Jump to content

⤴️-Paid Ad- TGF does not endorse any products advertised. 🔥 Advertise here.🔥

RBFX Support

Representatives
  • Posts

    743
  • Joined

  • Last visited

  • coins

    0 [ Donate ]
  • Country

    Ukraine

Everything posted by RBFX Support

  1. Best Short-term Strategies: GBP/JPY Range Author: Andrey Goilov Dear Clients and Partners, Trading GBP/JPY might be quite tricky because it is so volatile: its average volatility range exceeds 100 points. However, closer to the Asian trading session the market calms down and sometimes forms a range, pushing the pair out of it by the main trend. A short-term strategy called GBP/JPY Range uses no indicators; it includes pending orders which shortens your time in front of the terminal. Moreover, working by the strategy, the trader does not choose or forecast the market direction but simply follows the price. The article is devoted to the idea of this strategy, its trading principles, and to generally checking whether the authors of the strategy have managed to pacify such a volatile pair. Description of GBP/JPY Range For trading by the strategy, we use the M15 chart of the GBP/JPY pair. Stick to the closing time of the American and opening time of the Asian sessions. This is 23:00-02:00 terminal time. Draw horizontal lines through the high and lows of the price in the mentioned timeframe. Then place pending orders for breakaways a bit higher and lower than the drawn levels. If one order gets triggered, delete the second one. If none is triggered over 4 hours, delete both and try again on the next day. Note that the narrower the corridor, the less it is possible that a strong movement will develop. If the range is quite wide, it is unlikely that the movement will continue after the breakaway. In practice, higher volatility changes for lower, then for higher, and over and over again. It is important that we notice low volatility to catch higher volatility later. If the channel is wide, volatility is high, hence, there will be no movement after the breakaway. By the rules of the strategy, if the channel is over 70 points wide, you should not trade. Selling by the GBP/JPY Range As an example of a selling trade, let us take a breakaway of the channel downwards. We mark the beginning of the channel at 23:00 (11 p.m.); the low of the channel is at 152.74, the high is around 152.86. At 03:00 (3 a.m.) the lower border of the channel was broken, and the price went down. Place a Take Profit at the level of two ranges. This time, the movement was strong and triggered the TP at 152.50. In this strategy, we need a Sell Stop pending order as it opens a selling position below the current market price. By the strategy, we must place it 2 points below the low of the range. In our case, it is 152.72. Place a Stop Loss behind the high of our range to avoid random price movements against our position. Hence, we place it at 151.95. Read more at R Blog - RoboForex Sincerely, RoboForex team
  2. RoboForex: important information relating to the .DE30Cash (GER30) instrument Dear Clients and Partners, We’re informing you that the formation principle of the German stock index, which is represented in our platforms as .DE30Cash and GER30, will be changed. Starting from September 20th, it will consist of 40 assets instead of 30 assets earlier. Changes in MetaTrader 4/5 platforms On September 18th-19th, .DE30Cash and DE30Cash will be switched to the "Close Only" mode in MetaTrader 4 and MetaTrader 5 platforms. All pending orders in these instruments will be deleted. At the same time, "Stop Loss" and "Take Profit" levels in open positions will remain intact. If you have open positions in these instruments, you need to close them before December 30th, 2021. All positions that remain open at the end of the trading session on December 30th, 2021, will be closed during the trading session on December 31st, 2021, at the quotes valid at that moment. Starting from September 20th, 2021, instead of .DE30Cash and DE30Cash, you will be able to trade .DE40Cash and DE40Cash respectively. Please consider this information when planning your trading activity and reconfigure trading algorithms affected by the above-mentioned changes. Changes in the R StocksTrader platform In the R StocksTrader platform, the existing instrument, GER30 will be renamed to GER40 on September 18th-19th and it will affect both new and open positions. Starting from September 20th, the instrument will be available for trading as usual. Sincerely, RoboForex team
  3. NZD/USD in Detail: How to Trade Kiwi Dollar? Author: Igor Sayadov Dear Clients and Partners, NZD/USD: brief history The full name of NZD is New Zealand dollar (NZ$). Its story began in the 1970-s as a result of talks inside the International Monetary Fund. There were made several decisions about free conversion via a floating rate based on the supply-demand balance in the market Until 1967, the New Zealand national currency was bound to the British pound and called New Zealand pound. In 1967, New Zealand dollars were first printed and bound to the exchange rate of the USD. In 1973, the floating bind to the American dollar changed for a bind to a basket of the currencies of the main trade partners. However, even such an alteration in dependence did not save the economy of New Zealand from major crises of the 20th century. Nonetheless, NZD/USD is nowadays one of the 8 most popular currency pairs in For example. Among traders, this pair is frequently referred to as Kiwi dollar because this bird is imprinted in a 1 dollar coin. Kiwi is a national symbol of New Zealand. How to trade NZD/USD in Forex? You can trade NZD/USD by fundamental analysis, tech analysis, or indicators. Trading by fundamental analysis Fundamental factors are: economic newspolitical news influencing the economydecisions of the CB on the interest rate. You can trade short-term on economic news or medium-term on political events and CB decisions on the interest rate. As an example, see attached a D1 at the moment when the interest rate decision was announced on August 20th, 2021. The market started growing on August 20th right when the CB announced that it was going to leave the interest rate at 0.25%. At the same time though they promised it would have risen to 0.5% by the end of the year and to 2% by 2024. The market thought of this news as of positive and started buying. As you see, the price grew quite noticeably, which means market players will soon take the profit. Another factor that influenced traders was the growth of quotations in commodity markets. Closing thoughts NZD/USD is a major pair that is frequent in the portfolios of most traders. High volatility attracts market players from all over the world. However, to make a profit, you need a good trading strategy that goes by the rules of Forex trading. For signals, you can turn to the standard set of indicators installed to MetaTrader 4 and MetaTrader 5. Try to use at least two indicatore so that the second one confirmed the signals of the first one. Set up the indicators for your trading strategy specifically. I recommend beginners creating their own trading strategy and testing it on a demo account. If the results are good and stable, start working on a real account. Read more at R Blog - RoboForex Sincerely, RoboForex team
