Author: rcanessa - Page 47

Relative Strength Index (RSI) Indicator

The Relative Strength Index (RSI) oscillator is a technical analysis tool that is used to measure the strength and momentum of a financial asset, such as a stock or a currency pair. It was developed by J. Welles Wilder Jr. in 1978 and is widely used by traders and investors. It is one of the most popular and helpful oscillators used in technical analysis. Their values are obtained by comparing the gains against the losses of previous sessions (14 is the period recommended by Wilder).

The RSI oscillator ranges from 0 to 100, with readings above 70 indicating an overbought condition and readings below 30 indicating an oversold condition. Traders and investors use these levels to identify potential buying or selling opportunities.

The RSI oscillator is often used in conjunction with other technical analysis tools, such as moving averages and trend lines, to help confirm signals and identify potential trading opportunities.

History of the RSI oscillator

The Relative Strength Index (RSI) was developed by J. Welles Wilder Jr. and first introduced in his book “New Concepts in Technical Trading Systems” in 1978. Wilder was a mechanical engineer and trader who became interested in the stock market and technical analysis in the 1950s. He went on to develop a number of technical indicators, including the Average True Range (ATR) and the Parabolic SAR.

The original RSI formula used a 14-day period to calculate the average gains and losses. Wilder recommended using the RSI in conjunction with other technical analysis tools, such as trend lines and moving averages, to confirm signals and identify potential trading opportunities.

Since its introduction, the RSI has become one of the most widely used and popular technical indicators. It has been incorporated into many trading platforms and is used by traders and investors around the world to help identify potential buy and sell signals. Despite its popularity, the RSI, like all technical indicators, is not infallible and should be used in conjunction with other tools and analysis to make informed trading decisions.

Binary Options Trading Platform of Alpari

by rcanessa

Update: Contracts with binary options in Alpari are now known as Fix-Contracts, which have the same characteristics as binary options, but with another name. The possible reason for this change in the denomination is the bad reputation that these derivatives have acquired in recent years. Despite this, the information given below applies to the Fix-Contracts that this broker now offers.

Simple Forex Daytrading System

by rcanessa

The following is a simple trading system that uses only two indicators and has given good results. It can be used in any market, including Forex, precious metals and others. Of course, we recommend that before using this trading system to trade with real money, it must be evaluated on a demo account. You can check our list of Forex brokers to find one that satisfies your trading needs.

This trading strategy uses the following indicators:

Bar/candles daily chart.
SMA (Simple Moving Average) of 13 periods.
10-period RSI (Relative Strength Index), with a line at level 50.
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Tickmill Broker offers free $30 USD bonus

by rcanessa

The Forex and CFD broker Tickmill, a company regulated by the FCA of the United Kingdom and the FSA of the Seychelles Islands, is offering for a limited time a promotion for new clients that consists of a free welcome bonus of 30 USD, which does not require a previous deposit. Through this offer, the trader can evaluate the … Read more

Trading System with RSI and CCI

by rcanessa

This is a simple trading technique based on the use of the indicators RSI (oscillator) and CCI (trend indicator). The author claims it is a pretty efficient system, however, I recommend to evaluate it on a demo account before risking real money. The strategy was explained in a forum on the Forex market and its author has indicated that sometimes he obtains more than 400 pips in two days with this system.

To implement the system the trader requires a candle or bar chart with a time frame of 5 minutes (the trader can use longer time frames but can be more risky). The indicators used are the RSI at 14 (it can also be used with 8 periods too) with additional levels at 45 and 50 and the CCI with 14 periods. The recommended currency pairs are:

EUR/USD.
USD/CHF.
EUR/JPY.
GBP/USD.

Because it works based on oscillators and in a short time frame, the system produces false signals, which can be filtered using an indicator like the ADX at 14 for example. The MACD can also be used with a configuration of (3, 81, 29) and (3, 10, 16). Another indicator that can be used is a moving average to verify the direction of the trend. Remember that in markets with a strong tendency the oscillators produce even more false signals so it is best to trade in favor of the trend. For that an EMA can help us.

