What are Commodities? – Definition, Types and Examples

What are commodities

A commodity is a word we hear very often, especially in countries with high production of raw materials such as agricultural products and metals for example. We can also say that commodity is a word that has entered the most common and informal language, imported from the economic and financial language. But … what is a commodity? How can it affect us?

A commodity is any good that is mass-produced by man, or of which there are large quantities available in nature, that has value or utility and a very low level of differentiation or specialization. But this definition is very broad and covers many different goods. However, there are many goods that do not meet our definition of a commodity and therefore are not considered as such. Here are some examples.

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Organization of the Petroleum Exporting Countries (OPEC)

Oil market OPEP

OPEC (Organization of Petroleum Exporting Countries) is an intergovernmental group whose main objective – expressed in resolutions 1 and 2 of Baghdad (09/14/1960) – is to serve as a consultative body for its member countries to coordinate and unify respective oil policies. In other words, OPEC tries to formulate programs that ensure the stability of oil prices in international markets, … Read more

Stagflation – Definition and Effects on the Economy

Stagflation in a country is the combination of inflation and economic stagnation. This phenomenon unites these two concepts, which when they occur at the same time are devastating for the economy. In other words, stagflation arises when a country’s economy is stagnant, that is, it does not grow and, at the same time, the cost of living rises, motivated by … Read more

Exchange Rate Risk

Exchange rate risk is the potential loss as a result of currency fluctuations. This potential loss occurs according to its volatility and position at a given time. It is also known as currency risk. The risk in the exchange rate refers to the possible changes in the price of one currency against another. So, depending on the position we have, … Read more

Euro vs dollar (EUR/USD): key concepts to invest in the foreign exchange market with CFDs

EURUSD Currency pair

EURUSD Currency pair

In trading, there are many investment possibilities, one of them is speculation through CFDs in the Forex market, where the Euro vs. Dollar cross (EUR/USD) is one of the most valued now by traders and investors around the world.

The euro and the dollar are the most influential currencies in the market since they correspond to two great economic powers such as Europe and the United States. It should be noted that in Europe there are 19 countries that have the euro as their currency.

Before investing or trading, it is essential to be very clear about some concepts in order to follow the investment strategies in the best possible way and avoid risks to a greater extent, therefore, at ForexDominion we bring you all the information and basic concepts related to the Euro Dollar currency pair.

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How to Measure a Trading System? – Ratios to assess your performance and risk

Example of equity drawdown

When you design a trading system, or you are looking to buy an automatic robot on the market, you must make decisions according to your preferences. The first thing you should ask yourself is: what am I looking for?

It is clear that you are looking to earn a lot of money, yes… this is what we all seek. But after a few losses and disappointments you learn that in Forex and other markets there are no magic methods and that the perfect trading system does not exist.

So, the right question is: how can you evaluate and compare different trading systems according to their risk level and potential benefit to know if they are viable for your use?

In this article we are going to review different statistical metrics to assess the performance of an investment system.

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Forex Currency Correlations Explained – Definition and Uses

Forex Correlations Table

Forex Currency Correlations Table

Have you ever noticed that when a certain currency pair rises, another currency pair falls? Or that sometimes when one pair falls, another pair seems to copy its movement and falls too. If the answer is yes, you have witnessed an example of a Forex currency correlation.

What is currency correlation?

In the financial world, correlation is a statistical measure of how two securities move relative to each other.

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Bullish Harami Cross Candlestick Pattern

Harami Bullish Cross pattern

Definition and identification

The candlestick formation Bullish Harami Cross is a trend reversal pattern that occurs in bearish markets, and indicates that there is a probability that a change from bearish to bullish trend will occurs. This pattern has a moderate reliability and can be identified as follows:

  • First a long candle is produced, which can be white or black.
  • Doji is then formed in the next period, which is within the range of the previous candlestick.
  • The previous trend must be necessarily bearish.

Harami Bullish Cross pattern

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Trend Continuation Patterns in Technical Analysis

Rectangle price pattern

In this article we are going to focus on the topic of trend continuation price patterns. We will cover many topics related to technical analysis such as basic concepts, description of trend continuation formations, and tips on how to trade once the trend continuation pattern is found. In this way, we hope to answer the main questions on the subject, especially those related to the identification of these price formations and their use as technical tools to trade in Forex and other markets.

The three pillars of Technical Analysis

Technical analysis is based on three basic principles, which are known as the three pillars of technical analysis, and they are the following: 

  • Price reflects everything.
  • Prices move in trends
  • The history repeats itself.

It is essential to understand each of them to really understand what technical analysis is and how it works. Let’s review each principle:

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