  4. How to Trade by Day-Hour Strategy? Author: Andrey Goilov Dear Clients and Partners, Looking for signals on larger timeframes and then confirming them on smaller ones is quite a widespread strategy. Even in John Bollinger’s book on graphic patterns traders looked for graphic patterns in D1 charts and then switched to other TFs to wait for the same patterns to appear on them. The Day-Hour trading strategy is exactly such a way of medium-term strategy, by which the trader searches for entry points on daily charts, then opens an H4 and assesses the strength of the signal on it. However, you do not need to look for any graphic patterns, as this type of trading is highly subjective: one trader sees one pattern, while another trader can see an absolutely different one at the same place of the chart. By this strategy, the trader only cares for signals from technical indicators. This makes trading completely objective. Which indicators to use for Day-Hour? This strategy requires use of indicators. The first one is the usual Moving Average. The indicator is easy to use: If the price is above the Moving Average, then the trade is bullish, hence look for signals confirming the growth;If the price has dropped under the MA, the trend is bearish, and you need selling ideas. The other two indicators used in the strategy are oscillators: the MACD and RSI. Most often, traders use a trend indicator and one or more oscillators to look for signals that confirm the trend. All in all, add to the chart the following indicators: Moving Average (3). The “shift” parameter is also at 3. The line will be shifted three candlesticks to the right. This indicator is necessary on the daily chart.The MACD with the parameters 12, 120, 5. This is an indicator fir H4.The RSI with period 9. The overbought level is 70 and the oversold area is 30. This oscillator is also for H4. All these indicators can be found in the standard settings of MetaTrader 4, MetaTrader 5, or R Trader. This is a huge advantage as you do not need to download or install anything extra. Closing thoughts The Day-Hour strategy is meant for trading the trend, as one of the main traders’ rules goes. For a decent market entry, the strategy implies analyzing both D1 and H4 of the instrument. This method decreases risks and gives a chance a catch a good movement on the D1. The drawback of the strategy is that it remains valid only when there is a good movement on the chart. When the price is in a flat, the trader will constantly be seeing breakaways of the MA up and down, which might entail a series of bad trades. On the other hand, opening a position by a trend that is just beginning, you never know what levels it might reach. Read more at R Blog - RoboForex Sincerely, RoboForex team
  5. Why Is It Time to Invest in China? 3 Promising Companies for Investing Author: Eugene Savitsky Dear Clients and Partners, This overview is devoted to a popular stock index Russell 2000: its contents, its differences from the S&P 500, and ways of trading it. What is Russell 2000? The Chinese government would never leave stock market investors in peace. After the market of commercial education was destroyed, which was confirmed by the 90% decline of the share price of New Oriental Education & Technology Group Inc. (NYSE: EDUCATION), TAL Education Group (NYSE: TAL), and Gaotu Techedu Inc. (NYSE: GOTU), any criticism of any sector of business becomes a signal for new tough regulations. For example, a banal article in the state-controlled media, in which online games were compares to "spirit opium" for adolescents, led to a decline of the share price of such companies as Tencent Holdings Ltd ADR (OTC: TCEHY), NetEase Inc (NASDAQ: NTES), and Bilibili Inc (NASDAQ: BILI). However, even in such circumstances, investors show interest towards Chinese companies. The famous ARK Invest manager Cathie Wood earlier sold Chinese stocks with a loss, but after JD.com (NASDAQ: JD) and Pinduoduo (NASDAQ: PDF), she decided to invest in Chinese companies again. All in all, market players see the risks of investments in Chinese companies but cannot withstand the temptation to buy stocks. In this article, I suggest taking a look at the Chinese market and tell you about 3 companies the shares of which might grow when business regulations in China stabilize. Who is the real rival of Tesla in China? We have got used to thinking that the main rival of Tesla (NASDAQ: TSLA) in China is NIO. But if we look at the statistics of cars sold in the Chinese market in Q2, we will see that this is a misleading idea. By the end of Q2, Boyd Gaming had sold 54,841 fully electric cars. NIO sold 21,896 electric cars. Tesla sold 61,745 electric cars in China, so Boyd Gaming looks more like the main rival. Apart from electric cars the company also sells hybrid vehicles, and in this sector, dynamics are positive every month. For example, in July Boyd Gaming sold 50,492 hybrid cars, which is 170% more than in July 2020. The advantage of Boyd Gaming against such Chinese car-makers as NIO, Spent, Like auto, is that the former is profitable. By the end of Q2, it had venerated 113 million USD of net profit. Buffett invests in director-general of Boyd Gaming Corporation There is one more detail that might seem tiny yet it supports the idea of investing in Boyd Gaming. 11 years ago, Warren Buffett broke his rule to invest in those companies the business of which he understood and invested in Boyd Gaming. He later admitted that he knew little about either electric cars or batteries. Buffett was impressed by the director-general of the company Wáng Chuánfú, or, more precisely, the description of this person given by Buffett's affiliate Charles Munger. Munger told the Fortune Magazine that "the guy" was a combination of Thomas Edison and Jack Welch. Something like Edison on the technical side and Welch in the sense that he did what he wanted to. That time Berkshire Hathaway bought 10% of Boyd Gaming. On the chart of 11 years ago, the shares cost about 10 USD. Last spring, the stock price dropped to this level but then aimed directly upwards. Now the shares cost 62 USD. It is important for us because Wáng Chuánfú does still manage the company. Tech analysis of Boyd Gaming Previously, Boyd Gaming shares bounced off the 200-days Moving Average and are trading above it, which indicates a prevalent uptrend. The nearest resistance level is 65 USD. If the price breaks it away, it will grow again and renew the all-time high of 71 USD. Bottom line The Chinese authorities are trying to improve the demographic situation in the country, so they are now busy looking for those in charge of the slow-down in this sphere (the law one family-one child is apparently forgotten). As a result, the stock market is in turmoil as no one knows when those responsible will be punished and who turns out to be blamed. In the meantime, the government fights monopolies, which makes the market even more nervous. The market is also getting cleaned from companies that cannot pay off their debts, i.e. the authorities reject to help. All this makes investments super risky, so think of it if you decide to put your money in Chinese companies. Read more at R Blog - RoboForex Sincerely, RoboForex team
  6. What Is Russell 2000 and How Does It Differ from S&P 500? Author: Victor Gryazin Dear Clients and Partners, This overview is devoted to a popular stock index Russell 2000: its contents, its differences from the S&P 500, and ways of trading it. What is Russell 2000? The Russell 2000 index (US Small Cap 2000) is one of the leading global indices based on the stock prices of 2,000 companies with small capitalization traded in the USA. The index was created in 1984 by the Frank Russell Company, a part of the London Stock Exchange. Russell 2000 is called a wide market index among small companies as it represents stock price dynamics of tier 2 and 3 companies. The Russell family consists of several indices, the most famous of them being: Russell 3000 is an index based on the stock prices of 3,000 largest public companies registered in the USA. Their overall capitalization makes up for 97% of the American stock market.Russell 2000 is an index consisting of 2,000 smallest companies of the Russell 3000 index.Russell 1000 is an index that tracks 1,000 stocks with the highest rating from Russell 3000. Russell 2000 is the most popular index among investors who hold shares of companies with small capitalization. Investors usually track this index to assess the market efficacy of small enterprises, mostly working for the domestic market. As long as there are so