Perry Kaufman Adaptive Moving Average (KAMA)

Hello to all our Forexdominion.com followers, today we bring you an article where we explain in detail a moving average indicator called KAMA.

This indicator was developed by Perry Kaufman, and is an adaptive moving average designed to take into account the volatility or “market noise”. The KAMA moving average approaches prices when price fluctuations are relatively small and noise is low. In addition, the KAMA will move away when price swings widen and follow prices from a greater distance. This trend following indicator can be used to identify the general trend, market inflection points, and to filter price movements.

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New VPS Service of the Broker XM

The Forex broker XM (regulated by CySEC and FCA) now offers to its customers a VPS service known as XM MT4 VPS, which gives the trader the ability to significantly improve the executions of the manual trades and the Expert Advisors. The VPS service of XM is located near the company data center in London, which ensures that latency levels are kept to an absolute minimum, while fiber-optic connectivity provides extremely high data transfer rates.

Through this service, XM customers can enjoy an unparalleled execution without having to worry about other factors that may impair their ability to trade effectively such as Internet connection speed, computer failure, or power outages.

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Vortex indicator for Metatrader 4

In this article we present a version of the Vortex technical indicator developed for the Metatrader 4 trading platform, which can be downloaded and used at no cost. This indicator, although not as well known as other technical analysis tools such as MACD or RSI, can be a useful tool, especially if it is combined with other indicators. In fact, there are different trading systems that incorporate the Vortex and that we will describe later. For now, we will focus on providing a short introduction about this indicator and its trading signals and then we will talk specifically about the Vortex indicator for MT4 and its main features.

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Stock falls and dollar hikes following the Fed meeting

The Federal Reserve lowered interest rates by 0.25% for the first time since December 2008. But at the press conference following the meeting of the Federal Open Market Committee, Fed Chairman Jerome Powell said that this rate cut was a timely adjustment and not necessarily the beginning of a prolonged cycle of rate cuts.

Wall Street stocks fell sharply during Powell’s intervention because traders interpreted that there would be no further rate cuts this year. The Fed president cited the global economic slowdown, trade war and moderate inflation as reasons to reduce interest rates by 25 basis points.

Powell also spoke about Donald Trump’s political pressure on the central bank and said the rate cut was not the result of the president’s calls, who had requested a 50 basis point reduction a day before the Fed meeting.

However, it should be noted that not all FOMC officials agreed with the decision, Boston Fed President Eric Rosengren and Kansas Fed President Esther George voted to keep interest rates without changes

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The Most Popular Forex Strategies

Popular Forex trading strategies

Do you want to trade in the forex market but you still don’t know how to do it? Do you have doubts about doing short or long term operations? Don’t you know what kind of analysis to use? If you are a trader who is starting in the exciting world of Forex and doubts assail you with any of these questions, then we present a few types of strategies, the most popular in the market, so you can decide which one suits better to your needs.

If, later, you decide to train in more depth in any of these trading methodologies, you can always find more information here (see article on trading systems) or in the different publications specialized in trading strategies that we have on this website.

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Monetary policy and geopolitical tensions in the spotlight of investors

Equity markets start the week lower after expectations of an aggressive interest rate cut by the US Federal Reserve and rising tensions in the Middle East fade.

At the end of last week comments from New York Fed President John Williams, noting that FOMC members could not wait for the economic slowdown to hit them to introduce monetary stimulus, raised expectations that the central bank would lower the interest rates to 50 basis points at the meeting from July 30 to July 31.

But Wall Street stock markets closed lower last Friday, after the Fed contradicted Williams’ comments saying he was referring to a possible 25 basis point cut, not 50 points. The main US indices closed with falls of 0.25% in the Dow Jones, 0.62% in the S&P 500 and 0.74% in the Nasdaq.

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What loss limit can I use in my trades?

 

Again, as long as I speak of losses, I must start this article by saying that  is completely impossible to avoid losses. Sooner or later they come to all traders. A good trader simply accept them consciously, which also involves applying systematic rules to keep the losses well controlled.

This article will not discuss the position of the stop loss, it will focus on the loss limit on volume that should be applied in all trades. That is, the maximum amount of money that would be lost if the operation goes wrong. Knowing this amount is essential to calculate the size of the trade.

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Market Makers Brokers – Definition and Features

Market makers brokers

What is a broker market maker?

The Market Makers are brokers in which the buy or sell transactions of financial instruments (currencies, stocks, indices, commodities, crypto, …) that their client’s request are not made directly in the market but at the broker’s trading desk of the broker itself (therefore the Market Makers are brokers with trading desk and that’s why they are also called DD or Dealing Desk). In other words, the broker creates the market for its clients and, in many cases, acts as the counterpart in the client’s transactions.

Market makers brokers create an internal market for their clients and allow them to buy or sell at any time without having to wait for a transaction in the opposite direction to make the trade. Market Makers are always prepared to offer a buy price (bid) and a sale price (ask) for each financial instrument they offer, so the trader can execute his operations at any time and with the volume it deems convenient.

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