January 2017

Price action is a common term used in trading to refer to the analysis of the movements made by the price of a particular asset or financial instrument in the market.
Although it is included in the technical analysis, the analysis of price action does not use any technical indicator and the forecast of the future price trend is made based on the interpretation given by the trader of the price movement and not by the value shown by an indicator.

 
Trade360 Partners is an interesting Forex affiliate program created by the broker Trade360, a company regulated by CySEC of Cyprus that is specialized in social trading, especially in what is known as CrowdTrading.

Through this affiliate program, the affiliate can earn money by promoting the services of this broker and referring clients that open a trading account with the company and deposit funds. Thanks to the large number of marketing tools offered by Trade360 Partners (including banners, links and other), its commission plans and the good reputation that this broker is acquiring, this program is an excellent option to monetize websites, forums or blogs with topics related to financial markets and in particular with the Forex.

The Parabolic system price/time is another idea that introduced the famous Welles Wilder in his book "New Concepts in Technical Trading Systems". This system was developed as a high and reversal strategy, which means that a trader using this approach will always have either a buy position or a short position in the market. Here we must remember that when the Parabolic SAR generates a buy signal, for example, a series of bullish points  appears below the current price action. As the market moves higher, the indicator points also rise, first slowly and then faster.

When the trend is stopped or begins to reverse, points and prices intersect, in which case a long position is closed and a new short position is open. For this system, we want to determine whether the addition of a volume requirement for Parabolic SAR entry signals can improve the performance of these signals. For example, the buy signal for this system is when a high in price reaches a point of Parabolic SAR above the market with a volumen higher than the simple moving average of 5 periods (five bars) of volume. Both conditions must be met in the same bar.


The CFD broker Plus500, one of the most important in the sector, and regulated by important bodies such as FCA (UK) and CySEC (Cyprus), is offering to all its new customers a free $25 bonus that does not require a prior deposit and can be withdrawn along with the profits it produces. To obtain the bonus, the trader only has to open a new trading account with Plus500 with real data, validate the number of his mobile phone and request the bonus (the procedure will be described below). 

Through this promotion, new clients can evaluate the services of this broker and earn money by trading with real funds in the market.  

The broker Trade360, which specializes in Forex and CFD trading and is regulated by CySEC of Cyprus, is offereing its new customers a free bonus of $50 without prior deposit. The only requirement of this promotion is that the new customer verify their mobile phone after opening the account. Through this offer, the trader can evaluate the services of this company and make money trading inthe markets without investing their own money. 

This broker was founded in 2015 and its service is based on a form of social trading known as crowdtrading

Review of the Forex broker Trade360

Trade360-Forex Broker Review

Trade360 is a regulated Forex and CFD broker whose headquarters are located in the Republic of Cyprus. This company began operations in 2013 and gradually has expanded its services, thanks to the quality and uniqueness of their services that differentiate this broker from many of its competitors in the sector. 

In this sense Trade360 focuses on providing market access in a simply form and without complications to their clients, even for inexperienced traders. Added to this is that this broker also operates as a platform for social trading based on the concept of crowdtrading, which we will explain later, where traders can make transactions based on the overall market sentiment of all the thousands of customers of this company. We must also add that Trae360 offers attractive promotions for customers on a regular basis.

Type of broker 

Trade360  is a NDD/STP Forex and CFD broker.

Regulation 

This broker is regulated by CySEC (Cyprus Securities and Exchange Commission) of Cyprus with the license number 202/13. Thus, Trade360 meets the strict regulations on financial matters of the MiFID (Markets in Financial Instruments Directive) in Europe, which are mandatory for any company that provides such services in any country belonging to the European Union.

Country of origin

Currently the main offices of the company are located in Cyprus.