many companies in the index, your portfolio automatically diversifies. Leading companies of Russell 2000 include startups in the spheres of healthcare, food, and consumer goods. Russell 2000 is calculated based on capitalization-weighed stock price of all the companies in it. The index gets revised every year, some companies being removed from and some added to it. How does Russell 2000 differ from S&P 500? The number of companies: S&P 500 uses the shares of 500 largest companies, and Russell 2000 – the shares of 2000 smaller ones.Capitalization of companies: S&P 500 tracks the leading companies; it is meant for investors who hold the shares of large enterprises. Russell 2000 demonstrates the state of affairs in small companies; it is meant for investors who hold small but promising shares in their portfolios.Volatility: depending on the current market conditions, the volatility of S&P 500 and Russell 2000 may differ. At certain times, one index demonstrates better volatility, while the other comes to the scene as soon as the situation changes.These two indices have both differences and common features. S&P 500 is a wide market index that includes companies with the highest capitalization, while Russell 2000 is a wide market index with a low capitalization. The main differences are as follows: On the whole, regardless of all the differences, S&P 500 and Russell 2000 have been showing similar dynamics. How to trade Russell 2000 First of all, Russell 2000 is a most popular investment instrument but it can be used for short-term trading as well. Thanks to a wide range of instruments (ETFs, futures, options, CFDs) for trading Russell 2000, different strategies may be used. Read more at R Blog - RoboForex Sincerely, RoboForex team
  7. 3 Stocks that Can Grow This Autumn Author: Eugene Savitsky Dear Clients and Partners, The stock market cannot live without tart topics; investors always need something to anticipate. An increase in the interest rate? Uncertainty is really tiresome. Inflation? Jerome Powell told us not to worry, and we shall not for the time being. What is left? Well, autumn is coming, and this means the number of respiratory diseases will become more frequent. And this, in turn, means COVID-19, only the Delta type. More people go to hospital in the USA People’s fears about the new coronavirus type are rather fair. On August 2nd, 10,000 people were put to hospital just in Florida and Louisiana, which is the absolute high since the beginning of the pandemic. This did not lead to a new quarantine yet, but wearing masks is now a must. Healthcare workers also fall ill, and this makes things even more complicated because there is a personnel shortage in healthcare institutions. The government is calling for total vaccination. If earlier there used to be more elderly people among those put to hospitals, these days younger people, i.e. the active part of the population, fall prey to the virus more often. This might turn out to be a bad influence on business. Should we wait for a crisis in autumn? Will lockdowns of last year repeat themselves? I quite doubt this. What would they need vaccination, otherwise? Will they admit that it was a waste of money? It would be too simple. Stocks would fall by 50-80% again. Investors would rush at buying them, knowing what was to follow, and absolutely everyone would make money. Like fun. Each new crisis goes by a scenario that never came to life before, and the repetition period is much longer than a year. Zoom Video Communications shares are growing So, do investors indeed fear a new wave of COVID-19? Yes, they do. The media are speculating on this all the time, making market participants nervous. The most prominent beneficiary of COVID-19 in 2020 was Zoom Video Communications, Inc. (NASDAQ: ZM). The last steep growth of its stocks from 350 to 400 USD was propelled by the expectations that the company’s services would become popular again with a new quarantine. In this chart, we can see the pair sky-rocketing in 2014 due to the Ukrainian events and imposing sanctions on Russia. The growth lasted for almost 2 years. If the average daily volatility is about 30-50 kopecks, during that period it kept growing, reaching 27 rubles at times. Only the decisiveness of the CB and interest rates lifted by 17% managed to stop this. Closing thoughts Information hurricane around the Delta strain will only speed up, and market players will sometimes pay attention to the issuers that have experienced a positive influence of lockdowns. The worst scenario is a new quarantine imposed, in which case companies that have gone deeper in debt will be threatened bankruptcy, and airlines are most vulnerable here. In autumn, avoid companies deeply in debt and with a small free money flow. As for delivery services, they have enough money to pay off their debts, buy back shares, and pay dividends. There is always a risk, of course, but there it is minimal. Read more at R Blog - RoboForex Sincerely, RoboForex team
  8. RoboForex: changes in trading schedule (Late Summer Bank Holiday in the United Kingdom) Dear Clients and Partners, We’re informing you that due to the public holiday in the United Kingdom (Late Summer Bank Holiday) on August 30th 2021, several instruments will be traded according to the changed schedule*. MetaTrader 4 / MetaTrader 5 platforms Trading schedule on Russian GDRs August 30th, 2021 - no trading.August 31st, 2021 - trading starts as usual. R Trader platform Trading schedule on CFDs on UK stocks August 30th, 2021 - no trading.August 31st, 2021 - trading starts as usual. Trading schedule on CFDs on UK100 index * - This schedule is for informational purposes only and may be changed by the provider. Sincerely, RoboForex team
  9. What Happens to Oil Market over 2021? Author: Anna Rostova Dear Clients and Partners, In 2021, the oil market has been in turmoil. It seems that this will not change in the nearest future. Let us look into detail. Is there actually demand? The International Energy Agency thinks that in 2021, oil demand will end up at 96.2 million barrel a day. Tye last revision gave slightly worse digits that initially. In June, global demand extended to 3.8 million barrel a day because the mobility of people and business in Europe and North America increased. However, in July, worse pandemic conditions made the demand shrink. All expectation concerning the demand have to deal with the pandemic. The latter prescribes its conditions. Some European countries started imposing certain restrictions again because the number of people falling prey to the new Delta strain is increasing. This type of the coronavirus is more aggressive than the previous one. There are fears about the virus spreading through Asia. New Zealand has already started a lockdown; situations in China and Japan are threatening. The digits are not as large, yet the very trend is scary. Australia has thrown its defense forces for watching out during curfew in Sydney. In Japan, regardless of the state of emergency in some prefectures, the daily number of the infected beats records of 100,000 people. As long as Delta dictates its conditions to consumers and business, global commodity suppliers will not manage to increase sales. There is one more detail to pay attention to. India starts selling oil from strategic reserves. This is done to empty a part of space (about 30%) to be used further by private companies. India is supposed to sell about 10 million barrels a day extra. These volumes will partially smooth out supply shortage, though this problem has become less acute then before. Oil reserves in China have been decreasing for four months in a row. In July, they dropped by 224,000 barrels a day. This is weird: China is one of the largest global oil importers. The phenomenon is described by statistics that shows that industrial production in the country has worsened alongside retail sales. Also, there is OPEC+ that increases production