rcanessa

I am Raúl Canessa, the founder of Forexdominion.com. As an experienced Forex trader, my passion for investing and algorithmic trading has shaped my professional journey. Over the years, I have dedicated myself to refining my skills in the financial markets, allowing me to share my knowledge and insights through my platform. I am committed to helping others understand the world of trading and develop effective strategies for success in this exciting field.

Reserve Currency – Definition and Concept

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A reserve currency is the one used as a means of payment in international transactions due to its confidence. In other words, investors expect their value to be maintained over time. Currently, the dollar is the currency that mainly meets these characteristics.

An important part of the international reserves of each country is denominated in some reserve currency. The bodies responsible for pursuing this objective are the central banks.

Reserve currencies also serve to set the prices of commodities such as oil, gold, and other raw materials. The same happens with financial costs and international transport.

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Efficient Market – What is it, Definition and Concept

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An efficient market is one in which the prices of the assets traded in it reflect at all times the information available on the market.

Financial asset prices react strongly to market information. When the information is released, the different market agents analyze it and use it to make decisions. So this information is incorporated into the price as it arrives.

Therefore, the more information on the market, the greater the efficiency of prices and the greater reflection of the fundamental value of assets. In this way, an efficient market can be considered as a market in which assets are quoted at their fair price and this price also truly reflects their real value at all times.

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Trading Strategy with the Non-Farm Payroll (NFP) Indicator

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The Non-farm payrolls (NFP) indicator is the report on total salaried workers in the United States except agricultural jobs, government workers, nonprofit workers, and private domestic workers. Today it is a key economic indicator for the United States.

The publication of the NFP report causes very wide movements in the Forex market, which are among the largest movements produced by the publication of economic news. This is why many analysts, investors, speculators, and investment funds try to anticipate the result of the NFP and the movement it will cause. Due to this great expectation before the publication of this economic indicator, the market can react with wide movements even when there is no deviation between the forecast and the final result of the NFP.

In this article, we are going to discuss some trading aspects related to this economic indicator, especially to avoid the exposure to excessive risks due to the high volatility that the release of the NFP can cause.

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The coronavirus crisis slows the world economy and collapses the stock markets

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Historical falls for the stock market due to the coronavirus crisis. The health crisis has been joined by an economic crisis. Governments have to decide which one they prefer to focus on. And they are hardly going to stop both at the same time.

Let’s focus first on the thermometers of the global economy. The S&P 500, which accounts for almost a third of the world market capitalization, this week had its fifth largest drop in the stock market (-11.5%) since the Second World War. The MSCI World has also fallen by -11.12%. This in economic terms represents losses of almost 10 trillion dollars in the accounts of investors, that is, the sum of the GDP of Germany, the United Kingdom, France and Spain. Not bad for a single week.

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Bull Trap and Bear Trap – Traps in the markets

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In this article, we are going to explain the most common traps in the markets, known as bull trap and bear trap, how we can avoid them and, above all, how we can take advantage of these market conditions. Pay attention, because this article is going to take you from the losers side and put you on the side of the smart traders.

The traps can be bullish or bearish. The traps for buyers are called bull traps and the traps for sellers are called bear traps. Generically, we sometimes refer to a trap as a swing trap.

First of all, we will look at how a market trap is formed. After all, it is simply a thing that is not what it seems to be. The price goes in one direction and we, as rebound hunters, wait for the right moment to open a new position in the opposite direction. However, it is a trap! Now that we are inside, the price continues with its previous movement, destroying our idea of making money.

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Know Sure Thing (KST) indicator for Metatrader 4

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In this article, we are going to present a modified indicator for Metatrader 4 which shows the technical indicator KST (Know Sure Thing) in a window below the main price chart and in any time frame. We include this indicator for free download at the end of the article.

Before explaining how works this indicator for MT4, let’s talk a little about the generalities of the KST.

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Internacional Trade & Trade Balance of USA

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US Trade Balance

General definition and importance

The “International Trade & Trade Balance” is an economic report that measures the difference between imports and exports of goods and services in countries like United States. Imports and exports are important components of accumulated economic activities. Furthermore, representing 14 and 12 percent of the gross domestic product in the United States, respectively. Normally, increases in exports are positive for corporate profits and also good for the stock market. Changes in the trade balance with particular countries may have implications in the monetary policy with respect to those countries for which this report is important for investors who are interested in diversifying their investments globally.

Valutrades – Regulated Forex Broker of UK

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Review of Valutrades

Valutrades – Forex Broker Review

Valutrades is a Forex and CFD broker founded in 2013 which has its headquarters located in the United Kingdom. It is an ECN/STP type broker, which means that it does not act as the counterpart in the transactions of its clients and offers tight and variable spreads, since it acts as an intermediary between its clients and other market participants, including large financial institutions such as banks (liquidity providers). In addition, as an ECN broker, Valutrades accepts all types of trading strategy, including scalping and HFT (High Frequency Trading).

The trading accounts of this broker use ECN technology to offer rapid execution of milliseconds against the best Bid / Ask prices. Valutrades servers are hosted in the Equinix NY4 data center. This is the largest data center for currency trading. This is the ideal location for servers to provide fast execution of orders and free VPS servers.

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