Trading Instruments 

Currently, this broker offers its customers the ability to operate with the following financial instruments:
  • Forex: 48 currency pairs in the Forex spot market, including the most important and traded as EUR/USD, USD/JPY, GBP/USD and USD/CHF, currency crosses, minor currency pairs and multiple exotic currency pairs such as the USD/RON, USD/TRY and EUR/INR among others. As for the trading conditions, Trade360 offers fixed and very low spreads from 1.8 pips for EUR/USD, for example. It also has a maximum leverage of 1:200 and a minimum transaction size of 0.01 lots.
  • Precious metals: Gold and silver in the spot market, two of the most important and traded commodities on the markets.
  • Bitcoin: Trade360 customers can speculate on the value of Bitcoin in relation to the US dollar (BTC/USD). For these contracts, leverage offered is 1:4.
  • Contracts For Difference - CFD based on the following underlying instruments: 
    • Commodities: 6 futures contracts of the main commodities in the markets, such as crude oil, natural gas and corn. 
    • Stocks: 122 of the most important stocks of the major markets in the US and Europe, including Google, Boieng, Coca Cola, Facebook, Bayer, Barclays, Lloyds and BMW among others.
    • Stock indices: Several of the major stock market indexes, including the S&P 500, Dow Jones, Nasdaq 100, DJ30 and others. 
*The CFD trading conditions depend on the underlying asset of the contract and the current market conditions.

Trading Accounts 

This broker offers a unique type of trading account for all its clients, be they professionals traders or beginners with little or no experience in the market. However, through this real account the client has access to all services developed by the company, including:
  • An online trading platform that requires no download or installation, which has a simple and user friendly  interface.
  • All instruments and assets (markets) that Trade360 offers for trading purposes.
  • All crowdtrading features and tools that allow the trader to monitor trading trends of other traders operating with this broker.
  •  Customer Support.
  •  Applications for mobile devices.
  •  Regular promotions for its customers.
  To open a real account with Trade360 the minimum deposit required is $25.

Crowdtrading services of Trade360

CrowdTrading is one of the unique features of Trade360. This trading tool allows traders support their trading decisions not only on technical analysis and news, but also in some additional factors, including market sentiment.It is a process through which traders can study, follow and copy the transactions of other members in a social trading platform. Traders use this method to make decisions about their own transactions, using information provided by transactions of other successful traders. 

The CrowdTrading shows how real traders on the whoe have decided to tradee in a specific instrument, such as a currency pair or a stock, for example. Basically it shows the percentage of all traders who have decided to buy and the percentage of traders who have decided to sell, in other words the market sentiment. In addition, the platform shows the percentage of traders buying and selling for each country of origin as well traders with the better performance who are registered with Trade360. 

In addition, this tool allows the trader to see forecasts of market reactions to future events. On the other hand, if the event has passed, CrowdTrading shows whether the prediction was correct or not, so that the trader can see whether to rely on other traders or otherwise trade on their own. This feature can be useful for both types of traders, trend followers and traders with strategies based on market reversal points.

Demo Account

Trade360 customers have the option to open a demo account with no time limit, which allows the traders to practice their trading strategies and evaluate the company services using a virtual amount of up to $10000.

Trading Platforms

Trade360 offers an online trading platform (web-based), which requires no download or installation and is compatible with all major browsers (Google Chrome, Firefox, Internet Explorer and others). This application can be accessed from anywhere with an Internet connection, which gives the trader more flexibility in their trades in the market. The characteristics of the platform of Trade360 are:
  • It is a platform designed by the company, which means that Trade360 is not using external providers like MT4 brokers. 
  • It is a web application that requires no download or installation. 
  • It has a simple and user friendly interface, even for novice traders. 
  • It provides access to all trading instruments (markets) offered by this broker to its customers.
  •  The trader have access to updated market prices and simple price charts. 
  • Updated market news. 
  • It is designed with several features for positions management and various types of orders, which enable the trader to manage their transactions in the market. 
  • It is fully integrated with all crowdtrading services and functions of Trade360, which means that at the same time is a social trading platform. Thus, the trader trader can also base their trades in the general market sentiment, in addition to traditional approaches such as technical analysis. 
  • This platform does not have the variety of technical analysis tools offered by other platforms such as MT4, so it is not suitable for traders who base their strategies on technical analysis. 
  • It does not allow the use of automated trading systems as on other platforms, like Metatrader 4 for example.
  • All data is also encrypted using the latest 128-bit technology for security purposes.
 -Platforms for mobile devices: Trade360 offers a version of its trading platform designed for web devices. This application provides access to the trading account and allows to trade in all markets offered by this broker from smartphones (iOS and Android) and other similar devices. It has the same basic functions of the regular trading platform of the company. 

Payment Options

The clients of Trade360 can deposit and withdraw funds through the following payment options: bank transfer, credit cards (major credit cards as VISA and MasterCard), Skrill and Neteller.