every month, trying to return to the supply market what has been taken away before. Taken together, supply is quite abundant, while demand is still questionable. Nothing promises stabilization here. Do not forget OPEC+ By September 2022, OPEC and countries that joined it, will have returned 5.8 million barrels of oil a day to the market. These are volumes that have been taken out of the market to balance oil prices. Now things are getting back to what they were like. August through the end of 2021, the market will be supplied by 400,000 barrels a day. The speed is more than moderate, which allows for keeping a close eye on the demand and avoiding excessive pressure on the quotations. Quite recently, US authorities asked OPEC+ for further increasing production: in the USA, gasoline prices are growing, which worsens inflation pressure and possibly slows down economic growth. Washington is nervous and is looking for ways of decreasing the pressure. The easiest way out is to contract with large suppliers about a general increase in production. However, OPEC+ countries decided to avoid hasty steps and refused. Incident OPEC+, they think that oil markets do not need more crude material than they have now. This year, a barrel of Brent has already grown by 35%. Some say that OPEC+ holds back production, trying to reach their own goals, such as never let the quotations fall to fast. If we admit that oil supply will be extending too fast, investors and capital markets will face a decrease in commodity prices. Read more at R Blog - RoboForex Sincerely, RoboForex team
  10. How to Trade USD/RUB? Author: Victor Gryazin Dear Clients and Partners, USD/RUB is an exotic currency pair, in which the quoting currency - the Russian ruble - is the most interesting. The article is devoted to the characteristics if the pair and peculiarities of trading it. General information about the ruble Russian ruble is the currency of the Russian Federation. It is the second-oldest currency in the world after the British pound. The modern ruble appeared in 1991. Later it underwent two monetary reforms: in 1993 and 1998. Since 2014, its exchange rate has been “floating”, which means it fully depends on the demand and supply in the currency market. The Russian ruble is controlled by the Central bank of Russia along the regulations of the International Monetary Fund. Note that this monetary policy is explained by the development of Russian independent economy. The Russian ruble takes the 18th place, or 0.70%, in the global currency turnover. To compare, the US dollar is number 1, taking up to 40% of the turnover; next goes the euro (30%), yuan (1.5%). Trading peculiarities of the Russian ruble On global trading platforms, the ruble is traded against the USD and EUR. Its trading peculiarities would be: Periodic influence of Western sanctions since 2014;Periodic influence of the commodity sector on the whole of Russian economy. Both factors reflect in the exchange rate of the Russian ruble. Forex charts demonstrate quite significant volatility in the times of such events. In this chart, we can see the pair sky-rocketing in 2014 due to the Ukrainian events and imposing sanctions on Russia. The growth lasted for almost 2 years. If the average daily volatility is about 30-50 kopecks, during that period it kept growing, reaching 27 rubles at times. Only the decisiveness of the CB and interest rates lifted by 17% managed to stop this. Read more at R Blog - RoboForex Sincerely, RoboForex team
  11. Doji Pattern: Types and Trading Author: Victor Gryazin Dear Clients and Partners, This overview is devoted to the types of the Doji pattern and ways of trading it. This is a candlestick pattern that appears on price charts from time to time and signals about an upcoming correction or a reversal of the current trend. What is Doji? Doji is a potentially reversal pattern consisting of one candlestick that gave it it's name. Doji candlesticks are extremely important tech analysis elements. It does not have a normal body because it's opening and closing prices nearly coincide, with a maximum difference of a couple of points. When a Doji appears on the chart, it indicates a temporary balance, market uncertainty because neither bulls nor bears succeed in pushing the price this or that way The place where a Doji forms on the chart is extremely important: 1. Doji in a flat. When this pattern is in the middle of the range, it gives no trading signals. In such a case, a Doji simply reflects temporary consolidation of the quotations before a new price impulse starts. 2. Doji at the market high indicates a possible reversal downwards. When this pattern appears after some growing white candlesticks, this might mean the ascending price impulse is nearly over. Setting new highs, bulls reachea a strong resistance area that they failed to break through. Now bears are ready to counterattack, provoking a descending correction or even a reversal downwards. 3. Doji at the market lows signals about a potential reversal upwards. When the pattern forms after declining black candlesticks, this might means the descending impulse is nearly over. Bears reached a strong support level where they faces bulls. Now the latter ones, seeing that their rivals are weak, are trying to turn the market upwards. All in all, a Doji appearing at the highs or lows of the chart signals about a possible reversal. Also, a Doji candlestick might be a part of several other reversal patterns; a pattern also called Doji can later transform into some other reversal candlestick combination. Bottom line Doji is a potentially reversal pattern of candlestick analysis that forms on the local extremes of the price chart. It can work both on its own and as a part of other reversal patterns. Before you begin real trading, backtest you understanding of Doji and practice on a demo account. Read more at R Blog - RoboForex Sincerely, RoboForex team
  12. How to Use Aroon Indicator in Forex? Author: Victor Gryazin Dear Clients and Partners, This overview is devoted to an oscillator called Aroon. If helps detect the current trend and find entry points to the market. Description of Aroon Aroon is a trading indicator that belongs to the group of normalised oscillators. It was designed by a trader of Indian origin Tushar Chande in 1995 for assessing the market trend, whether it is strong or weak. As long as Chande was born in India, the name of the indicator belongs to Indian mythology: in Sanskrit, Aroon means Charioteer of the Sun God or Light of the Morning Dawn. Aroon contains of two main lines: Aroon-Up and Aroon-Down. The Aroon-Up line is blue; it assesses from 0 to 100% the ratio of the number of periods (weeks, days, or hours, depending on the chosen timeframe) that have passed since the high appeared on the chart — and the period of the indicator. The less time passes since the last high appeared on the chart, the higher the Aroon-Up line goes.The Aroon-Down line (red color) assesses from 0 to 100% the ratio of the number of periods (weeks, days, or hours, depending on the chosen timeframe) that have passed since the low appeared on the chart — and the period of the indicator. The less time passes since the last low appeared on the chart, the higher the Aroon-Down line goes. The indicator is calculated in a separate window under the price chart. Through levels 30% and 70%, lines are drawn that help detect the current trend. If Aroon-Up goes above 70%, and Aroon-Down drops below 30%, this means the trend is ascending, bulls are dominating. And vice versa: when Aroon-Up is below 30% and Aroon-Down rises above 70%, the trend is descending, and bears are in control. Closing thoughts The Aroon indicator, created by an Indian trader Tushar Chande, helps detect the prevailing market trend. Also, it gives its own trading signals that should be used alongside classic methods of tech analysis, price patterns, Price Action for more reliability. Before you start trading for real, practice on a demo account. Read more at R Blog - RoboForex Sincerely, RoboForex team
