices, wood, wheat. An important role for Canada is played by trade with the United States, which is the main trade and economic partner. Tourism also occupies not the last place in the country of the "maple leaf", and a significant influx or outflow of the number of people wishing to visit it can have a significant impact. Agriculture accounts for only 2-3%.Probably everyone has heard about the famous reliable Swiss banks, however, despite the power of this industry, in reality the banking services sector occupies only about 10% of the state's GDP. More than 60% of income is accounted for by other services, such as: hotel and restaurant business, insurance, educational services, etc. The most important industry and source of income of the "country of banks" today is its highly developed industry, which brings about 30% of GDP. Switzerland is famous not only for the production of cheeses and chocolate products, but, first of all, for the production of sophisticated equipment, luxury watches, expensive medicines and high-precision optics. Agriculture, as in the Canadian economy, brings only a couple percent of GDP.Read more: EUR/CAD: signals, forecasts, exchange rate chart (online) and quotesAUD/CAD exchange rate and forecast online, currency pair overviewDespite the fact that today the global share of investments in the Swiss franc does not exceed 0.3%, it is the world's reserve currency and a haven for investors in times of crisis. For the Swiss economy itself, international investments are of the utmost importance, and when making a quotation forecast, it is necessary to take this into account.The Bank of Canada, when analyzing the pair, should pay the most attention to the dynamics of the price of gold (although the franc has not been tied to it for a long time), oil, trade balances of both countries and changes in interest rates of the Central Bank. Although there is no direct involvement of the US dollar here, as in the case of other crosses, it also has a major impact on both currencies, as well as the economic performance of America as a whole, because it is also the main trading partner for Canada and not the last for Switzerland. However, Switzerland's main partnerships are still with the EU.A high degree of similarity is observed between the short-term, hourly and 4-hour CADCHF and USD/CHF charts, but on longer-term timeframes the discrepancies are increasing. To a large extent, there is an inverse correlation of the Canadian dollar/Swiss Franc with EUR/CAD (up to -89.9%) and a direct correlation with CAD/JPY – about 74.7%. As a rule, it does not even reach 70% similarity with other instruments (sometimes up to 69.3% from IT40). But with proper analysis, other pairs should also be taken into account, for example, the US dollar – yen, pound – dollar, euro – dollar.Thus, when determining the dynamics of the course, it is worth paying attention to:Oil and gold prices;GDP of both countries;Inflation rates (Switzerland and Canada);Trade balances of both countries;The situation in the labor market of each country;Central Bank rates;US Economic Indicators;The KOF indicator (being a kind of economic barometer, allows you to anticipate the further value of CADCHF with a slight advance).Climatic conditions should also be taken into account, since tourism and the hotel business are important for both countries. For mountainous Switzerland with its numerous ski resorts and hotels, avalanches, landslides and snowfalls are a significant problem. The same can be said about Canada.Read more: EUR/CHF: exchange rate, online quotes, signals and forecast for todayFeatures of the currency pairCAD/CHF is an interesting tool in many aspects, especially in what is related to Switzerland, its currency and economic system.Being surrounded on all sides by the countries of the European Union, Switzerland itself, however, is not part of it and maintains neutrality, although the influence of the EU is very significant (take at least the pressure on banks to disclose information about accounts). You don't have to be a fortune teller to guess who is the main trade and economic partner of the "country of cheese and chocolate".An interesting feature is the rather late departure of the CHF from the gold standard, which occurred only in May 2000, in comparison with most other world currencies. The negative interest rate of the Swiss Central Bank (currently -0.75%) also looks very unusual against the background of most other currencies. Canada's refinancing rate is currently 0.5%, but this pair has become of little use for the carry trade at the moment.The pair still remains very stable and the analysis on it is relatively simple, compared to many other pairs, but gradually serious changes have begun to occur in the world, which may affect CHF in the long term first of all.Firstly, it is a gradual disappearance of banking secrecy, which is very painful for Switzerland.Secondly, the general migration crisis in Europe, as well as the decline in the yield of Swiss debt securities and the gradual strengthening of the franc, which the Central Bank is struggling with periodic interventions.