How affects the control of inflation the Forex market?

by rcanessa

The increase in prices over time, which is inflation, in an economy experiencing growth is inevitable. Furthermore, it is accepted by most economists that a moderate rate of inflation is positive for the economy. In this regard, central banks try to control inflation to be kept within certain limits in order to exploit the positive effects of inflation and reduce the impact of negative effects. In this sense, monetary authorities maintain a constant struggle to control inflation and other monetary forces affecting the economy.

Increases in interest rates

Increasing interest rates is one of the main measures taken by central banks to reduce inflationary pressure when this is high. Moreover, it is easy to apply strategy whose effects are usually seen reflected faster in the economy in comparison with the effects of other methods. By raising interest rates, the central bank raise the benchmark interest rate at which commercial banks will look when granting loans to their clients.

Diamond Reversal Chart Pattern

by rcanessa

Diamonds Chart Patterns Explained

The diamond chart pattern is a very rare and exceptional form of chart formation which looks same like the head and shoulder or an inverted head and shoulder pattern. It is a reversal pattern which appears in a V shape. The diamond patterns will not frequently occur in the market bottoms and it usually takes place during the major top. As these diamonds chart pattern executes as a variant of head and shoulders chart patterns, the traders have to withstand their desire for differentiating the top that resembles a diamond formation. The basic reason for avoiding this pattern is that, the diamonds chart pattern will evoke a break in the trend very sooner when compared to the head and shoulders chart formation.

Basically there are two types of diamond patterns: the diamond bottoms which are formed in bearish trends and the diamond tops which are formed in bullish trends. In both cases the pattern is formed by two juxtaposed symmetrical triangles.

FBS broker offers a $50 free bonus

by rcanessa

The Forex and CFD broker FBS has just announced a new promotion consisting of a free bonus of USD 50 for all its customers, both new and existing, which does not require prior deposit by the trader. It is a no deposit bonus granted to all interested customers, who have to enter their Personal Area and open a new trading account called “$50 Bonus Account”. It is not free money, since the trader can not withdraw the bonus, but can withdraw all the profits obtained in the transactions in which he uses the bonus money.

It is an ideal promotion for traders who are interested in evaluating the services of the FBS broker and trade in the markets with real money and who do not want or can not risk real money in the process. With this bonus the trader can trade with all trading instruments offered by this broker.

-Period of validity of the promotion: At the moment the broker FBS has not indicated a deadline for this offer and is valid throughout 2017-2018, however the company can modify the terms and even cancel the offer at any time. This promotion has ended, however the company now offers a free $100 no deposit bonus for new and existing clients. More information here: 100 USD no deposit bonus from FBS.

Relative Vigor Index (RVI) Indicator

by rcanessa

The Relative Vigor Index or RVI is a technical indicator used to measure the strength or conviction or a recent price action and the possibility of this movement to continue. This indicator was first described in the magazine TechnicalAnalysis of Stocks and Commodities in an article titled “Something Old, Something New – Relative Vigor Index (RVI)” by John Ehlers. Basically the RVI combines old concepts of technical analysis with modern theory of digital signal processing and filters so that it is an indicator that is both useful and practical.

The base of the RVI is simple: prices tend to close higher compared to the market opening in a bullish market (a market with an uptrend) and close lower than the opening in a bearish market (a market with and a downtrend). The energy or force of the movement is thus established by the point or level where the price closes compared with the opening price. In this case the RVI is essentially based on the measuring of the average difference between the closing and opening prices, normalized to the average daily trading range.

XM Loyalty Program (Cash Back Program)

by rcanessa

The Forex broker XM (formerly XEMarkets) has a loyalty program (a cashback program) for all its customers which allows the trader to get bonuses and additional money according to the volume of their trades in the market. To participate in this program, the trader does not have to register or fill out any special form.

More information about the XM broker and its online brokerage services for Forex and CFD at: XM Broker Review

The only requirement is to open a trading account with XM and trade regularly with Forex, precious metals, or CFD. With each transaction, the trader gets a certain amount of points that accumulate and can be exchanged for credit bonuses or cash.

This program has four levels depending on the trading volume of the trader:

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