  13. RoboForex receives the “Most Transparent Broker (Global) 2021” award Dear Clients and Partners, in 2021, RoboForex was nominated at the World Economic Magazine Award and received the title of “Most Transparent Broker (Global) 2021”. We know how much traders appreciate honest conditions and transparency of trading, that’s why we’re doing our best to make all financial processes as faultless as possible. Every month, RoboForex provides information about 5,000 anonymous transactions for analysis and confirmation of order execution quality. The company was successfully verified by Verify My Trade to confirm its compliance with the high standards of The Financial Commission. Another achievement of RoboForex, the “Most Transparent Broker” nomination, proves that we’re moving in the right direction and motivates us to be better and more effective in improving the services and products we provide our clients with. Start trading at RoboForex and experience the broker’s operation transparency first-hand! Sincerely, RoboForex team
  14. How to Become a Successful Partner of a Forex Broker? Author: Andrey Goilov Dear Clients and Partners, Alongside direct income on the Forex market, anyone, who is willing to, can become a partner of a brokerage company and get additional remuneration for attracting new clients to it. The more active (trading) clients a partner attracts, the bigger the remuneration, which may be considered as some kind of passive income. As a rule, to become a broker’s partner, one must register on its website, get a link with a unique code and forward it to other traders, who do not have any accounts at this company yet. Just like in any other activity and field, to become a successful partner one has to spend a lot of time and gain some experience. Brokerage services can be promoted in different ways: cutting-edge technologies allow you to quickly create your own website or YouTube channel, where you can post your ideas about financial markets and simple forecasts. However, it takes a lot of time to create quality content for website visitors and some money to promote and advertise it. In this article, we’ll discuss how brokers’ partners can attract clients and succeed. Methods to attract new clients Unfortunately, there is no general scheme, according to which you will become one of the best partners of a broker with a high income. You should try different methods of attracting active clients and improve the areas that bring you the most profit. There are several key channels that a partner can use to attract clients quickly and easily, such as: Social networksYouTube channelsOwn websites Now let’s take a closer look at each of them. Social network pages and profiles This is one of the easiest ways to start working as a partner and find your audience. After creating a profile or a page in a social network that is popular in your region, you can devote it to financial news, publish trading ideas, or any other content useful for traders. For instance, posting examples of successful signals may help you to become popular both with beginners and more experienced traders. Pages and content have to be constantly updated and promoted by means of advertising. After attracting plenty of visitors, you will be surely asked a lot of questions and one of them is where you prefer to trade and what company would you recommend to your subscribers. And here you can use an affiliate link you received after registering with a broker. Read more at R Blog - RoboForex Sincerely, RoboForex team
  15. How to Trade Master Candle Method Strategy Author: Maks Artemov Dear Clients and Partners, If someone was looking for a simple and easy-to-understand trading strategy, consider your search is over. Master Candle Method is a trading system based on one indicator and one only. It signals an opportunity for trading and shows spots where to enter and leave the market. The strategy is applicable for trading only GBP/USD and GBP/JPY pairs, and only on the Н1 timeframe. Desktop of Master Candle Method A signal to buy in the Master Candle Method strategy A signal appears when there is a candlestick on the chart with 4 more candlesticks being formed inside it. As soon as this condition is met, two dashes appear – the first one is black, above these candlesticks, the second dash is green, a bit higher, 3-candlestick long. Above this green dash, a pending buy order is placed with a 3-hour spread value. If a signal appeared and three candlesticks were formed after that but a pending order wasn’t triggered, this order should be removed. As you can see here, the first signal to buy wasn’t triggered because the Bid price didn’t touch the green dahs over the course of three hours after the signal appeared. However, in the second example, it was triggered. Read more at R Blog - RoboForex Sincerely, RoboForex team
  16. Multipliers for Stock Analysis: Reviewing Ebitda Author: Maks Artemov Dear Clients and Partners, In our previous articles, we’ve already discussed several market multipliers such as P/S, P/E, ROI, ROE and the ways they are calculated. This time, we’ll get acquainted with another one called Ebitda. Just like other multipliers, Ebitda provides insight into the company’s finances based on its performance. The Ebitda multiplier – what is it? Ebitda means “Earnings before interest, taxes, depreciation, and amortization”. Basically, it’s the money earned by a company before all expenses. This multiplier was created way back in the eighties last century and has been used since then because it still appears relevant and can be applied for assessing the financial capabilities of business entities. Big companies and corporations with massive expenses and assets, which they have been depreciating for a long time, find it very favourable to focus interested parties on the Ebitda coefficient. By doing this, they make their companies more attractive to investors. And vice versa, small companies with minor expenses and assets prefer not to showed their Ebitda multiplier, as it can ruin their investment appeal. Quite often, Ebitda is coupled with a similar multiplier called Ebit, although they are calculated in different ways. Ebit implies “Earnings before interest and taxes”. What does Ebitda show? 1.Efficiency of the company’s performance in comparison with its competitors in the industry. Just like many other multipliers, it won’t do any good comparing companies from different sectors. 2. Profitability. Whether there is any use in investing money in this particular company and what profit expectations it offers. 3. Profit expectations for paying expenses, amortization, and taxes. Can the company afford to pay all the above-mentioned and what profit will it have in the end? Advantages and disadvantages of the Ebitda coefficient (multiplier) Advantages: 1. It’s more accurate than other multipliers in determining the volume of money due to consideration of amortization. 2. It allows to compare companies with different tax deduction levels, capital structures, and amortization indicators. 3. It offers the opportunity to compare profits before tax and amortization. Based on them, one can draw a conclusion which company is better at optimizing their expenses. Disadvantages: 1. There is no single calculation method. Calculations for different companies may vary a lot, hence the comparison is made with unsuspected errors. 2. It doesn’t take into account changes in the company’s working capital, thus leading to an incorrect volume of money, which is usually overestimated. 3. In the case of neglected capital expenses, it misinterprets the company’s actual capabilities to repay its debts. 4. The company’s accounting policy has a direct influence on the Ebitda coefficient. How Ebitda is calculated There are two of the most popular methods to calculate Ebitda: Ebitda top-down = Revenues – Costs of goods (not including amortization) + Operating expenses Read more at R Blog - RoboForex Sincerely, RoboForex team