May 15, 2022
IndexaCo
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USD/NOK: description, characteristics, trading signals and feautures of the pair
USD/NOK, currency, USD/NOK: description, characteristics, trading signals and feautures of the pair The US dollar and the Norwegian Franc – the USD NOK currency pair belongs to the so-called "exotic" because one of its components - the Norwegian Krone (NOK), is not among the most popular world currencies (which are USD, EUR, GBP, JPY, CHF, CAD, AUD, NZD), for which the vast majority of transactions are made on Forex. The pair is rare, the spread is usually impressive (25-50 points), and not all brokers are ready to give their clients the opportunity to trade it.Due to the very high volatility, USD/NOK can bring an experienced trader not even tens, but hundreds of percent of profit per month, which is very good for a not too popular pair. In addition, a lot of activity makes this financial instrument attractive to scalpers, even despite decent spreads.USDNOK forecast and quote onlineThe forecast for today USD/NOK is based on the indicators of more than 15 technical analysis indicators. The strongest forecast is manifested when all signals on all timeframes are repeated with the prefix Active.Uncertainty and high spreads discourage a considerable number of investors from investing in USD/NOK.Uncertainty in the long-term prospects is not a reason to completely ignore such a profitable currency pair (with a competent approach, the profit can be up to 500% per month or an impressive 6000% per annum!), therefore, regardless of the risk, it makes sense to enter positions, but first it is advisable to look at a fresh short-term forecast.Traders working on this currency pair are well aware of how high its volatility can be. The relatively predictable dynamics of the exchange rate is seen only on long-term charts, within a day or in a trading week, the price writes out steep turns.Read more: USD/JPY: chart, forecast for today, currency pair overviewGeneral characteristicsUSD-NOK is the ratio of the value of the US dollar to the value of the Norwegian Krone.Dollar – Krona is a pair with a direct quote, the main currency is USD, which is bought for NOK. The course display is standard, as with most other tools – up to four decimal places (8,36230), in some terminals up to five.If the price rises, the dollar becomes more expensive against the crown. If the price decreases, it means the dollar is getting cheaper, and the crown is getting more expensive accordingly. Opening a long position, the investor buys dollars, paying them in Norwegian kroner, with a short position on the contrary – there is a sale of the dollar in order to buy Norwegian kroner.During the day, USDNOK can overcome a total of 1000 points and even more, which is significant for a currency pair on Forex.The most active day is usually Thursday, and the calmest is Monday.USD/NOK refers to an exotic pair, because the group of exotic currency pairs includes the currencies of countries with developing economies, or relatively small countries, to which Norway belongs.Due to the specificity of such a currency as the Norwegian Krone, the really stormy trading time for the pair is the period of operation of local exchanges in the European session, but there is also enough activity during the American session.Read more: USD/SEK: description, characteristics, online trading forecasts and feauturesAt the beginning of the 21st century, there was a serious strengthening of the Norwegian krona, the greatest impact on this process was a strong increase in oil prices. Norway is known for its strong economy and high quality of life. Oil prices have a strong influence on the exchange rate of the Norwegian currency. It can be strongly influenced by energy prices in the home region and other movements in the energy market. Currencies are influenced by equal factors, so it is not very surprising that USD NOK is characterized by high risks and high volatility.No matter what anyone says, the United States is still the world hegemon today, and the American economy is the most powerful. By a significant margin, the services sector prevails in the country, accounting for almost 80% of the country's GDP. The role of production has fallen dramatically over the past half century, and now industry accounts for only 19.2% of GDP. Agriculture provides only about 1 percent.International trade plays a huge role for the United States (the country is the largest importer and exporter of goods), the main partners are the NAFTA countries (Canada and Mexico), China, Japan, and the EU.Norway's economy is based on the export of raw materials, hydrocarbons and electricity. Huge reserves of oil and gas, forestry and fisheries, provide the country with significant profits. However, the main