Forecasts of equities and forex quotes

Cryptocurrency Litecoin LTC/USD forecast for May 9, 2021
Litecoin  LTC/USD is trading at $329.88. The cryptocurrency quotes are trading above the level of the moving average with a period of 55. This indicates the presence of a bullish trend for Litecoin. At the moment, the cryptocurrency quotes are moving near the upper limit of the Bollinger Bands indicator bands. Cryptocurrency Litecoin LTC/USD forecast for May 9, 2021As part of the Litecoin exchange rate forecast, a test of the $321.50 level is expected. Where to expect an attempt to continue the growth of LTC/USD and further development of the upward trend. The target of this movement is the area near the level of $364.20. The conservative area for Litecoin purchases is located near the lower border of the Bollinger Bands indicator at the level of $248.20. Litecoin, 1D, Trader TradWheel Cryptocurrency Litecoin LTC/USD signal for May 9, 2021 The cancellation of the option to continue the growth of the Litecoin rate will be a breakdown of the lower border of the Bollinger Bands indicator bands. As well as the moving average with a period of 55 and the closing of the pair's quotes below the area of $246.50. This will indicate a change in the current trend in favor of a bearish one for LTC/USD. In the event of a breakdown of the upper limit of the bands of the Bollinger Bands indicator, we should expect an acceleration in the fall of the cryptocurrency.Cryptocurrency Litecoin LTC/USD forecast for today, May 9, 2021 suggests a test of the level of 321.50. Further growth is expected to continue in the area above the level of $364.20. The conservative purchase zone is located near the area of $248.20. The cancellation of the growth option of the cryptocurrency will be a breakdown of the level of $246.50. In this case, we should expect the fall to continue.
08.05.2021 Avatar TradWheel Read
Bitcoin prepares to rise above $85,000
The head of CryptoQuant predicted a sharp rise in Bitcoin in the near future. This is due to the outflow of coins from cryptocurrency exchanges. The holders are not ready to sell the leading digital asset right now, but rather keep it on their wallets. We can say that the pressure of sellers is decreasing. A similar situation is happening with the Ethereum cryptocurrency, but Bitcoin has been squeezed within the ascending channel since the end of February, while the ether is steadily moving up. If we suggest that Bitcoin will break the maximum in the near future and postpone the height of the channel up, then the goal of the rise is the level of $85,000 per coin.
08.05.2021 Avatar Solomon Read
USD/JPY Forex forecast for the week of May 10-14, 2021
The quotes of the Dollar Yen USD/JPY Forex currency pair finish the trading week near the area of 108.57. The pair continues to move within the fall and the ascending channel. Moving averages indicate a bullish trend. Prices broke through the area between the signal lines up, which indicates pressure from buyers of the US dollar and the potential continuation of the rise. At the moment, we should expect an attempt to develop a correction and test the support level near the area of 107.35. Then, a rebound and a continuation of the pair's rise to the area above the level of 113.75. USD/JPY Forex forecast for the week of May 10-14, 2021 An additional signal in favor of the rise of the Dollar-Yen Forex pair in the current trading week will be a test of the ascending trend line on the relative strength indicator. The second signal will be a rebound from the lower border of the bullish channel. Here, a bullish "5-0" pattern is also formed, which implies an update of the maximum. The cancellation of the rise of the USD/JPY pair in the current trading week of May 10-14, 2021 will be a fall and a breakdown of the 106.05 area. This option will indicate the breakdown of the support area and the continuation of the fall of the pair in Forex to the area below the level of 99.05. Confirmation of the rise in the USD/JPY pair will be the breakdown of the resistance area and the closing of the price above the level of 111.75, which will indicate a breakdown of the upper limit of the descending channel. USD/JPY trading signal for the week of May 10-14, 2021 Important news from Japan, which may have an impact on the Japanese Yen, is not expected, so the pair will continue to move within the framework of technical analysis.Thus, USD/JPY the Dollar Yen Forex forecast for the week of May 10 — 14, 2021 suggests an attempt to test the support level near the area of 107.35. From where we should expect the pair to continue growing in the area above the level of 113.75. An additional signal in favor of the rise will be a test of the trend line on the relative strength indicator. The cancellation of the growth option of the pair will be a fall and a breakdown of the level of 106.05. This will indicate a continuation of the pair's decline with a potential target below the 99.05 area.
08.05.2021 Avatar TorForex Read
USD/CHF Forex forecast for the week of May 10-14, 2021
The Dollar Franc USD/CHF Forex currency pair ends the trading week near the level of 0.9032. The pair continues to move within the fall and tests the upper limit of the broken down channel. Moving averages indicate a bearish trend. Prices are again testing the area between the signal lines, which indicates pressure from sellers of the US currency and the potential continuation of the fall of the instrument. At the moment, we should expect an attempt to correct the price and test the support area near the level of 0.8745. Next, a rebound and an attempt to continue the rise of the pair with a potential target above the level of 0.9575. USD/CHF Forex forecast for the week of May 10-14, 2021 An additional signal in favor of the rise of the Dollar-Franc currency pair will be a test of the trend line on the relative strength indicator. The second signal will be a rebound from the lower border of the bullish channel. The cancellation of the USD/CHF growth option will be a fall and a breakdown of the 0.8705 area. This will indicate the breakdown of the support area and the continuation of the fall of the pair on Forex with a goal below the 0.8375 area. Confirmation of the pair's rise in the current trading week for the week of May 10 — 14, 2021 will be the breakdown of the resistance area and the closing of quotes above the level of 0.9235. USD/CHF Forex forecast for the week of May 10-14, 2021 Important news from Switzerland, which may have an impact on the Swiss Franc against the US Dollar, is not expected, so the pair will continue to move within the framework of technical analysis.Thus, the forecast of the Franc exchange rate for the week of May 10-14, 2021 suggests an attempt to test the support level near the 0.8745 area. Then, the continuation of the USD/CHF growth in the area above the level of 0.9575. The trend line test on the relative strength indicator will be in favor of the rise. The cancellation of the USD/CHF growth option will be the breakdown of the support area and the closing of quotes below the level of 0.8705. This will indicate a continuation of the pair's decline with a potential target below the 0.8375 level.