Main Advantages of Trade360

  • It is a European broker properly regulated by entities such as CySEC of Cyprus.
  • This broker regularly offers various promotions to new and existing customers. These promotions include bonuses for depositing funds. 
  • Customers have access to a variety of trading instruments (markets) through a single trading platform and an account. 
  • An online trading platform that requires no download or installation and offers a simple and easy to use interface. 
  • Low spreads for all trading instruments. 
  • Guides in English and Spanish about the Forex market and how to trade  more efficiently,  which are focused mainly on beginners traders. 
  • Trae360 has a specialized service called CrowdTrading, through which it is possible to check the general market sentiment of clients who are trading with this company regarding a specific instrument. In this way, you can check the percentage of traders who have an open long or short position in a currency pair like EUR/USD for example, at a given moment. Also, this feature allows to observe what is the trend of the main traders of Trade360, ie those with more experience and market knowledge. 
  • Trade360 offers the possibility of obtaining additional revenue by promoting its services as a broker through an affiliate program called Trade360 Partners.

Trade 360 Main Promotions

Trade360 offers regular bonuses and promotions for both regular and new customers with a real account. The current promotions are the following:
  • A free welcome bonus of $50 for new clients. No prior deposit is required, customers only need to validate their mobile phone.
  • A cash rebates promotion through which the client can earn up to 10 USD for each round traded lot.
  • A practice bonus up to $60 to learn to trade without risk.

Other categories of this broker

  • Gold Broker.
  • Silver Broker.
  • CFD Broker.
Company
Trade360 Ltd
Minimum account size
$100 for all trading accounts
Minimum lot size
0.01 lot.
Maximum Leverage
1:1 to 1:200.
Spreads (Forex)
This broker offers fixed and low spreads from 1.8 pips for the main currency pairs such as EUR/USD.
Open a demo account
Open an account
 





In this article we will continue with the main ideas developed about the relationship between trading and psychology that we discussed in the article "Trading Psychology". First at all in that article we discuss the fundamental role that psychology plays in the performance of a trader. Among other aspects, we explained that in most cases the traders loss money due to their fault and because they are not prepared psychologically to face the market environment.

A loser trader needs to admit that he cannot control their losses. Mainly, he has to admit that he have a psychological problem related with the losses and that problem is destroying him as a trader. The trader must fight to speculate without losses, day after day and due to the market conditions most of them think that is impossible. However, we must keep in mind that even the best traders lose sometimes. Nobody and I mean nobody wins all the time. That is a fact. For that reason we must expect some losses sometimes, that is inevitable. If we loss in one trade is not the end of the world at least we do not know how to control that loss.

Psycology applied to trading

Why psychology in trading is so important?

Trading is a very hard game. A trader who wants to succeed must take very seriously what he is doing. You can not afford to be naive or to trade for hidden psychological reasons. Unfortunately, the trading attracts impulsive people, players and those who think the world owes them something. If you practice trading for the excitement it produces, it is possible that you may perform many trades with little chance of sucess or accept unnecessary risks. The market does not forgive and the emotional trading always carries losses.

The feelings have an immediate impact on the trading account. May be you have a brilliant trading system, but if you are frightened, arrogant or upset is almost certain that your account will suffer. When you realize that the thirst for gambling is gaining or fear clouds your mind, you must stop trading. Your success or failure as a trader depends on controlling your emotions.


pips and lots in Forex trading

What is a pip?

A pip is defined as the minimum possible change in the value of a currency pair. In this case the number of pips or points measures the difference between the entry price and exit price in any Forex trading. For example if the GBP / USD moves from 1.6225 to 1.6250, that is a rise of 25 pips. You can define a pip as the last decimal in the price. It is through the pips that are calculated gains or losses in one trade. As each currency has its own value, it is necessary to calculate the value of a pip for each currency in particular.

For example, in pairs where the U.S. dollar (USD) is the base currency, such as the USD/JPY, the calculation of the pip value would be:

If we have that the value of the USD/JPY is 90.80 (it must be noted that for this pair we use only two decimal places while other currency pairs use up to four).

- For this currency pair, 1 pip is equivalent to 0.01, which means that if the currency pair value is 90.80, the pip value would be given as follows:

 Pip value = 0.01 / quote = 0.01 / 90.80 = 0.0001101

It might seem that the value is almost nil, but the reality is that this is related to the lot size and the leverage as shown below:


Wow Partners is an affiliate program property of the binary options broker Finmax, and its objetive is the promotion of the company services and the acquisition of new customers through affiliates, who have many advertising tools based on Internet at their disposal, designed by the program itself. Thanks to these promotional resources and the excellent payment plans, Wow Partners is a good option to monetize websites or blogs whose topic is related with binary options and/or financial markets in general. It also has the advantage of promoting a broker with years of experience in the sector.