  17. Best Medium-term Strategies: Larry Williams's Moving-Average Based Strategy Author: Timofey Zuev Dear Clients and Partners, Larry Williams described this strategy in his book "Long-term Secrets to Short-term Trading". It suits both Forex and other financial markets. With timeframes, things are more complicated: technically, the strategy suits TFs from M1 to MN but as long as from opening to closing the position more than one candlestick can pass, trading on small TFs can be unprofitable due to fixed spreads, like in Forex. The desktop of Larry Williams strategy Explications: A Simple Moving Average drawn through High.A Simple Moving Average drawn through Low.Local highs of the SMA (High).Local lows of the SMA (Low). As a result, we get a channel that will work by a special algorithm along the prevailing trend. The prevailing trend is the one that has recently renewed local extremes of the MAs. If the highs have been renewed, the trend is ascending; if the lows have been renewed, the trend is descending. Signals to buy by the strategy Larry Williams suggests the following conditions for buying: in an uptrend, open a position when the price touches the SMA (Low) and close it when the price touches the SMA (High). As soon as one trade is closed, open another one and keep going until the trend changes to descendin. If a signal to buy coincides with a trend reversal, skip the signal and start trading when the trend becomes ascending again. An example of signals to buy: Note that in the picture, there are several buying opportunities, but keep in kind that only one position must be opened and closed before you open the next one. Read more at R Blog - RoboForex Sincerely, RoboForex team
  18. How to Trade VIX? Author: Andrey Goilov Dear Clients and Partners, Traders have always been trying to analyze and forecast future price movements. There are plenty of ways of making such forecasts and analyses. Some use chart patterns, some construct complicated trading systems based on indicators. However, there is always an alternative to all these approaches, which is VIX analysis. This instrument is the index of future volatility of the US stock market. It is also known as "the fear index" because it can demonstrate the market sentiment. When the index values grow, this might mean that the market is expecting serious movements, such as corrections or even global crises. This information, in turn, can be used for making trading decisions. This article is devoted to VIX and the ways of trading it and its derivatives. What is VIX? VIX, or the Volatility Index, was created in 1993 in Chicago Board Options Exchange. Speaking rather particularly, it represents the opinion of traders on the stock market behavior over the next 30 days. VIX is calculated by the Black-Scholes formula based on 8 stocks from the S&P 500. VIX values can give an idea of how volatile next market movements will be, and this information, in turn, might help investors make a good trading decision. Some say that market volatility will grow alone guide the growth of the index values. And if the index values are low, the market will remain stable, while any expectations of volatility surges or some malfunctions in the global economy will be useless. For example, in March 2020, the index values rose extremely high, reaching the level of 2008 when the world got immersed in a tremendous economic crisis. Indeed, the beginning of 2020 was rather unstable, and investors were pretty scared, which resulted in a serious slump of stocks. Now it is clear that while the market is falling deeper and deeper, panic and uncertainty among investors only grows, and VIX values rise. With VIX, you can try catching the beginning of panic as well as its potential end and start buying cheaper shares without any hurry. How to trade VIX? Most often, the fear index is invested in via ETFs or ETNs. Let us focus on some of the instruments. ProShares VIX Short-Term Futures ETF (VIXY) This is a rather popular instrument among other ETFs. It represents the volatility dynamics of VIX based on the S&P 500 VIX Short-Term Futures Index, which, in turn, consists of a set of short-term VIX futures. However, I would recommend VIXY to experienced investors only. As a rule, when the investor understands well what they need, they either try to make a profit on the growth of the S&P 500 volatility or hedges from a significant market slump. iPath B S&P 500 VIX Short-Term Futures ETN (VXX) This one is a popular instrument among ETNs. It offers an access to a daily moving long position in VIX futures of the first and second month. VXX represents expectations of investors about the future direction of VIX at the moment when its futures expire. The asset is volatile, and its movements can reach 10% a day, but high risks mean high potential profit that might be interesting for aggressive traders. Note that VIX movements may have no correlation with VXX, there is a certain lag. Traders also note that VXX does not suit long positions but it still has negative correlation with the S&P 500. Hence, in large corrections, traders can make money on the growth of volatility with iPath B S&P 500 VIX Short-Term Futures ETN (VXX). Closing thoughts In essence, VIX represents the volatility of the US stock market. If its values rise high, investors are afraid of an approaching market correction. And if VIX values are low, this means investors are confident about future market growth. Note that investments in VIX are thought to be risky, recommended to short-term and aggressive investors only. The "buy and hold" principle is useless here, you will have to keep tracking trades and market behavior on the whole to avoid serious losses. The best time to invest in volatility is a financial crisis because market players will freak out and sell their assets, which will provoke the growth of volatility and a surge in VIX. Do not forget about derivatives, such as ETFs and ETNs: they are available and east to sell and buy as any stocks in the marke. Read more at R Blog - RoboForex Sincerely, RoboForex team
  19. RoboForex: important information regarding GE reverse stock split on July 30th, 2021 Dear Clients and Partners, On July 30th, 2021, General Electric (GE, GE.ny) will have its stock go through a reverse split with a ratio of 1:8. A reverse stock split is a corporate action as a result of which the company reduces the number of issued shares by a specific multiplier and simultaneously increases the value of each share by that multiplier. GE's split for example will mean that a shareholder who had 8 shares that are worth 13 USD each or 104 USD in total will have 1 share worth 104 USD. How will it influence positions and orders? If you have open positions in GE or plan to open such positions, please pay attention to the following changes, which will happen between 31st of July and 2nd of August. MetaTrader 4 / MetaTrader 5 accounts All pending orders (Buy Limit, Buy Stop, Sell Limit, Sell Stop, Buy Stop Limit, Sell Stop Limit, Stop Loss and Take Profit) orders on GE will be cancelled before the session opens at 16:31 on the 2nd of August.The opening price of all positions that are open as of 15:00 (server time) on the 2nd of August on GE will be multiplied by 8.The volume of all open positions on GE will be divided by 8.In case the total exposition in GE is not a multiple of 8, the account will retain an open position with a volume that is a multiple of 8. The remaining volume will be closed at the last price of the 30th of July (Bid price will be used for Buy positions and Ask price for Sell positions). Example: In case you had one position with a total volume of 42 shares purchased at a price of 12, as of the 2nd of August, your account will have one open position with a volume of 5 and an opening price of 