08.05.2021 Avatar TorForex Read
GBP/USD Forex forecast for the week of May 10-14, 2021
The Pound Dollar GBP/USD Forex currency pair ends the trading week near the 1.3957 area. The pair continues to move within the framework of growth and the beginning of working out the bearish ”Wolf Wave " model. Moving averages indicate a bullish trend. Prices are testing the area between the signal lines, which indicates pressure from buyers and the potential continuation of the rise of the British Pound against the US Dollar at current levels. At the moment, we should expect an attempt to grow and test the resistance area near the level of 1.4165. Further, the rebound and the beginning of the fall of the Pound Dollar quotes in the area below the level of 1.2255. GBP/USD Forex forecast for the week of May 10-14, 2021 An additional signal in favor of the fall of the British Pound will be a test of the trend resistance line on the relative strength indicator. The second signal will be a rebound from the upper limit of the bearish ”Wolf Wave " model. The cancellation of the fall of the GBP/USD pair in the current trading week of May 10-14, 2021 will be a strong growth and a breakdown of the 1.4565 area. This will indicate the breakdown of an important resistance area and the continuation of the rise to the area above the level of 1.5205. Confirmation of the fall of the GBP/USD currency will be the breakdown of the support area and the closing of the price below the level of 1.3455. GBP/USD Forex forecast for the week of May 10-14, 2021 Among the important news from the UK that can affect the Pound Dollar exchange rate, it is worth highlighting: Speech by the Chairman of the Bank of England Bailey (Bank of England (BoE) Governor Bailey Speech), Manufacturing Production in the UK m / m (United Kingdom Manufacturing Production m/m), Speech by the Chairman of the Bank of England Bailey (Bank of England (BoE) Governor Bailey Speech), Gross Domestic Product (GDP) of the UK q/q (United Kingdom Gross Domestic Product (GDP) q/q).Thus, the GBP/USD Forex forecast for the week of May 10 — 14, 2021 suggests an attempt to grow and test the resistance level near the 1.4165 area. Where should we expect the currency pair to continue falling with a target below the 1.2255 area? An additional signal in favor of a decline will be a test of the trend line on the relative strength indicator. The cancellation of the fall of the Pound Dollar pair will be a strong growth and a breakdown of the level of 1.4565. In this case, we should expect the pair to continue to rise with a potential target above the level of 1.5205.
08.05.2021 Avatar TorForex Read
EUR/USD forex forecast for the week of May 10-14, 2021
The Euro Dollar EUR/USD forex currency pair ends the trading week near the 1.2130 area. The pair continues to move within the framework of a bullish correction and the formation of a large “Head and Shoulders” reversal pattern, which can send the pair to the level of 1.1005. Moving averages indicate the presence of a bullish trend for the pair. Prices moved up from the area between the signal lines, which indicates pressure from buyers of the European currency and the likely continuation of growth from the current levels. At the moment, we should expect an attempt to develop a bullish correction and test the resistance area near the level of 1.2165. Where is the expected rebound and the continuation of the fall of the Euro Dollar. The potential target of the decline is the area below the level of 1.1085. EUR/USD forex forecast for the week of May 10-14, 2021 An additional signal in favor of the fall of the EUR/USD currency pair on Forex will be a test of the broken trend line on the relative strength indicator. The second signal will be a rebound from the upper border of the ”Head and Shoulders" reversal pattern. The cancellation of the option of reducing the quotes of the Euro-Dollar pair in the current trading week of May 10-14, 2021, will be a strong growth and a breakdown of the level of 1.2375. This will indicate the breakdown of the resistance area and the continuation of the pair's growth in the area above the level of 1.2775. With the breakdown of the support area and the closing of quotes below the level of 1.1545, which will indicate the completion of the formation of the reversal model, as well as the breakdown of the ”Neck” line. EUR/USD forex forecast for the week of May 10-14, 2021 Among the important news from America and Europe in the next trading week, which may have an impact on the EUR/USD rate, it is worth highlighting: The ZEW Germany Economic Sentiment Indicator, the number of open vacancies in the US labor market (United States JOLTS Job Openings), Retail sales in the US m/m (United States Retail Sales m/m).Thus, the EUR/USD  forecast for the week of May 10-14, 2021 suggests an attempt to correct and test the resistance area near the level of 1.2165. Where should we expect the pair to continue falling to the area below the level of 1.1085? An additional signal in favor of a decline will be a test of the resistance line on the relative strength indicator. The cancellation of the Euro-Dollar fall option will be a strong growth and a breakdown of the level of 1.2375. In this case, we should expect the pair to continue to rise with a potential target at 1.2775.
08.05.2021 Avatar TorForex Read
New cryptocurrency Chia collapsed three times
The new cryptocurrency Chia (XCH) has fallen in price three times since the start of trading on Monday. According to WEIBO, the token has risen to the second place among the most popular cryptocurrencies.The growing popularity of cryptocurrency Chia may lead to a shortage of hard drives and solid-state drives in the consumer market.The token of the main Chia Network network began trading on the OKEx crypto exchange on May 3. According to CoinMarketCap, in four days, the price of the token fell from the highs of the first day of trading from about $1800 to $600.Earlier, miners caused a shortage of hard drives and solid-state drives in Hong Kong before the launch of the main Chia Network. Already in mid-April, the main stocks of HDD and SSD were sold out, and because of this, their price tripled.The Chia Network blockchain was created by Bram Cohen, an American developer and creator of BitTorrent. He believes that bitcoin and other cryptocurrencies running on the Proof-of-Work (PoW) algorithm use too much electricity.Chia runs on a Proof-of-Space-and-Time algorithm and uses disk space as a transaction validator. Users who provide their own disk space to support the network are rewarded for this.The token is traded on OKEx exchanges, Gate.io, MXC.COM and Bibox. The amount of disk space occupied by the cryptocurrency has currently reached 2.11 exabytes. 457,402 coins were mined out of just over 21 million units.The main network of the project will be launched in March 2021. According to the February 10 white paper, the company raised about $16 million in funding through SAFE agreements. The last $5 million round ended in August 2020. The company is supported by venture funds Andreessen Horowitz, Galaxy Investment Group, DCM Ventures, True Ventures and others.
07.05.2021 Avatar Solomon Read
Ethereum Classic Soared 30 times — What's Going on?
Cryptocurrency Ethereum Classic (ETC) set a new historical high of around $167 on Thursday. Since April 26, when the ETC rally began, the cryptocurrency has risen in price almost 6 times, and since the beginning of the year — 30 times.Cryptocurrency Ethereum Classic shows the best daily and weekly dynamics in the top twenty of CoinGecko. The growth of ETC occurs against the background of the general rise of the crypto market. So, cryptocurrency Ethereum yesterday updated the historical maximum just below $3.6 thousand. Dogecoin rose to a new high of $0.69 on Wednesday.Ethereum Classic appeared on July 20, 2016 as a result of the Ethereum network hard fork. This happened after the infamous attack on The DAO project, when 3.6 million ETH worth $50 million at the exchange rate at that time was stolen.Most developers and other ecosystem participants supported the option of changing the transaction history to eliminate the consequences of hacking. However, this approach was not shared by everyone – opponents of the proposal preferred to stay in the "classic" version of the Ethereum blockchain."Mining Ethereum and Ethereum Classic now has about the same profitability," said Will Foxley of the mining company Compass. — This is remarkable considering where Ethereum Classic was a year ago: trying to recover from multiple 51% attacks, low practical value, and a split among key developers."Ethereum Classic is also becoming more interesting for miners in the light of the upcoming Ethereum changes. In the summer, the blockchain of the second largest cryptocurrency will activate the EIP-1559 proposal, which provides for burning most of the commissions paid by users, and in the longer term, it will switch to the Proof-of-Stake consensus mechanism.The Ethereum Classic community decided not to support the latest changes to Ethereum, although they used to use the results of the work of the developers of the related blockchain, which is superior in resources.