Day trading strategies for Forex

When Forex traders talk about intraday trading, they are referring to buying and selling currencies (currency pairs) on the same day. Day traders often look small price movements and use large amounts of leveraged capital to make money with these little movements. In general, they look for markets with high liquidity - where large volumes of trades and sufficient market participants ensure that deals are closed instantly. Liquid markets (like the main currency pairs) also offer tight spreads - which means that the transactions are more profitable - and adjusted slippages, ensuring that trades are closed in the quoted price.

However, there are actually a number of daily trading strategies - including trading against the trend, daily pivots, momentum etc. Each of these similar approaches is used to identify an entry point, but the exit strategy is different in each case.

Review of the Binary Options Broker Finmax

Finmax is a bróker specialized in binary options trading which offers the possibility to trade with various types of options (including High/Low, Above/Below and One Touch) based on a wide range of financial assets like stocks, indices, commodities and curency pairs (Forex). It offers a web based platform with different trading features including prince charts, analytical tools and other.
This broker offers a social trading application which the increases trading opportunities for customers, including beginner traders. Also it offers a signals service.

The Parabolic SAR, more commonly called PSAR, is a technical indicator whose main objective is to indicate the possible change of trend. SAR is the acronym for Stop And Reversal, because it is very usual to use the points determined by this indicator as possible points of exit, ie, its most common use is to determine points where it is possible that the current trend ends.

 This indicator was published by Welles Wilder. It can be use as a trailing stop loss to stay within a parabolic curve during a strong trend. The formula used to calculate the Parabolic SAR is the following:

-SARn+1 = SARn + (EP – SARn)

The SAR is normally represented on a trading chart by a series of dots. It is the only indicator that is generally depict in this manner. Therefore, it provides several advantages to the traders in their market analysis. 

The use of Parabolic SAR is really simple. If you see the indicator dots under the bars/candles, or in other words, if the price is higher than the value of the PSAR, the market is in a bullish period. And, conversely, if you see the indicator dots over the bars/candles of the chart, that is an indication that the market is in a downtrend. 

The best performance of this indicator as a trend indicator, is in markets with large trend movements, either bearish or bullish. In markets where the trend is lateral or in a range (a market without a clear trend), the Parabolic Sar does not have a very good performance as an indicator of trend so it can give false signals.

In summary: 
  • If the price crosses the PSAR this can be an indicative of the end of a trend or a temporary consolidation. 
  • If the PSAR dots are placed under the bars/candles, the market is decidedly bullish, however, if the dots are placed over the bars/candles that is a sign that the market is in a bearish period. 


What is a Gap and Trap? 

 A "Gap and Trap" is a price formation that can be observed in a individual stock, a market index, a currency pair, futures contract or other instrument or asset traded in financial markets.

The "Gap and Trap" occurs when there is an upward gap between one trading session and another, and investors begin to buy in the first minutes of the new session, when the price suddenly changes direction and begins to fall, trapping traders who bought shortly after the opening. Hence comes the name of the event, as "Gap" is the space between the closing price of the previous session and the opening price of the current session and "Trap" is referring to traders (buyers) who get caught in the market. 

Much has been said about the broker 4XP (Forexplace) and what happened with this company and its customers. Certainly it is a clear example of the care that must be taken when choosing a broker and put our money in their accounts. Previously we had 4XP on our list of Forex brokers and we promoted its services but after seeing the damage it was causing to customers around the world we decided to remove all related information. 

 Although Forexplace remained operating for years, almost from the beginning showed a low level of transparency and aggressive marketing practices. Plus it was not installed in any country with strict controls on financial services, so it is logical to assume that it had no real control, at least none important. We include an update with an overview of what happened with 4XP, so that the readers comes to understand that it is important to analyze carefully where they are placing their money before facing problems. 


Review of the Binary Options Boss Capital

Boss Capital is a broker founded in 2014 which offers the possibility to trade in the market with various types of options based on a lot of underlying assets, including currency pairs (Forex), commodities, indices and stocks from various stock markets. Like other companies in the sector, Boss Capital offers a web based trading platform designed with many features for the trader.