96 (12*8) and cash transaction with an amount equal to the result of closing the remaining 2 shares at the last price of the 30th of July. In case you had several positions, they will all be combined into one position. The new position will have the opening price based on an average weighted price of all positions held before the split. If you had 3 following positions, 10 shares purchased at a price of 12; 20 shares purchased at a price of 12.5; 12 shares purchased at a price of 13, as of 2nd of August, your account will have: an average weighted price of all positions is (10*12+20*12.5+12*13)/42= 12.52.one open position with a volume of 5 and an opening price of 100.16 (12.52*8).2 positions closed with 0 result.cash transaction with an amount equal to the result of closing the remaining 2 shares at the last price of the 30th of July. In case the total exposition in GE is less than 8, the position will be closed at the last price of 30th of July (Bid price will be used for Buy positions and Ask price for Sell positions). R Trader accounts The Split procedure will run on the server at 15:00 server time. During the procedure, all active pending orders (Buy Limit, Sell Limit, Take Profit, and Stop Loss) for GE and GE.ny will be cancelled.The opening price of all positions that are open as of 15:00 (server time) on the 2nd of August will be multiplied by 8.The volume of all open positions will be divided by 8.If you hold more than one position in any of those instruments in one direction, they will all be combined into one position. The new position will have the opening price and a volume based on an average weighted price of all positions held before the split.In case a deal receives fractional shares, such shares will be liquidated for cash transaction - "Split cash correction". The volume of other deals for the related instrument will be reset to 0 and moved to History Tab. Pay attention to Expert Advisors (EA) If you are using an Expert Advisor (EA), we suggest that you double-check with its developers whether its code needs any modifications to ensure that the EA operates correctly after the stock split. The historical charts in your trading terminal will be updated to reflect the new prices of the instruments. Please, take into account this information when planning your trading activity. All other aspects of trading conditions shall remain the same unless otherwise stated. Sincerely, RoboForex team
  20. How to Trade the Engulfing Pattern? Author: Dmitriy Gurkovskiy Dear Clients and Partners, This overview is devoted to the Engulfing pattern; to how it forms and works. This candlestick pattern is easy to note on the chart. It forecasts a reversal of the actual trend. How does the Engulfing pattern form? The Engulfing pattern is a reversal candlestick pattern that forms on the local highs and lows of the price chart in an uptrend or downtrend. It consists of two candlesticks: the first one has a relatively small body, while the second one is of the opposite color and has a larger body that fully covers (engulfs) the first candlestick. In terms of the market behavior, an Engulfing pattern means that the actual trend is losing its power and tempo — the first candlestick demonstrates this. The previous movement loses strength, and the market balance is feeble. The appearance of the next mighty candlestick of the pattern that engulfs the previous one and closes in the opposite direction, signifies the beginning of a correction that might even turn into a reversal of the current trend. Types of the Engulfing pattern Depending on the color of the second engulfing candlestick, two types of the pattern are sungled out: the Bullish engulfing and the Bearish engulfing. Bullish engulfing The pattern forms in a downtrend at the local lows of the price chart. The first small black candlestick of the pattern shows that bears are losing power; then a large white candlestick appears, fully engulfing the body of the first one. This means that bulls are advancing, feeling the bears' weakness. Next thing, the price goes upwards, and an ascending correction starts. This is confirmed by the quotations rising higher than the high of the large bullish candlestick, the second one. Bearish engulfing The pattern forms in an ascending impulse at the local highs of the price chart. The first small white candlestick means that bulls are tired and need a pause. The large black candlestick that follows shows that bears are using their chance, counterattacking. Then the quotations go down, and a descending correction starts. This is confirmed by falling under the low of the second candlestick, the large and white one. Closing thoughts Reversal candlestick patterns called Bullish engulfing and Bearish engulfing form at the local extremes of the price chart in an uptrend or downtrend. They predict a possible correction or even a reversal. The efficacy of the patterns increase in presence of certain enforcing factors and alongside tech analysis patterns, support/resistance levels, and signals of trading indicators. Before trading for real, practise the patterns on a demo account. Read more at R Blog - RoboForex Sincerely, RoboForex team
  21. Top-7 Oscillators for Trading Author: Victor Gryazin Dear Clients and Partners, Trading indicators have long become useful instruments in traders’ work. This article is devoted to seven popular oscillators that help detect the current market situation and give signals for opening and closing positions. 1. The MACD (Moving Average Convergence/Divergence) This is one of the most popular oscillators. It was created by a famous trader and analyst Gerald Appel. As the name of the indicator tells us, the indicator is comprised of several MAs with different parameters. The indicator is calculated in a separate window on the terminal desktop and consists of two lines, one of them presented by a bar histogram. A trading signal is basically a crossing of the two lines or a divergence of their extremes (highs and lows) with the price chart. A divergence might be predicting a correction or even a trend reversal. 2. RSI (Relative Strength Index) RSI is a normalized oscillator. The developer and popularizer of the indicator is J. Welles Wilder. RSI shows the position of current prices compared to the previous period. It has become a great option for trading flats as it shows how much the price has deviated from its average. RSI is displayed in a separate window under the chart of your asset. Trading signals are generated by levels 30, 50, and 70. The area above 70 is called overbought. There signals to sell appear. The area below 30 is called oversold, and there signals to buy emerge. If there is a bright trend in the market, use RSI by the trend only. 3. The Stochastic Oscillator The Stochastic Oscillator was created by a famous trader George Lane. He noted that prices move in some sort of cycles: going from one level to another, it sometimes becomes in turns oversold and overbought. The Stochastic shows whether buyers and sellers can close the day at the reached highs/lows. Stochastic is a normalized oscillator, displayed in a separate window under the price chart and consisting of two lines: %K is fast and %D is slow. Values vary from 0% to 100%; at the levels of 20% and 80% signal lines are drawn. They single out the oversold (0-20%) and overbought (80-100%) areas. These areas are used for finding signals to buy and sell. Read more at R Blog - RoboForex Sincerely, RoboForex team