07.05.2021 Avatar Aon Read
How to choose a reliable broker
At the end of the last century, the forex market emerged. The currency began to change its rate due to the influence of external factors. The first brokers appeared as early as the beginning of 1990. Now the market is full of unique offers from traders. Therefore, making the right choice was not as easy as it may seem at first glance. It is worth understanding what you should look for when choosing a broker. The right broker can be distinguished by the following features: considerable professional experience, official working license, comfortable working conditions, quality customer service.LicenceThe broker's activity is an intermediation and implies the execution of transactions. It is regulated at the legal level. Experts believe that the licence proves the transparent work of the company. It proves the safety of personal data and client funds.How important is professional experience?Many people do not pay attention to this criterion. It is worth mentioning that it takes time to develop effective strategies. Young brokers can only take their cue from someone else's knowledge. There will be no proper impact in this case. To develop your own strategy, you need experience in the work. There are also unscrupulous firms that attribute a few years of work to themselves. The authenticity of such data can be verified online. This is important as there are many fly-by-night companies. The client should double check the facts about the broker's activities. This will save him from crisis situations in future.Comfortable working conditionsWith this criterion, the client can check how comfortable the broker's platform is to use. This is a very important criterion. The service should be supported by modern gadgets. In addition, the software should be regularly improved. The data should be transferred clearly and smoothly. It is very important that a trader gets access to global trading exchanges and all the additional tools to control the transactions. A stylish website interface will attract an additional number of clients. The fast payout feature will differentiate the broker from its competitors. It is better to place useful information easily accessible. Trading signals should inform the client in advance. The underlying assets should also be available. The client should not look for another broker. All options should be managed through the personal locker.Withdrawal of fundsThey should not restrict the user in the options of withdrawing the money earned. The fewer options for payment systems, the lower the platform rating. Global banking networks are as secure as possible. It is tried and tested. Replenishment is interest-free. All data is reliably protected. It is important that the broker can guarantee prompt withdrawal of funds.Customer serviceThe staff should be competent. Regardless of the client's experience, the staff should be able to provide adequate support. Questions may arise at any stage of using the software. In this case, the operator must be able to familiarise the client with the functions of the system to reveal its main advantages. Enquiries should be dealt with promptly. In addition, the broker's website should provide materials for self-study. Verified users are usually given access to additional study materials. Support staff should be available via live chat, email or phone.ConclusionThe above points are the most important criteria for choosing a quality broker. It is better to study the features of the software even before registering. Special attention should be paid to the length of time the office will operate and the availability of a licence. Special care helps to avoid problems. A broker must be credible. The broker's job is to provide comfortable software for users. IndexaCo
30.04.2021 IndexaCo Read
8 psychological tips for becoming a successful forex trader
To be a successful trader in the financial markets you need to follow these tips.1. Do only one thing and do it right.All you have to do is become an expert in only one type of trading. There is no need to trade 10 different trading strategies. Focus on just one system. Learn it perfectly, understand it and become an expert in it. If you do it well, you can become a very successful marketer.For example, trade only one type of trade over and over again and don't think about stop-loss placement and entry. The only thing to think about a bit is the location of the profit target.2. In trading, patience is generously rewarded.Patience pays off, and patience is probably the most important thing in trading. Successful traders can patiently wait for their perfect trading signal. Even several days. Many amateur traders trade mainly for fun and adrenaline or simply because they need to do something all the time.3. the best time to trade is when everyone thinks otherwise.When you think about it, it makes sense. The best time to buy is when everyone is sure the price will fall. Conversely, the best time to sell is when everyone is sure the price will rise. This simple change of perspective can yield incredible profits, even if you look like a fool (in the eyes of other marketers).4. There's nothing wrong with being wrong.Sometimes it happens, and it's definitely not a reason to panic. If it happens, the easiest thing you can do is just close the deal and wait for the next one.5. Let the business come to you.Take your time to trade on fifty different currency pairs and ten different timeframes. Wait for the market to show its cards. The most important and most difficult thing in trading is the art of waiting. Watch the market and wait. Wait for the market itself to offer you the opportunity to make a trade with a high probability of success. Many novice traders enter a trade for no reason at all. Successful trading means monitoring the market and being ready for the market to offer you money (the perfect trading signal). When that time comes, the successful trader quickly seizes the opportunity the market offers him.6. Create your trading style.Some "experts" say things like "Fibonacci doesn't work!" Or "never trade announcing new news", or "scalping in forex is impossible". But one thing is for sure. It doesn't mean you have to reinvent the wheel to become a good trader. It doesn't matter to trade like other successful traders. The point is that your trading style has to make sense to you.That's exactly what we recommend you to do. The easiest way is to adopt a strategy from one successful trader, and adapt it to your liking as it suits you. You will understand your strategy, it will make sense to you and therefore you will trust it.7. Trading should entertain you.Like anything in life, if you enjoy something, you are willing to sacrifice all your time and do it 110%. You need to know as much as you can about the markets. You need to have the strength to persevere and be able to change your ideas and beliefs.8. Everyone has moments when they fail.Even the best traders sometimes have their worst periods in the form of a series of losing trades in a row. But the most important thing is not to lose confidence in yourself and your trading system. The next time your signal to enter a trade comes up, you just need to open the trade, even if you had 5 losing trades in a row before. You have to really trust your strategy. And that's how you should look at a series of losses. It is important to know that in the long runyou will get back that lost money and some more, so there's really no reason to panic. IndexaCo
28.04.2021 IndexaCo Read
Why does my TS show a signal to sell, but no one is selling?