Every time we trade in the Forex market, all positions must be closed within two business days. Despite this, every trader has the option to renew all his open positions easily without the need for physical delivery of the foreign exchange contracts with which he is negotiating.

For example, if a trader buys $10,000 on Monday is in the obligation to make delivery of those $10,000 no later than Wednesday of the same week, unless he want to renew the position, which is called Rollover. Currently, most Forex brokers include among their services to their customers the option of renewing their open positions automatically (the rollover is credited or debited automatically if the client does not close their positions before a certain hour) or manually, which is also known as tom/next swaps a trade for the next day of the position´s settlement.

Thus, rollovers or swaps involve the application of a credit or debit in the operator's trading account, which is based on the positions that remain open in the market at precisely 17:00 pm EST and differentials in interest rates between the currencies that make up the pairs with which we are trading. In this case, if we have an open position in which we proceeded to sell the currency that has the highest interest rate, our trading account will be debited (the account will be charged with the difference in the interest rate applied on the total volume of the position).  But if in that position the same currency was bought, the account will be credited by the broker (the money deposited in the account is equal to the interest rate differential applied to the size of the position).

  

What is an overnight position?

These are open positions in the Forex market which are not closed at the end of the trading day in which they were opened. In the stock market an overnight position is considered at risk because it is common for as long as the exchange is closed (after the trading session) that some events may occur which can negatively impact the price of the stock traded.

In the Forex market, which is an international financial market that operates continuously 24 hours, it has been set the 17:00 EST (00:00 UTC) as the final hour of the trading day. At this time, any position that is still open is considered an overnight position. This hour is strict. If you open a position at 23:59:59 UTC and close this same position at 00:00:01 UTC, it will be considered an overnight position.

Overnight positions are subject to rollover. At the end of the trading day, ie at 00:00 UTC, the interest generated by each overnight position will be deducted or credited to the trading account. This interest is the difference between the interest rates of each currency in the pair in which is based overnight position. This difference in interest rates is called rollover and can be both in favor of the trader (interest is deducted from the account) and against the trader (interest is credited to the account ).

The rollover is the basis of the carry trade and is calculated as the difference between the interest rate of the currency we are buying and the interest rate of the currency we are selling (interest rate on the purchased currency - interest rate of the currency sold). This difference is credited or deducted from the account of the trader automatically at 00:00 UTC.

Example of an overnight position

A trader has a short position in the currency pair USD/CAD which means that he is selling the U.S. dollar and buying the Canadian dollar. The trader keeps this position open after 00:00 UTC. For this reason, it is an overnight position. If the interest rate of the Canadian dollar is 3% and the interest rate of the U.S. dollar is 2.5%, the rollver will be 0.5%. Therefore, the trader will receive in his account 0.5% of the size of the position.




The company Plus500, a broker from UK specializing in Contracts For Difference based on multiple assets like stocks, indices, currencies, commodities and others, has received an additional license in the European Union from CySEC (Cyprus Securities and Exchange Commission) of Cyprus,  which adds to the license that the company has with the FCA of UK. This increases the opportunities for customers of the broker and increases their confidence, because now Plus500 has more control over their operations and services as a broker.

Plus500, through its subsidiary Plus500CY has received authorization from CySEC to operate as a regulated investment firm. Now the company extends its coverage in Europe through the new licensee, and is set as the second most popular broker in the sector in this region.

500Affiliates Review

500Affiliates is a Forex affiliate program created by the Forex broker Plus500 as a strategy to gain new customers through affiliates who promote the company using different marketing tools that are offered by the same program.

This interesting Forex affiliate program offers two payment plans for its affiliates: CPA and a variable Revenue Share. In the case of Revenue Share, the payment amount is increased depending on the number of clients referred by the affiliate that open a trading account with Plus500 and deposit funds in it. In this way, at the beginning the affiliate starts earning a CPA of $200 per client and a Revenue Share of 15% of profits obtained by the broker with each referred trader. Over time, as the affiliate improve their marketing strategies and refer more clients, the CPA can increase to a maximum of $350 per customer and the Revenue Share to a maximum of 25% for each referred trader.

