Author: rcanessa - Page 25

Economic recession – Definition and Concept

A recession is a decrease in economic activity over a period of time. Officially, a recession is considered to exist when the GDP variation rate is negative for two consecutive quarters. It is also known as a period of economic contraction.

The economic recession is the phase of the economic cycle in which economic activity decreases, consumption and investment decrease, and unemployment increases.

In the following chart, we can see an example of a recession, with two-quarters of negative growth. If the negative growth continued, it would be a long economic recession. However, if the negative growth were to occur for only one quarter, we could not officially consider that decrease as an economic recession.

The Best Forex Daytrading Strategies

by rcanessa

In this article, we present a complete collection of ideas to build daytrading strategies based exclusively on price action that can be useful to trade in Forex, although they can also be adapted to other markets. By the way, I have been told that these strategies were used on a trading desk of a well-known US investment bank. Although logically I have not been able to corroborate this, the truth is that these trading ideas are at the least original since they combine different patterns in an unusual way. Having said that, we will now study these strategies in detail.

Promotion of HotForex in Celebration of its 10th Anniversary

by rcanessa

The Forex and CFD broker HotForex (a regulated company) is celebrating its 10th anniversary in 2020. Because of this, it is offering a brand new promotion in which the broker will be awarding $2,000,000 in cash prizes to all its clients. These rewards can be withdrawn without any restrictions.

From now until the end of 2020, HotForex customers can earn a monthly bonus of up to $3,000 each month. The bonus is granted in the form of interest on the free margin of the account (account money not used in any trade) of up to 2%. The money obtained in this offer can be used for trading purposes or can be withdrawn by any of the methods accepted by the broker.

The great imbalances that the Coronavirus will leave in the economy

by rcanessa

Large macroeconomic imbalances in many economies make recovery difficult. Countries such as Spain or Italy foresee an exorbitant increase in their levels of public debt, with IMF forecasts that put the debt at 120% and 150%, respectively.

In recent weeks, the harsh global pandemic the economy is going through has put the world in check. A check that could be considered as conjunctural, but that could have devastating effects for certain economies. And the problem is that we are not talking about another crisis, but a crisis that, as indicated by the International Monetary Fund and as we indicated in an article a few days ago, is the largest economic contraction since the collapse of 1929; in short, one of the biggest contractions in our history.

As the growth forecasts are published, the data that is being projected on the different economies indicate how the pandemic has taken its toll on the European economies and these economic data are getting worse. Such is the aggravating circumstance that, while the Bank of Spain exceeded all published forecasts, with a forecast contraction of up to 13.5% for Spanish gross domestic product (GDP), a week later the Morgan Stanley bank presented forecasts that placed the contraction at 13%, being able to reach a contraction of 22.6% in the worst case.

What is a Blockchain?

by rcanessa

The present definition of blockchain is the one referring to the Bitcoin technology developed by Satoshi Nakamoto, in which the blockchain is an integral part of it; unlike the new term ‘blockchain’ introduced by different companies and authors to refer to Bitcoin technology as a whole. A blockchain, also known as a distributed ledger, is a distributed database that records … Read more

Frequency of Occurrence of Pullbacks in the Markets

by rcanessa

According to recent studies on a universe of tens of thousands of graphic patterns (27,000), the chance of a pullback occurring after a support breakout is approximately one in two.

Going into more precise details, these studies indicate that the probability of occurrence of a pullback is 57%. That is, in 57 out of every 100 support breakouts, the price will return to the broken support in the following 30 days (obviously, in 43% of cases, this return will not occur).

In addition, we can estimate that the price will drop during the 5 days after the breakout. Of course, all these data are averages, as you can guess. It does not mean that, after all the support breakouts, the market will drop just for 5 days.

Financial Options – Types and Example

by rcanessa

A financial option is a financial derivative that involves a contract to buy or sell an underlying asset, such as a stock, currency pair, commodity or other, which grants the buyer the right to buy or sell the agreed underlying asset at a future date previously agreed, depending on whether it is a call option or a put option.

The main characteristics of an option are indicated by its own name. The term ‘option’ refers precisely to the fact that the buyer of this financial derivative has the right (has the option) to execute the provisions of the contract. At the same time, the seller of an option is required to buy or sell (depending on the type of option) if the buyer exercises his right once the contract expires.

Affiliate Program Avapartner – Referral Program of Avatrade

by rcanessa

Review of Avapartner

Avapartner affiliate program was created by the Forex broker AvaTrade with the objective to promote their services and acquire new customers through affiliates that use various methods of promotion, all based on the Internet. This program promotes exclusively the broker AvaTrade as it is owned by this company. The registration in Avapartners is completely free and anyone can join without having to open a trading account with AvaTrade. The use of all promotional tools is also free as they can be used at the discretion of the affiliate as long as he/she follows the rules established by the company.

The IMF predicts the biggest economic contraction since the crash of 1929

by rcanessa

The International Monetary Fund (IMF) has released the update of its forecasts for the world economy and the effects caused by the Coronavirus. In ForexDominion we have analyzed the report published by the organization.

A few days ago we knew the forecasts on the world economy, which were published by the IMF. A highly anticipated publication, following the last one in Davos for the 50th anniversary of the World Economic Forum (WEF); including, yes, the effects of an economic and health crisis that, unlike the rest, was unprecedented. A downward revision in the forecasts, highly anticipated by analysts who, given what happened, cannot see clarity in the near future.

AvaProtect – Avatrade tool to protect your trades and control your risk

by rcanessa

The Forex and CFD broker Avatrade has announced the addition of a new tool called AvaProtect, which is a risk management mechanism that enables its clients to protect their transactions on more than 40 assets. At the moment, this application is only available on the AvaTradeGO mobile trading platform, designed by this company, and created specifically to trade in the … Read more

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