Kudos to you for managing to develop your own trading system. Now it is time to start testing it. Even the development of a unique trading system does not guarantee that the owner of the system will start making money in forex.A good trading system should skillfully give signals both in a trend and in a trading corridor (which is sometimes called a sideways trend).If your TS works well only in a corridor, it will always tell you to sell when it gets to the upper boundary of the corridor. And when the bulls will break through the level, it will start shouting that a unique moment to sell has arrived. In reality, however, it is dangerous to enter a bearish trade when this level is broken through because you will start losing money as soon as the level is broken through. The situation will be exactly the same when you break the support level.The trend trading system will cheat you the moment the quotes are locked into a narrow corridor. When approaching the upper boundary of the corridor the system will give a signal to buy, and for the corridor this is the perfect place to sell. As a result, you will be constantly chasing the market, lagging behind profitable traders by several steps.Why else would trading system signals mislead a trader? Some developers create TSs, which work fine only at certain intervals. For example, a trading system can give good signals only on the hourly chart. And if one tries to adapt it with the programmed parameters on the 15-minute chart, the trader can expect problems.Quite often the market starts growing unnoticeably on small intervals, and later bigger players catch the beginning of the movement. Then the increase in quotations becomes visible even on the hour and higher charts.Other trading systems may be solely suitable for trading the Euro against the US dollar, while the GBP against the same dollar may give false signals.What should be done first? After development, proceed to the testing phase on a demo account. Do not invest real money until you are sure that the signals are indeed correct. Therefore, move on to trading with real money only after the final testing and obtaining profitable results. IndexaCo
27.04.2021 IndexaCo Read
Actions of a new Forex trader
Trading price signals instead of emotional reactionsIt is said that over 90% of active traders in the Forex financial markets do not make money in the long term. There is a lot of confusion about the exact numbers, but it's safe to say that the more time you spend in the market, the harder it is to make profits on a consistent basis. Even experienced investors sometimes make buying and selling decisions at the wrong time, but why does this happen? It usually comes down to the trivial emotions (impulse actions) of the trader.Most Forex traders and investors' mistakes are emotional because they rely on internal signals. Their emotions give rise to unproven and often unproven buying and selling strategies. I think you too have witnessed many wild price swings that make no sense in the current market conditions. If you want to make a qualitative leap in profitability, the first thing to do is to stop buying or selling anything without a compelling, quantifiable external reason for doing so.The main driving force behind the NASDAQ 5000 bubble in March 2000 was greed instead of real asset valuation. Buyers continually invested in dotcom stocks with no real intrinsic value and held them because of greed for higher profits and higher highs. The NASDAQ 5000 trend could be traded at a profit with the right entry and exit signals. Simple chart patterns and moving averages made many traders a lot of money in 2000. And some people are the opposite. A trader I know had enough money to pay for a new house in March 2000, but he lost everything.The problem in this period was traders and investors who traded based on their personal euphoria, which allowed them to hold their positions during a parabolic uptrend, preventing them from taking profits and closing their positions. The use of trailing stops would have helped them exit and maintain large profits instead of rolling their technology stocks down completely.In March 2009, all major stock indices hit lows that seemed impossible a year ago. Selling escalated because of a fear of owning stocks and sellers were willing to give them up at ridiculously low prices. Long-term trend traders should have given up on stocks in long positions and locked in losses in 2008 using any reasonable sell signal.The easiest sell signal for a Forex trader or investor to use to preserve their capital is to dump their holdings and go into cash when the S&P 500 index, tracked by ETF SPY, closes below its 200-day simple moving average. For stock indices, this simple exit signal reduces capital drawdown by about 50% (this has been shown by history testing over the past 15 years). In most cases, it does not increase returns, but exiting when the 200-day simple moving average is lost will cut the loss in half!You have the ability to exit in cash during market corrections, bear markets, recessions and market crashes, and you can wait to start buying again when the indices start to close above their 200-day moving average. This could be possibly the most important signal in the Forex market! It is highly advisable for most Forex investors and traders to cash out when the stock market indices are trading below their 200-day moving average, and wait for better investment opportunities. Exchange-traded index-tracking funds such as SPY, QQQ, IWM or DIA, which track closes below the 200-day moving average, should be your first warning indicator of danger.Pride (or vanity) makes people hold what they thought was a good investment or long position, even if the price of that asset has fallen sharply. The only sensible reason to buy something is the possibility of a rise in price. Pride and unwillingness to admit they are wrong initially puts the trader in a losing position. These blinders, a visor that prevents the use of stop-losses and proper exit signals. A trader who is too proud will not even understand the exit signals, because he/she does not think about the possibility of making a mistake.Hope is another dangerous signal used by traders. A trader will buy a stock that is falling lower day after day based on an unfounded hope that it will still go up. Hope is not a signal to buy. A stock index approaching the 30 RSI and above the 200-day moving average on the daily chart during a bull market is a much better buy signal. You must have a quantifiable external reason for buying falling assets, which increases the chances of making the right decision based on price movement, not because you hope something good will happen.Fear is one of the internal trading signals that completely undermines a trader's ability to profit. There are two ways to be profitable: have more wins than losses, or have big wins and small losses. A system with a high winning percentage must have equal amounts of wins and losses for your system to be profitable. Similarly, having big wins and small losses, even a small winning percentage system can allow you to make money, as long as there are big enough wins. Huge losses will make you unprofitable regardless of big wins or high winning percentages because you will squander your profits from winning trades and eventually destroy your trading capital.Fear can signal a trader to make a small profitable trade while the profits are still there before they disappear, making it difficult to make any big wins. This is also a big detriment. It's better to use external indicators. Exit a trade based on a trailing stop, a time stop or because the target price has been reached, rather than giving in to your fears. Fear can also cause a trader to miss a real entry signal because they are afraid of losing money.Greed is the internal impulse that can probably hurt you the most, forcing you to trade with too much position size. Greed is a misguided confidence. Every trade signal you use should be designed to increase the probability in your favour, but even a good trade signal is not a guaranteed win, it is simply an opportunity with a good probability. Many excellent trading systems have only a 60% win rate. The key is how a trader manages to keep 40% of losing trades small while maximising profitable ones.Greed can also prevent a trader from completing a trade when their profit target has been met. Greed for profits after the risk to profit ratio has changed from the original entry can lead to losses when the trend reverses. One of the biggest mistakes a trader can make is not to lock in profits at his target mark when the market turns around, instead of waiting for the price to recover. It is usually too late. Greed dictates the desire to trade big and stay in winning trades forever. Your clear trading plan must overcome your greed, control position size and have a strategy to lock in profits when targets are available.The main cornerstone message of this article is that your emotions are the worst trading signals you can use. Emotions pull you to buy falling assets at the start of market corrections and bear markets instead of waiting for the market to find key price support levels. Indicators are created to give you a measurable reason to do the opposite of what your emotions tell you.Your trading success will depend heavily on your ability to approach the markets systematically, using a trading plan to use profitable buying and selling signals that fit your market beliefs and methodology. You need a good external guide that you will follow regardless of what your emotions tell you. Trade with external indicators, not with your feelings, opinions or emotions. IndexaCo