  22. RoboForex gives away $1,100,000 among its clients and partners Dear Clients and Partners, Join the promotion for $1,100,000 to celebrate RoboForex’s 11th birthday! Each month from July 2021 to April 2022, there will be a giveaway of money prizes among traders with Prime account, Partners, and CopyFX Traders with Prime accounts. Over 500 for the total of $1,100,000 will be given away over 10 months 54 winners each month The prize pool of each giveaway is $110,000. The prize pool of each giveaway is $110,000. Up to 3 chances to win You can receive one coupon in all three categories each month. Prizes up to $20,000 Your prize can be immediately withdrawn from the account or used in further trading. How to join? Receive Coupons for fulfilling the conditions below. You can participate in monthly giveaways and receive Coupons in all 3 categories. 1. Traders with Prime accounts Trade with the best conditions: spreads from 0, commission for the trading volume of 1 million USD decreased to 10 USD. leverage up to 1:300. Conditions for receiving a Coupon: Deposit at least 300 USD to your account. Perform at least 3* lots of trading operations per month. * - Only the positions in currency pairs and metals opened in the current month are taken into account Open Prime account 2. Partners Attract clients to trade and receive up to 60% of the Company’s revenue. Conditions for receiving a Coupon: Partner commission at month-end is at least 300 USD Become Partner 3. CopyFX Traders Earn on your strategies at CopyFX and increase your chances to win a prize. Conditions for receiving a Coupon: Make the Top-30 of the best CopyFX Traders on Prime accounts in the current month. Open CopyFX Prime account Join the offer right now, take part in as many giveaways as possible, and increase your chance to win. Good luck! More about the promotion > Sincerely, RoboForex team
  23. RoboForex adds 30 CFDs on Brazilian stocks to R Trader Dear Clients and Partners, RoboForex has expanded the list of trading instruments in its innovative R Trader web terminal by making 30 CFDs on Brazilian stocks available for trading with tight spreads and low commissions! The list of new instruments includes such companies as AmBev (ABEV3), Banco Bradesco (BBDC4), Itau Unibanco (ITUB4), Petrobras (PETR4), and Vale (VALE3). Conditions for trading CFDs on Brazilian stocks Commission – from 0.1% (but not less than 10 BRL).Spreads – from 0 pips.Leverage – up to 1:5.Trading time – from 4:10 to 10:55 PM (server time). In addition to that, RoboForex offers you to trade over 3,000 real stocks and CFDs on stocks of the largest American, British, German, French companies, and others. RoboForex clients have the opportunity to invest in shares of Netflix, Google, Amazon, receive dividends, and participate in corporate actions. 100 USD on your account will be enough to start investing. Start trading Stocks on competitive conditions right now! Read more about Stock trading > Sincerely, RoboForex team
  24. RoboForex: important information regarding NVIDIA stock split on July 20th, 2021 Dear Clients and Partners, On July 19th, 2021, NVIDIA Corporation (NASDAQ: NVDA) will have its stock go through a 4 to 1 split. A stock split is a corporate action, as a result of which the company increases the number of issued shares by a specific multiplier. The value of the portfolio consisting of these shares remains the same. How it will influence positions and orders? If you have open positions in NVDA or plan to open such positions, please pay attention to the following changes, which will be effective as of July 20th, 2021: MetaTrader 4 / MetaTrader 5 real accounts: All pending orders (Buy Limit, Buy Stop, Sell Limit, Sell Stop, Buy Stop Limit, Sell Stop Limit, Stop Loss, and Take Profit) in NVDA will be canceled before the trading session starts on July 20th, at 4:31 PM server time.The opening price for all positions in NVDA on the account active on July 20th, at 3:00 PM server time will be divided by 4.The volume of all open positions in NVDA on July 20th, at 3:00 PM server time will be multiplied by 4. MetaTrader 4 / MetaTrader 5 demo accounts: All pending orders (Buy Limit, Buy Stop, Sell Limit, Sell Stop, Buy Stop Limit, and Sell Stop Limit) in NVDA will be canceled before the trading session starts on July 20th, 4:31 PM server time.All open positions in NVDA will be closed before the trading session starts on July 20th. R Trader accounts The split procedure will take place on July 20th, at 3:00 PM server time During the split procedure, all active pending orders (Buy Limit, Sell Limit, Stop Loss, and Take Profit) in NVDA and NVDA.nq will be canceled.The opening price for active positions in NVDA and NVDA.nq opened before July 20th, 3:00 PM server time will be divided by 4.The volume of all positions in NVDA opened before July 20th, at 3:00 PM server time will be multiplied by 4.If you have at least two open positions NVDA or NVDA.nq in the same direction and on the same account, they will be combined into one new position. This new position will have the opening price and a volume based on an average weighted price of all open positions held before the split. Pay attention to Expert Advisors (EA) If you use Exerts Advisors, (EA), we recommend you contact the developers to make sure they will work correctly after the split. The historical charts of the above-mentioned instruments in your trading terminal will be updated to reflect the new prices. Please, take into account this information when planning your trading activity. All other aspects of trading conditions shall remain intact. Sincerely, RoboForex team
  25. How to Trade AUD/USD Currency Pair? Author: Victor Gryazin Dear Clients and Partners, AUD/USD means the Australian dollar vs the US dollar. It is one of For example majors. This article is devoted to factors influencing the dynamics of AUD/USD quotations and get to know trading methods that suit the pair. Some history Australia is a young land discovered by European sailors in the 1600-1700s. In 1770, an English sailor and traveller James Cook research Australia, thus beginning it's colonization by Britain. The first British colony on the continent New South Wales was founded on January 26th, 1788. This day later became a national holiday, the Australia Day. The Australian dollar, a decimal currency, went in circulation on February 14th, 1966, replacing the duodecimal Australian pound. The introduction of a new national currency was initiated by the CB - the Reserve Bank of Australia. The colloquial words for the AUD are Aussie and the Australian. The Australian dollar is a popular currency that makes up for 5% of global currency trades. Such popularity can be explained by a rather high interest rate in Australia, free currency market, general stability of the economy and political system. Trading characteristics of AUD/USD Trading characteristics of the pair are as follows: Trading time: the pair trades all day long except weekend but is more active during the Pacific, Asian, and American trading sessions. At the Pacific and Asian sessions Australia publishes important economic news that can influence the pair, while the activity at the American session is explained by the influence of the USD. The volatility of the pair is moderate, mostly showing moves of 50 to 70 points. However, in crises, when stock markets are falling, volatility can increase shortly to 100-200 points a day.Spread: the pair is a popular major, and thanks to high demand and liquidity, it has minimal spread. On popular ECN accounts, spread is normally below 1 point. Which factors influence the AUD/USD quotations? The dynamics of AUD/USD is some kind of an indicator that compares the US and Australian economies. Here are the facts that have the most influence in the currency pair. Monetary policies of the RBA and Fed The policies of the Australian and American Central banks have the biggest influence over the pair. If the RBA decides to start a series of interest rate increases, while the Fed will keep the rate at its usual level, the AUD/USD will have a stimulus to grow. And vice versa: an increase in the rates made by the Fed and the lack of such an increase at the Australian side starts a downtrend in the quotations. Read more at R Blog - RoboForex Sincerely, RoboForex team

⤴️-Paid Ad- TGF does not endorse any products advertised. 🔥 Advertise here.🔥

×
×
  • Create New...