The affiliation to this affiliate program is completely free as the use of the marketing tools it offers to its affiliates. In fact, the affiliate does not required to have a trading account with Plus500. The various promotional tools can be used according to the judgment and discretion of the affiliates, provided they do not violate any regulations of the company, including those relating to spam for example.

review of Plus500 Broker

Plus500-Broker Review

Plus500 is a regulated CFD provider from United Kingdom that offers a lot of instruments to trade to its clients besides Forex, like commodities and Contracts For Difference based in stocks, Forex, indices, ETFs and other financial assets. In 2013, this company was included in the London Stock Exchange (LSE), which means that the company shares can be bought and sold in the stock market.

 
There are several ways of representing the MACD. Due to its popularity, I will dedicate the article to the representation of MACD on Metatrader platform.

The Moving Average Convergence Divergence or MACD, is one of the most widely known and used indicators in technical analysis. It is used both to indicate the market trend and the momentum of a movement. In summary, the MACD is an oscillator-type indicator that shows the distance between a fast exponential moving average (EMA) and a slow exponential moving average. Or what is the same, it shows the convergence / divergence of two exponential moving averages.
The formula to calculate the MACD is the following:
  • MACD = EMA(fast) - EMA(slow)

Introduction

The Sky System is a trading system based in the strategy created by Scott Lowry (see the Lowry System), an American psychologist and trader that regularly speculate in the Futures market. Basically, this trading technique is based on the intersection of three exponential moving averages as shown in the image:



In the same way as happens with other similar trading strategies based on moving averages, in markets with low volatility and without a defined trend, the Skydive System often produce  false signals. For that reason we can include a filter based in indicators like the MACD or the Williams %R.
This is a simple trading technique based in moving average crosses. It is based in the famous trading system developed by Scott Lowry, so is basically a trend follower strategy. For that reason is no recommended in markets that are moving in a range without a clear trend.
This strategy can be used in intraday trading, medium term trading and long term trading as it can take advantage of the different trends in the market.

Instruments

This trading technique can be used to trade with any instrument.

Indicators

  • A candlestick/bar chart in  the time frame in which the investor trades normally.
  • An EMA (Exponential Moving Average) of 4 periods.
  • An EMA of 18 periods.
  • An EMA of 40 periods.
  • We can use indicators such as the MACD and other as a filter to avoid opening positions based on false trading signals.

Trading System Rules

  • Wait until the three moving average cross each other in one direction or another. Once the crossover of moving average is produced, the trader should open a position in the market in the same direction of the trend. That is, a long position for a bull market and a short position for a bear market.
  • The ideal crossover is when the three moving averages cross at one point (or nearly at the same point) at the same time. It is a very strong signal, especially in bear markets. However, the other crosses can be used as trading signals if they occur in the same direction. In these cases, the trader should be careful about when and where to open a position after the moving averages crosses each other. This could be a bit subjective.
  • Once the moving averages crossover occurs in one direction, an important recommendation is to wait until the second or third candle to open a position in order to confirm the trend change. This is because in the moving average crosses not always occurs a trend change, so the trader must be careful with the false signals.
  • Stop loss: The stop loss can be placed below (above) the low (high) of the previous candle when we open a long (short) position after the cross of moving averages. Also, the trader can stablish a stop loss depending of the time frame in which he is conducting his trades in the market
  • Take Profit: The trader can close the position and take profits when the price crosses the EMA of 40 periods in the opposite direction of the trade. In this case, this is the exit point. Also, the trader can close the position near an important support or resistance to protect the earnings.

Additional Notes On The Trading System

  • This is not a mechanized system, therefore the trader is exposed to risks and mistakes if he is not very familiar with it.
  • The entries are easier than the exits, so the trader must establish a take profit and a stop loss to protect the earnings and reduce the risk.
  • If the EMA 18 and the EMA 40 are parallel, this is a sign of an stable trend, so the trader should continue in the market.
  • Is important to practice this trading strategy in a demo account, because the entry points after the crosses can be subjetive so the trader must learn when to enter the market more effectively
  • As we mention at the beginning, this trading system is a trend follower, therefore it is more useful in markets with a high volatility and defined trends. For that reason, we can use indicators such as the MACD and the Williams %R  for example, as a filter of the trading signals. Remember that in a trading range, this trading strategy is ineffective. Therefore, this filter can help us avoid false trading signals.


Chart patterns known as harmonic patterns are undoubtedly one of the classic patterns which have been studied by many traders throughout their training within technical analysis. By mastering these types of price patterns, the use of this type of technique can provide early entries with a minimum of risk very near to price levels where there are trend changes. Harmonic patterns can be observed in any market.