21.04.2021 IndexaCo Read
Forex trading: understanding the forex market
The foreign exchange market is better known as Forex or FX. Trading in this market has become very popular in recent years. However, this is not the case - Forex trading raises a number of questions. For example: what is the foreign exchange market? Which currency pairs are best to trade? Is currency trading risky? Some of the answers to these questions will be found in this article.What is the Forex market?The foreign exchange market is also called the Forex market or the English foreign exchange market. It is simply a market where currencies are exchanged. According to the Bank for International Settlements (BIS), the foreign exchange market is the largest market in terms of total volume, with up to USD 5 trillion traded daily. It is not a physical place, but rather an electronic network where institutions or individuals trade with each other.The left-hand currency is called the base currency and the right-hand currency is called the quote currency. The second currency indicates the value relative to 1 unit of the base currency. For instance, the formula EUR/USD = 1.4000 implies that EUR/USD trades at 1.4000, i.e., 1 Euro has a value of $1.40. The first currency is always expressed in the second currency. USD/JPY at 110.50 means that one USD is worth JPY 110.50. EUR/USDWhat are the best currency pairs to trade?The best currency pairs to trade effectively depend on your trading style. If you have a short term strategy, for example, if you like to scalp, then the major currency pairs will be most profitable for you because of the low spreads.On the other hand, for a fundamental trader, smaller currency pairs will be of interest based on long-term analysis. The most profitable currency pairs may be those involving the Australian dollar, Japanese yen or Canadian dollar.The best forex currency pairs:EUR/USD: this pair has the lowest spread and is not very volatile.GBP/USD: this pair is interesting in terms of spreads and possible gaps, but it is quite volatile.USD/JPY: this pair has low spreads and offers some interesting possibilities. GBP/USDHow to get started trading currencies online?To start trading currencies online, follow these steps:- Choose a regulated and reputable broker- Choose a broker by the quality of execution of trading instructions- Decide on the trading style that suits you best (scalping, intraday trading, swing trading - you keep your position open for several days)- Determine the appropriate leverage effect in the stock market according to your strategy and experience.- Do not invest more than you can afford to lose.- Choose an intuitive, simple and secure trading platform such as MetaTrader 4.- Try all the above steps on a demo account, before trading live.GoldIs online currency trading dangerous?Like any financial investment, currency trading online is subject to risks. However, there are different methods to control these risks:- Determine the price of the currency pair at which you want to close a position if developments are unfavourable (for example, if you buy and the price falls, or if you sell and the price rises),- Determine the size of the trade so that your potential loss should not exceed 2-3% of your capital per trade,- Estimate your risk/return ratio (loss/profit) before you open the trade. By default you should have a greater potential for profit than loss, e.g. risk 50 pips, but try to make a profit of e.g. 100 pips.For proper money management and risk reduction it is advisable to start trading on a demo account and try things out on the dirt first. Such an account will allow you to trade in real market conditions, but with fictitious capital, so that you have a complete understanding of the foreign exchange market without any risk. IndexaCo
18.04.2021 IndexaCo Read
Which stocks to invest in 2021
The coronavirus pandemic that struck the world in 2020 illustrated the reality of the marketplace. Companies that were able to demonstrate their strength even in the face of global change immediately emerged as leaders.Investors planning to invest in long-term investment assets to increase their returns over time are opting for companies that continue to expand and pay dividends to shareholders which can then be used as an investment vehicle.Analysts, having monitored the market, have compiled a list of organisations whose businesses have proved to be as sustainable as possible, hence we can now tell you which stocks to invest in in 2021. These are the companies that experts believe will be the most promising over the next 10 years.StarbucksStarbucks (SBUX) is the best-known coffee brand, with a chain of locations almost all over the world. In January 2021, there were 33,000 shops on the planet, and the company plans to open another 22,000 coffee shops by 2030, after which it will boast the largest international coffee and coffee drinks chain.In addition to its impressive organisational scale, Starbucks has been remarkably stable. Since the company first went public 30 years ago, Starbucks has experienced more than one crisis, but this has had no effect on its market position, profitability or sales numbers, which have been growing for 27 years!Note that only 3 years in the company's 30-year history have not been very good! Even in the "fateful" for many such institutions in 2020, despite the introduction of quarantines and a reduction in customer numbers, the company was able to go "in the plus" - the average purchase check went up slightly, and the coffee shop began working "to take away".An additional "plus" for the company's stock is the fact that dividends are rising in value, but Starbucks continues to pay them out to shareholders. For example, Starbucks shares are up 33.26% in 6 months.This shows the popularity of Starbucks coffee, the company's skillful management, and the opportunity to increase your income by investing in Starbucks stock.PayPalPayPal Holdings (PYPL for short) is a successful international payment corporation that most people in Russia are likely to have used. The company has only benefited from the coronavirus, or more precisely, from the transition of private consumers and businesses from cash payments to a cashless payment system.In 2015. PayPal evolved into a separate company whose total payment volume increased 3.5 times in 5 years. In January 2021, that figure stood at $936 billion and PayPal can compete on an equal footing with international brands such as Visa and Mastercard. The money earned by the company is invested in its own shares - management buys them back from individuals to add value for investors.Experts believe the e-transaction system is one of the market leaders in digital payments, but it is not the limit - PayPal's management has officially said it plans to triple its payment volumes by 2025, launching new financial services and expanding its cryptocurrency service. It also plans to double the free cash flow indicator, which will open up new opportunities for investors.PayPal has not yet paid any dividends to its shareholders in 2021, investing all of its money in its growth, but by 2025 it will return $12bn to $16bn to its shareholders through a share buyback, which has seen a 147.6% increase in value in one year alone.The US retail giant has suffered in recent years from competition from Amazon, the biggest online retailer. Despite the challenges, the supermarket chain has managed to hold its own. Now Walmart is delighting investors with a rapid move in the right direction.The retailer's new business model successfully combines online and offline commerce. With a wide network of shops at its disposal, Walmart can use them as pick-up points. At the same time, each supermarket becomes a processing centre for online orders and a dispatch point for parcels.Another innovation that the retailer has tested is the Walmart+ subscription program. It is designed to capture the value of the retail giant's offerings for consumers.In addition to its traditional role as a retailer, Walmart is preparing to become a healthcare provider. Plans include creating a network of clinics that will be located in close proximity to existing supermarkets. Along with gas stations already operating next to shops, Walmart will focus on mixed-use spaces where consumers can buy goods and receive services.The market believes in the retail giant's new vision: the company's share price has risen by almost a quarter in the past 12 months. However, Walmart's growth momentum has lagged behind the market as a whole. However, the company's success demonstrates that it has not exhausted its potential. DisneyThe Walt Disney Company has become a textbook example of the main principle of success in the current era. The ability to change by quickly adapting to consumer demands and new realities has helped Disney to maintain its leading position in the film and entertainment industry.The Disney+ streaming service brought the company the lion's share of its revenue during the pandemic. The platform allows users to enjoy content created by industry giants such as:Disney;Marvel;LucasFilm;Pixar;20th Century Fox.After the closure of cinemas and theme parks, the streaming service continued to generate revenue for Disney. Its size even allowed the company to make up for the losses caused by the temporary shutdown of Disneyland. Before the pandemic, theme parks were Disney's main revenue stream.The entertainment giant recently released a report which revealed that the streaming service was able to attract more than 146 million paid subscribers. The company plans to increase this figure to 230-260 million by 2024, and to 300-350 million by global subscriptions. However, the current number of subscribers is also staggering: by comparison, streaming industry veteran Netflix boasts a figure of 195 million.Prospects for other lines of business should also inspire optimism in Disney's investors. Vaccination is gaining momentum around the world, which means the end of the epidemic is near. Once the restrictions are lifted, the company's films will return to the box office and the theme parks will be able to welcome guests again.AirbnbThe pandemic took a heavy toll on the accommodation rental platform. Despite this, Airbnb is well-positioned to make a comeback. The company offers services that are in high demand and trusted by its customers.During the first nine months of 2020, Airbnb suffered losses but managed to turn a profit in the last quarter. The platform had 54 million registered users in 2019. Analysts agree that this is not the limit for growth and development. IndexaCo