source of income is the sale of oil and gas, which accounts for more than 50% of exports, and the main partners: EU and USA. The distribution by sector is as follows:74-78% – trade and services (hotel and restaurant business);20-22% – industry;2-3% agriculture.Tourism is of considerable importance, both for the USA and for Norway. Over the past few decades, as a result of the huge influx of oil money, which began in the 70s, when the development of deposits began on the shelf of the North Sea, the country has transformed and has become one of the most comfortable to live in. At the moment, this attracts a lot of migrants from Africa and Arab countries to the country, which in turn negatively affects tourism and contributes to the growth of crime. Severe weather conditions also often make themselves felt.Thus, we have a post-industrial economy on the one hand (USA) and an export-raw material economy on the other. The main factors influencing the exchange rate of the US Dollar against the Norwegian Krone, which must be taken into account when performing the analysis, are:Prices for hydrocarbons (oil, gas) and raw materials (wood, aluminum);The Fed rate and US economic indicators (trade balance, unemployment rate, business activity, inflation, etc.);The situation on the US stock market (the growth of major stock indices, such as the Dow, S&P 500 or the NASDAQ technology sector index contributes to the strengthening of the pair).Read more: USD/DKK: exchange rate, online chart, signals & forecasts for todayFeatures of the currency pairThe USD currency pair does not add certainty to the pair and the price of oil, which last year slowed down the decline and even strengthened somewhat. The Norwegian economy has another important feature – a reserve fund made up of oil profits, therefore, even in the event of a sharp short-term drop in oil prices, the pair's growth is not guaranteed, since the Central Bank is likely to stabilize the crown by resorting to this reserve.The dollar – Krona on timeframes from H1 and above lends itself well to technical analysis, but, first of all, it reacts to the fundamental latest news, for example, to important economic news on the USA and Norway.Whatever the forecast and the chosen trading strategy, due to high volatility, you need to be especially careful about setting stop losses and take profits. Experts recommend that when setting a stop order, set its value 3-5 times higher than usual, otherwise, with a high probability, it will easily be taken out, and then the price can calmly turn back in the right direction, although scalpers may neglect this advice. The same can be attributed to setting goals.Leverage when trading on the US Dollar – Norwegian Krone also needs to be reduced, up to a maximum of 1 to 50, and even better, if up to 1:20 – 1:10, otherwise the prospect of getting a Margin Call can become a reality even inside the day, not to mention opening and holding long-term positions.
May 14, 2022
IndexaCo
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USD/SEK: description, characteristics, online trading forecasts and feautures
USD/SEK, currency, USD/SEK: description, characteristics, online trading forecasts and feautures Another exotic highly volatile currency pair with a crown, but this time Swedish – USD/SEK.This instrument is similar in many respects to another Scandinavian pair – USD/NOK, but not in everything.The chart for the dollar with the Swedish krona resembles a similar one with the Norwegian one: fast and sharp price movements during the day, with alternating drops and ups, in total, winding up 700-900 points per day, and sometimes more. Also, as with NOK, on timeframes less than H1-H4, the pair is very unpredictable.Today, the pair has some correlation with the iron ore price chart, since the country is a major exporter of it. There is a very large correspondence with the USD/CHF (95%) and USD/DKK (91%, in fact, they move with the Swedish krona in parallel), but there is little correlation with the dollar index chart, only about 4.2%.USD/SEK forecast for today and quote onlineThe forecast for today is based on technical analysis using more than 15 indicators. The strongest forecast is with the prefix Active. The most obvious signal in the medium and short term appears at the moment when all values with the prefix are actively repeated at all time intervals.Due to the significant difference between the economies of the countries whose currencies are combined in this instrument, it can be difficult to make an accurate forecast. Novice traders are not recommended to take up this currency pair, both because of unpredictability and because of its high volatility.If you are going to make a forecast for the USD SEK pair before entering the market, it will never be superfluous to read the latest analytics published