For the short term, day traders can use this type of pattern in an effective way to buy and sell when the price touches an area of daily highs or lows. Gartley, the discover of this patterns, stated in his work that to buy or sell properly within a pattern of the type "AB = CD" (the best known among us) the market must be on a strongly established trend.

Capital Index-Broker Review

Capital Index is a regulated Forex and CFD broker from United Kingdom (is regulated by the FCA) that offers a lot of services and markets to trade from Forex to financial spread betting. It is an ECN/STP broker with multiple services for its clients.

It is a company that provides financial services to both novice traders with little initial capital and market experience as professional traders with greater trading capital and experience. Unlike other brokers, the initial deposit required is quite low.

Capital Index provides a ECN/STP business model, in which customer orders are passed directly to the broker liquidity providers. In other words, the execution of trades is performed without a dealing desk (Non Dealing Desk), so that the trader enjoys fast executions, low and variable spreads whose value depends on market conditions. This allows the customer to use all kinds of trading strategies, including those that are based on scalping.

Technical Analysis Indicator Williams %R is an oscillator, for which it works better in lateral trending markets that in those with a strong trend. Basically what it does is measure how close to the maximum or minimum of a certain period of time the prices have closed during the last trading session or during any other time frame chosen by the trader. Remember that like other indicators, it can be used to analyze different periods of time from few minutes to hours, days, weeks, etc.. It was developed by  Larry Williams.

To apply this indicator the trader must select the time period, which is usually 14 periods (but that depends of the trader´s needs). In this case 14 is one of the most common value of this parameter but it  be changed if the trader believes that he will have better results with other values. If the trader is analyzing the market development over a period of 1 or more days, the Williams% R indicates if the closing price of the last session is close or not of the maximum or the minimum of the last 14 sessions.

The ADX is an oscillator-type technical indicator that fluctuates between 0 and 100 and whose value is based on the true range of movement (TR, true range). The ADX was developed by Welles Wilder in order to obtain information about the strength of the current trend and determine if the market is in a clear trend or in a range. Additionally, the ADX also serves to inform the trader about the prevailing trend of the market through the positive/negative movement indicators (+ DI and -DI).

The ADX is the abbreviation of the name Average Directional Index. When this indicator is applied to a chart we can see three lines:
  • The line + DI (Positive Directional Indicator).
  • the line -DI (Negative Directional Indicator).
  • The ADX line.

Review of HighLow Broker

Review of the Binary Options Broker HighLow

HighLow is a regulated binary options broker (ASIC of Australia) founded in 2013 with thousands of clients around the world. This company offers the possibility to trade with various types of options based on many underlying assets including currency pairs (Forex), commodities, stock indices and stocks of various markets. 

This broker has many interesting features such as trading education resources, different extra services for the client and regular promotions (mainly cash bonuses).

Moving Averages – A Renowned Tool Trading

These days, several tools and strategies are in use by Forex traders in order to make more profit. If a beginner trader is trying to enhance the profit margin in the Forex market and other markets too, then he should consider these tools and strategies. One of the most important of these tools are the Moving Averages, which currently play an important role for many traders as a common indicator to analyze the market. However, this is a tool that needs to be used correctly so that more profit can be generated as the trading signals could be safer. In fact, many traders really don’t know how to use moving averages for better profit and they lose money at the end. The utility of this indicator is that it can help the trader to determine the general trend direction for a specific period of time and also possible changes in the current market trends.

As its name suggests, moving averages are nothing more than the average price of an asset in recent periods. For example a 20 day moving average would be the average of the closing prices over the last 20 days. As the indicator is calculated every day, the moving average of today includes the current closing price and the previuos 19 closing prices, and at the same time, removes all other data (for this reason, is said to be a moving average). Basically, the moving average, then, is not nothing but an average of prices that is adjusted (or moved) every day.

As an average price, the moving average helps to reduce the noise or short-term volatility in price movements, and thus allows us to better assess the quality and direction of a trend.

This is a trading system developed by Vegas to trade only in 1 hour price charts. Basically this trading technique is to open three equal positions (if the trading platform permits the trader can also open a position divided into three parts which can be closed independently). Another option is to divide the capital invested in the trade according to percentages, for example the first position corresponds to 50%, the second position to 25% and the third position to 25%. Each trader can decide how to work with each position.

It can be used in many markets, including Forex (any currency pair), precious metals (gold and silver), indices and other

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