28.03.2021 IndexaCo Read
How to become a trader from scratch
Making money from price movements is the fastest way to make a profit. You can double or triple your investment in just a few minutes. This is what many people, tired of overwork or unemployment, would like to do. And so most of these people began to wonder how to become a trader from scratch, what it takes and how promising this kind of activity is. The answers to these questions are covered in the following overview.Who is a trader?To begin with, we must try to understand who a trader is. Essentially, he is a common speculator, who buys cheaper and sells dearer. To do this, he needs to have a stock of money - in today's world, this is electronic money. Also, he needs access to the quotes and assets to be traded, all these conditions are provided by numerous brokers.The trader earns money on the difference between the buy and sell price. And it does not matter whether the price is falling or rising. Anyway, with accurate analysis, he will always be in the black.Professional skills and knowledge of the traderTo have such prospects let's consider what you need to become a trader:Firstly, one needs to have a trading terminal or access to one online;Secondly, you need to understand how to evaluate the possible rise or fall of quotes. And for this you need to have your own trading strategy;Thirdly, you need to know how to manage your money. This science is called money management;Fourthly, to become a trader from scratch you have to manage your emotions and control your behavior when analyzing or opening a deal;Fifthly, you need to choose fundamental or technical analysis.But these are not all the conditions. Although they are easy to follow, you will have to develop or strengthen your existing skills and personal qualities. A trader must be stress-resistant, ready to process huge amounts of information, and make numerous calculations. They must also:Know how to use his calculations;be able to stop and rest on time;be disciplined in their analyses, keep notes, and not disregard trivialities.At the same time, a future trader should not be complacent. This work is constant professional growth. Experienced traders never stop at their achievements. They have to improve their trading systems and find brokers with more favorable conditions. And in recent years, such traders have to master automated trading, where trading experts, expert advisors, systems, and robots are used.What else a true expert in trading should possess is the ability to choose assets for trading. There are hundreds of currency pairs available for those who want to become a Forex trader.The cryptocurrency market is gaining particular interest, especially among young traders. There are already hundreds of trading instruments with different volatility and yields.There are about the same number of commodities, stocks, options, and futures. This direction will be of interest to those who wish to become a trader in the stock market. Classification of tradersProfitability and speed of making profit are the main criteria in classifying traders. There are such types of currency, stock, and cryptocurrency speculators:Scalper - trades in time intervals of no more than 5-15 minutes. They can open dozens of deals during a day and always have a lot of false signals, so they take as little profit as possible from each deal;Intraday trader (intraday) - works with timeframes from 15-30 minutes to 1 hour chart. He closes all his orders before the end of the trading day;Mid-term - trades for several days. As a rule, it is executed until the next weekend. Leaves deals with positions rollover to other days; analysis is conducted on H1-H4 timeframe;A trader with a long-term outlook - opens positions only on daily, weekly, and monthly charts. Its transactions can be active from 2-3 weeks to a year.You may become a trader in any of these categories, the main thing is to follow the sequence described below. The 6 steps of becoming a traderThere are only a few steps to become a trader - some of them are very simple, others will take some time. So - how to become a trader, step by step:Get training - on the basis of the chosen broker, on books of famous speculators, on third-party resources, professional webinars.To choose the broker with the necessary set of instruments, official registration, financial license, and obligatory registration at the international regulator.Develop your own trading strategy.Open a demo account, which you can use to test the broker's conditions, service quality, and testing your trading system.Open and deposit an objective real account.Make a trading plan.That's basically it. Now become a professional trader, start earning and take pride in your new profession. Having passed all these stages, in the near future you will see whether it is worth becoming a trader or not. The fact is that you can earn by investing in trading. But it is a separate topic for discussion. Amount of profit and tips for beginnersProfit depends on the size of the trading deposit, the number of opened orders, and the number of profitable deals. The trading lot size, the amount of leverage, broker's fees - all this affects the final sum of the profit. In practice, you will have to learn how to calculate all these things.Traders with experience advise not to make mistakes. For example - do not rush headlong into trading, leaving your main work. There is no need to borrow money to replenish your deposit - only use your own, even if it is small.Do not treat this activity as a game, an extra income - it is a job like any other.And now that you know everything you need to know about this job, take the first steps in mastering the profession and become a successful trader, and earn as much as you need for full financial well-being!IndexaCo
27.03.2021 IndexaCo Read
BITCOIN MAY GROW IN 2021 TO $300.000
Bobby Lee, who is the founder of the BTCC crypto exchange, believes that by the end of this year, bitcoin can rise in price to 300 thousand dollars. In the summer, the quotes will rise to the level of 100 thousand dollars. At the same time, Bobby Lee warned that after such a significant increase, the price of bitcoin will begin to fall. The downtrend will be observed for several years. A year ago, the most popular cryptocurrency was trading at a price of 5-6 thousand dollars. Today, its cost exceeds 53 thousand dollars. In the middle of this month, the bitcoin exchange rate once again updated the record. It is now at $61844. Yesterday it became known that during trading on the peer-to-peer market in Turkey, the price of bitcoin reached the level of 100 thousand dollars. The reason for such a sharp rise in the price of the cryptocurrency was the fall of almost 14% of the Turkish lira after the head of the country's Central Bank was dismissed. Google reported that during this period, the number of requests from Turkish users regarding bitcoin jumped almost six times.
23.03.2021 IndexaCo Read
GAP on Forex