by brokers on their websites, although it is worth noting that there are very few of them on the network for this exotic financial instrument, so you will have to rely on yourself to a greater extent.The current strength of the dollar and the presence of serious problems in the Swedish economy, which can easily pull the crown far down, are in favor of strengthening the pair.Read more: USDPLN - description, characteristics, forecasts and feautures of the pairGeneral characteristics of the currency pairThe USDSEK currency pair is an exotic pair with a direct exchange rate. The base currency is the US dollar, which is quoted by the Swedish krona. The trading volume for this pair is small, which explains the large spread. The exchange rate is displayed up to 4 characters after the separator (9.0080), some brokers and individual terminals display 5 characters after the separator (9.00783).The pair trades most actively during the European session and at its intersection with the American one. On the days of the week, the most volatile for USD/SEK, as for most other pairs, is Thursday, the least is Monday.For successful trading with such a tool as the US Dollar against the Swedish Krona, it is desirable to have a sufficient deposit size. This is especially important when it comes to long-term retention of open positions, for example, in the case of trading using the carry-trade strategy (to get a solid profit on swaps, purchase orders must be left open for a long period of time), when the dynamics of the exchange rate may change several times in the short term.Analytics and factors of influence on which the course dependsThe main place in the structure of the American economy is occupied by services and trade (up to 79.6%), in second place is industry with 19.2% of GDP, the rest is accounted for by agriculture. Not the last place is occupied by domestic and international tourism. International trade occupies an important place in the American economy, as the country buys and sells huge volumes of goods. First of all, these are the countries with which the United States has signed the NAFTA free trade agreement (Canada and Mexico), but also a considerable trade turnover with the EU and China.Read more: USD/MXN: quotes, signals, online trading forecasts for today, characteristics and featuresThe Swedish economy began to develop actively after the Second World War and now represents a sufficiently developed specific model combining elements of socialist and capitalist orientation, which, coupled with long-term neutrality, allowed us to achieve a high level of well-being and scientific progress. To analyze and identify important long-term trends in the Swedish krona, it is necessary to have a clear understanding of the country's economy, its orientation, main industries and main sources of income.Approximately 69% of the country's GDP is generated by services and trade, industrial production in Sweden accounts for about 29%, agriculture provides no more than 2%. The economy is export-oriented.From the 60s - 70s, the rapid development of high–tech production in the field of electronics, mechanical engineering, instrumentation, etc. began. One of the most important export items for Sweden is not only the supply of raw materials (iron ore, wood and derivatives: furniture, paper, etc.), but also ready-made appliances, cars (Skoda, Saab), telecommunications equipment.Sweden's main trading partner is the European Union, which it itself is also a member of, but if we take specifically by country, the largest amount of exports goes to neighboring Scandinavian countries (Norway, Finland, Denmark).The most important factors influencing the value of the price of the USD/SEK pair are:The cost of raw materials (iron ore, timber);Central Bank rates;Oil prices (have an impact on the US dollar);Trade balances of both countries;The situation on the labor market (in both countries);The political and economic situation in the European Union as a whole.Read more: USD/DKK: exchange rate, online chart, signals & forecasts for todayFeatures of the currency pair and tradingThe pair is not widespread in Forex, but it can be very profitable in the hands of a skilled trader, bringing hundreds of percent of the profit from the invested deposit in long-term trend trading. Also, due to the high volatility, the tool allows scalping, but regardless of the piper's experience, there is a serious risk of running into impressive losses.Carry-trade on the pair is possible because the refinancing rates are very different: 0.75% in the USA (at the time of writing) and -0.5% in Sweden, however, before you start trading this instrument using the carry-trade strategy, be sure to check the trend and prices for swaps on buy and sell.
May 14, 2022
IndexaCo
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