A formation on a price chart known as a "GAP", which stands for "price break", is classified as a technical analysis pattern. Under certain conditions, such formation allows to analyze and predict the price behaviour and works out perfectly in deals.How to determine the Gap on the chartVisually, it represents a break in the price curve with a sharp jump up or down, either with or against the trend. It is not equally visible on different types of charts. For example, on the candlestick and bar chart, the GAP is clearly visible, while on the line chart it is more difficult to detect.Why does GAP occur?The reasons for its emergence in different assets can be different, but they are associated with a single component - a sharp change in the market situation. Price gaps can form in the following circumstances:1. During the weekend.The information that comes after the market closes is not considered in the quotes, and at the market opening, this factor will cause a sharp fall or rise in the quotes with the formation of a gap in the appropriate direction on the price chart.2. At the change of trading sessionsSuch a GAP is formed due to different circumstances of the market. It occurs rarely, it appears against the background of abrupt changes in the market, and with a proper understanding of the market situation, it works well.For example, if the opening of the session is accompanied by a sharp upward price break, the market situation can be considered in the perspective of an upward trend. If there is a GEP going downwards, we can assume that a downtrend is about to form.3. When an "information gap" appears in the quotes flowThis event should be considered as one of the technical aspects when the market stalls on the background of a long absence or on the eve of the release of, particularly important news. If the forecast for the respective asset coincides with the news event, the price gaps on that asset will be minimal, otherwise, a large and beautiful GEP can be seen on the chart.Gaps are more clearly visible in highly volatile assets that form small candles on the chart. Their frequent appearance is characteristic of the stock market and the metals market.GAP as an analysis and trading toolThe formation of price hollows (GAPs) can be used in trading practice as a separate pattern or as a supporting tool in a trading system, the rules of which do not prohibit it. In the analysis of the market situation, the GAP is perfectly combined with any analytical tool. There are several variants of its use in trading, depending on the place and time of its formation. Famous and world-renowned traders also use it in different ways, everyone has his own view of the situation regarding the price gap.There is also a basis that unites the different views - the boundaries formed by the GAP should be viewed as a price channel, bounded by significant price levels. By breaking one of them towards the second level, the price signals that it will not tolerate a "void" and will soon fill it. This event should be used when opening a position in the direction of the breakout.What are the GAPs?The model is classified by the size of the gap in price and its direction, allocating four categories:1. an ordinary GAP - it is characterized by a small gap, barely visible on the price chart and is insufficiently informative for technical analysis. Most often such a gap on the chart is quickly covered by a trend.2. The Gap Breakout is a more useful type of Gap, occurring at the opening of the market. It is characterized by the price breaking through trend levels and channel borders.3. Acceleration gap - such GAP is characterized by its abrupt formation on the accelerated trend, rapidly gaining strength.4. Gap depletion - places of its formation should be looked for near strong price landmarks.The price always returns to the level where the GAP was formed, in order to fill the "market void" created by it.Famous traders recommendWhen they say "famous traders", they do not mean just successful traders, but people with deep knowledge of the specifics of the market, laws of its operation, and patterns in price movement.1. John Murphy is a well-known trader, money manager, brilliant analyst, and author of many works devoted to trading. His trading experience is about 30 years.J. Murphy believes that the result of market forecasting by means of GAPs depends on the place of their formation on the price chart, and also distinguishes four types of this candlestick pattern:1) Simple - its appearance is characteristic for the calm market, this kind of gap is not of interest for forecasting its further direction. Its formation on a specific asset indicates a small interest of players in this asset, so even a small amount of investment can contribute to its appearance. Analysts ignore this signal.2) On the Gap - In terms of potential profits, such a GAP is interesting. It appears in the final phase of the formation of a certain price pattern and may indicate a significant change in the market situation. It occurs less frequently, but it is closely related to almost all known patterns and is a confirmation of the signals from them.Its appearance often occurs against the background of growing trading volume and its market void is rarely, rarely or almost never overlapped by the price. Murphy derived his own pattern for this GAP - the higher the volume at its formation, the less likely it is to overlap the price in the long run.3) On the breakaway - it is characterized by formation along with the trend, it is often situated in its middle, several price gaps may appear at once. It is a signal to the continuation of the current trend even at small volumes of trade. We should count the points before the Gap formation and multiply the result by 2 to find the number of points the price will be able to pass before the reversal.4) On the flying out - it is formed in the final phase of the trend with the gaps of 2 and 3 types preceding it. Traders use it as a signal to open opposite deal when the price is in the range of its channel and rushes to its closing.2. Jack Schwager is a trader best known for making accurate forecasts of price movements on the futures market. He is head of Fortune Group holding company, researches dynamics of hedge funds, conducts seminars on "Market Analytics".J. Schwager, like J. Murphy, also distinguishes four types of GAP:1) Normal - not informative, recommends ignoring it.2) Gap on breakdown - it is formed when the price leaves a certain range. Schwager recommends it to be used as a strong trading signal, provided that this GAP does not overlap the price for several trading days.3) Acceleration Gap - formed in parallel with the acceleration of the trend and can be formed several times for several consecutive days.4) Exhaustion Gap - drawn at the final stage of a trend, it is used as a signal of an imminent change in the trend.Many successful traders are excellent analysts, who are able to conduct a deep analysis of the market and give the most accurate quotes forecasts. You should listen to their recommendations. 
04.05.2021 IndexaCo Read
3 major cryptocurrency trader mistakes
Cryptocurrency is in vogue these days, and its popularity continues to grow. With the frequent emergence of new cryptocurrencies and people with high social clout, such as Ilon Musk, scribbling daily tweets on the subject, the concept of digital currencies continues to gain momentum.Subsequently, millions of people from all over the world are turning to the most famous cryptocurrencies such as Bitcoin, Lightcoin, Etherium and others to take advantage of lucrative investment opportunities and make quick money.Cryptocurrency trading mistakes to avoidWhile it's true that smart investments in cryptocurrencies can indeed yield impressively high returns in relatively short periods of time, it's also important to understand the volatility of cryptocurrency trading.By having the necessary knowledge and information in advance, you can hedge against potential losses and only make investments that bring you returns. Here are 3 major mistakes that almost every novice cryptocurrency trader makes and that you should try to avoid in order to make better investments. Mistake #1. Making emotionally motivated trading decisions Even though cryptocurrency trading involves risks, trading decisions are usually made strategically with a lot of market fundamentals, trends and signals in mind.With all the hype surrounding cryptocurrencies, people are often tempted to deviate from their strategies and make decisions based on emotion due to winner's syndrome, environmental pressure or similar biases.People may even start panic selling as soon as they see an unexpected negative trend in the market. While people like to believe that deviating from their strategy and making decisions based on emotion can help them minimise losses in a falling market, this is not entirely true.Even if things don't go as planned, it is best to review your strategy and develop a contingency plan instead of making decisions based on emotion. Using modern trading software and automation can help you minimise emotional biases in your trading strategy. Mistake #2. Ignoring risk management techniques Just like any other investment, diversifying your portfolio in cryptocurrency trading can go a long way in helping you mitigate risk. A good strategy to diversify your crypto portfolio is to trade in pairs. Popular cryptocurrency pairs include BTC/EUR, BTC/USD, BTC/BCH, BTC/ETH and BTC/GBP.Another very effective method of risk management is the use of a stop loss. This tool allows you to automatically liquidate your investment as soon as the value of your asset reaches a specified price. You can use stop-losses after carefully analyzing your risk tolerance and incorporate this method into your broader cryptocurrency trading strategy. Mistake #3. Using an unsuitable trading platform Buying and selling cryptocurrencies largely depends on the type of platform you use to make transactions and track price trends. Using the wrong cryptocurrency trading platforms can make it difficult to track and analyse market trends.This will deprive you of vital trading signals and information that can lead to a positive investment outcome. People are often inclined to use unsuitable platforms and end up making bad decisions.In order to trade cryptocurrencies such as Bitcoins in the most efficient and effective way, it is important that you choose a legitimate platform.Regardless of your expertise or experience, the platform should offer tools that allow anyone to engage in profitable cryptocurrency trading. Conclusions With the right information, knowledge and assistance, cryptocurrency trading can be seen as an incredibly effective tool for generating income and multiplying your start-up capital. If you manage to stick to best practices and avoid typical mistakes, positive results are almost guaranteed.
03.05.2021 IndexaCo Read
Stop Loss in forex
A Stop Loss is an exit order that is used to limit the amount of loss a trader can take on a trade if the trade goes against him. It also eliminates the worry that every trader inevitably faces when being in a losing trade without a plan. No trading system will make a profit on every trade all the time, and losing trades are natural. Successful risk management means minimising losses. A stop-loss can be an effective solution to this.If you decide to use a stop loss, it is important to find a good place for it. If the stop order is too close to the current price, there is a risk that price volatility will hit this order during a false move, and then go in the direction you expected, so you will lose money and earn nothing. If the stop order is too far away from the current price, the trader could be vulnerable to large losses if the market reverses against his expectations.Algorithm for choosing Stop Loss typesThere are many types of stop losses. Here's the algorithm for choosing what works for you:Step 1: Discretionary or system stop?The position of the stop loss can depend on whether you are a discretionary trader or a system trader. In discretionary trading, it is up to the trader to decide which trades to make each time. The trader places a stop order at a price at which he does not expect the market to trade according to his forecast. In doing so, he can take into account various factors that may vary from trade to trade.In system trading, trading decisions are made by the trading system. A trader either opens positions manually following the trading system signals, or the trading process is automatic. Here Stop Loss orders are placed according to the trading system's risk/profit and win/loss ratios.Step 2: Determine the size of stop loss.- Stop LossThe size of this stop loss depends on the trader's account size. The most common is 1% of the account per trade. For example, if your capital is $1,000, you can afford to lose $10 on, say, a EUR/USD trade. That's 100 pips per 0.01 lot (1 micro lot). The upper limit of such a stop is considered to be 5%. As you can see, this approach is not a logical answer to what is actually happening on the price chart.- Stop on the chartThe size of this stop depends on the technical analysis of the price action carried out by the trader. This is usually where a support level is determined and a stop loss is placed below it for a long position. Technically oriented traders like to combine these exit points with stop rules for charting stop orders. Such stops are often set at the highs/minimums of the fluctuations.- Volatility StopThe size of this stop depends on the amount of volatility in the market. If the volatility is high and the price fluctuates widely, a trader will need a larger stop to avoid the stop. In the case of lower volatility, a trader puts a smaller stop. Volatility can be measured using indicators such as Bollinger Bands.- Time StopsTime stops are based on a predetermined trade time. Imagine you are a day trader, trading only during a certain session and closing your positions before it ends. You can set a time limit, after which your position will be closed. You can do this with Expert Advisors (EA) or with trading robots.- Margin StopsThere is also one aggressive approach to forex trading that we do not recommend. Some traders take advantage of the fact that forex dealers can liquidate their clients' positions almost as soon as they activate the margin call. A trader may divide his capital into several equal portions and deposit only one portion into his account. He then chooses the size of the position and the potential margin call acts as a stop loss. Be forewarned that these trades are only appropriate with small amounts of money. Please note that this type of trading is intended only for a maximum of one open position at a time.Step 3: Static or trailing stop?The static stop retains its place once set. The trailing stop adjusts as the trade moves in the trader's favour to further reduce the risk of an error in the trade.For example, a trader has opened a long position in the EUR/USD at $1.3100, with a stop loss of 50 pips at $1.3050, and a take profit of 150 pips at $1.3200. No changes will be made to your order until a profit on your open position exceeds 50 pips. If the Euro rises 50 pips to $1.3150, a trader may adjust his stop order by 50 pips to $1.3100. When you move your stop loss to the entry level (as in this case), it becomes a break-even stop order: if price reverses and the trader's stop order triggers, he will not get any money, but he will also lose nothing. Every time the price moves 50 pips from the current stop loss in favor of the trader, the server sends an order to change the current stop loss level to within 50 pips of the current price. In other words, Trailing Stop automatically moves your Stop Loss order following the price.Trailing Stops are mainly used by traders who enjoy trading trends but do not have the ability to follow the price movement all the time.Trailing Stops in MT4To set an automatic trailing stop in MT4, right-click the order in your terminal window, select "Trailing Stop" and select the desired trailing stop size. Please note that the minimum level for the automatic trailing stop is 15 pips. It is important that the trailing stop loss is set on the client's trading platform and not on the server. If the trader closes the terminal or loses the internet connection, the trailing stop will be deactivated, but the stop loss set by the trailing stop will remain active.To deactivate the trailing stop, select "None" in the "Trailing Stop" submenu. If you want to disable trailing stops for all open positions and pending orders, select "Clear All" from the same menu.Step 4 - Waiting for trading resultsOnce the Stop Loss is set, do not increase it. Only move your stops in the direction of the trade (rolling stops). You have already made your decision. If the market went against you and your stop was hit, analyse your trade and see what you did wrong. Don't get too upset about the failure. What you need is to succeed in the next trade, so move on to the next opportunity.
02.05.2021 IndexaCo Read
Using the MACD indicator in forex trading
The moving average convergence/divergence indicator (MACD) is one of the best solutions to use when working in the financial markets. Learning how to implement the tool is crucial to a trader's success. We will examine three common MACD strategies.What is the MACD?This tool is one of the most commonly used in technical analysis. It is an impulse indicator that tracks the trend. That is, it determines whether the trend is upward or downward. Therefore, it can be used to provide trading signals and identify trading opportunities.How does the MACD work?The MACD uses three components in its work: two moving averages and a histogram. The two lines may look like ordinary moving averages (SMAs) but are in fact multi-level exponential moving averages (EMAs). The basic, slower line is the MACD line, while the faster line is the signal line.If two moving averages converge, they are said to be "converging", and if they move away from each other, they are "diverging". The difference between the two lines is represented on the histogram. If the MACD was trading above the nought line it would confirm an uptrend, below it the indicator would be used to confirm a downtrend.If the market price was found to be on an upward trend, making higher highs and lower lows, and breaking through key resistance levels - traders can open long positions. While traders can choose to go short if the asset is in a downtrend, which is characterised by lower highs as well as lower lows or breaks support levels.Three common MACD trading strategiesThere are a number of MACD strategies that can be used to find opportunities in the markets. Three of the most popular strategies include:CrossoversHistogram reversalZero crossesCrossoversThe MACD line together with the signal line can be used in much the same way as a stochastic oscillator, with the crossover between the two lines providing buy and sell signals. As with most strategies, a buy signal is given when the shorter, more reactive line - in this case, the MACD line - crosses the slower signal line. Conversely, when the MACD line crosses below the signal line, it gives a bearish sell signal.Because the crossover strategy is lagging in nature, it is based on waiting for movement before opening a position. The main problem the MACD has with weak market trends is that by the time the signal is generated, the price may have reached a reversal point. This would be considered as a "false signal". It is worth noting that strategies that use price action to confirm the signal are often seen as more reliable.Histogram reversalThe histogram is probably the most useful part, and the bars represent the difference between the MACD and the signal lines. When the market price is moving strongly in the direction, the histogram will increase in height, and when the histogram is contracting, it is a sign that the market is moving more slowly.This means that as the bars of the histogram move further away from zero, the two moving average lines move further away from each other. Once the initial expansion phase is over, a hump shape is likely to emerge - a signal that the moving averages are contracting again, which could be an early sign of an impending crossover.This is the leading strategy, unlike the lagging crossover strategy mentioned above. The reversal is based on the use of known trends as a basis for positioning, which means that the strategy can be executed before the market movement actually occurs.Zero crossesThe zero-cross strategy is based on either EMA crossing the zero line. If the MACD crosses the zero line from below, a new uptrend may occur, while a MACD cross from above is a signal that a new downtrend may start.This is often seen as the slowest signal of the three, so you will generally see fewer signals, but also fewer false reversals. The strategy is to buy - or close short - when the MACD crosses the zero line from below, and sell - or close long - when the MACD crosses the zero line from above.This method should be used with caution because its delayed nature means that fast, volatile markets will often generate signals released too late. However, as a solution to provide reversal signals for long wide moves, it can be very useful. When using a zero-crossing strategy, it is important to understand where to exit the market or make a stop.When is the best time to use the MACD?There is no such thing as the 'best' time to use the indicator, it will depend entirely on you, your personal preferences and trading plan. For some, there may not be a right time to apply it, as they do not take a technical approach to analysis or prefer to use many other indicators to identify price action.However, if you decide to use MACD, the best timing will depend on which of the above strategies you want to use. If you choose a lagging strategy, you will have to keep a close eye on the MACD in order to get signals as quickly as possible. But if you choose a leading strategy such as the bar chart, you could spend less time monitoring, as the signals should appear earlier.
01.05.2021 IndexaCo Read
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