Forex Blog

Quite some time ago, one of our forum members asked for an indicator to detect basing candles in MetaTrader. Today I present a new free indicator both for MT4 and MT5 — Basing Candlesticks.

It is a minimalistic indicator that compares the body size of the candle against its high-low range and, …

Our Market Profile indicator has received another major update today — version 1.13 implements the following changes:

Market Profile blocks (TPO’s) can now be colored according to whether the original bar is bullish or bearish in contrast to the bar being older or newer. This might be useful to quickly …

Disclaimer: I have received a free copy of sRs Trend Rider 2.0 for review, but I am in no way affiliated with Vladimir Ribakov.

sRs Trend Rider 2.0 is a trading system, which includes a set of expert advisors and indicators as well as an explanatory ebook. The main purpose of sRs Trend Rider 2.0 …

Version 2.22 of Position Size Calculator fixes two minor bugs and introduces three cool new features:

You can set the input parameter UseCommissionToSetTPDistance to true and then the Take-profit button will use the entered commission when calculating the TP line location:

If you leave …

If you want to be sure that your strategy can yield better results than you would attain by simply buying and selling randomly, you need to test it. There are two ways of doing it: backtesting (when you use past data to see how the strategy …

Apart from some bugfixes, the version 2.18 of Position Size Calculator contains three new features:

ATR-based stop-loss and take-profit are now a thing. If you prefer to set your SL/TP by the multiples of the Average True Range indicator, you can now do so automatically with

The new version of Market Profile, which has been released just now, implements two new major changes and two minor ones.

The first major change is that you can now control how the indicator processes Saturday and Sunday candlesticks. Before the update, it would try …

With ampler layout and lots of bugs squashed, version 2.15 of Position Size Calculator together with version 1.06 of PSC-Trader have been released today. The main goal of this update was to fix as many errors and inconsistencies in calculation and display as possible. The second goal was to add some of the requested …

Upon receiving quite a lot of feedback and suggestions on further improvement of the Market Profile indicator, I have finally managed to prepare the new version — 1.08. The latest build is now more robust than ever:

Smart color calculation prevents “overflows”, making the color of the profile’s blocks change smoothly and gradually.

The newest version (2.14) the Position Size Calculator indicator, which is released today, introduces a new way to set stop-loss and take-profit for your potential trade setups. You can set the new input parameters UseFixedSLDistance and UseFixedTPDistance to true to turn this new mode on:

The example …

This is not a new book, so the chances are you have probably already read it or at least read about it. The Quarters Theory: The Revolutionary New Foreign Currencies Trading Method was written by Ilian Yotov and published back in 2010, but I have got my hands on it only recently …

Locked-in Range Analysis: Why most traders must lose money in the futures market (Forex) is the name of the e-book by Tom Leksey. It teaches the Locked-in Range Analysis (LRA) method developed by the author. The book is available for free download in two languages — English and Russian.

The e-book was first published in 2017. …

Lehman Brothers was a titan of financial trading before going bankrupt in September 2008. In March 2010, Anton R. Valukas and his law firm Jenner & Block produced a 2200-page report on the company. It was used in the bankruptcy court hearings. Consequently, the report has been made public. Yesterday, …

Today, I would like to present a review of a research paper called Crowds, Crashes, and the Carry Trade. It was published by Valeri Sokolovski, a finance scholar at the Stockholm School of Economics. It was presented by Mr. Sokolovski at the conference called Exchange Rate Models for a New Era: Major …

This book was recommended to me by a fellow redditor from /r/Forex. Trade Mindfully: Achieve Your Optimum Trading Performance with Mindfulness and Cutting Edge Psychology is one of the books on trading psychology that provide valuable advice and actionable techniques. Another trading book of such a high quality level …

Although the field of trading psychology looks oversaturated at this stage, considering that we have such a jewel of the genre as Trading in the Zone by Mark Douglas, I would still like to share an e-book that offers an interesting approach to dealing with the psychological problems in trading. Enough to Be Dangerous is a very …

Japanese candlestick charts have become a staple trading tool since a long time ago. An Introduction to Japanese Candlestick Charting had been written by Erik Gebhard of Altavest quite some time before that (in the year 2000). Nevertheless, this e-book can still serve as a primer for newbie …

A necessary disclaimer: I have received a complimentary copy of the book from its author, so my review may be biased due to that.

Momo Traders: Tips, Tricks, and Strategies from Ten Top Traders is a book about successful day traders in stock markets. It was written by Brady Dahl and co-authored …

Reviewing an economics study paper that is 8 years old but is still relevant today is an odd experience. The Impact of Economic News on Financial Markets published by John C. Parker in April 2007 is a good example of such a document. John is an econometrician with nearly 40 years …

Elliott Wave theory is a popular topic in Forex trading — almost 20% of this blog readers use EW in their analysis. Last year, I have uploaded a book, which offers a new approach to achieve a definitive wave count in Elliott Wave analysis. Today, I bring to your attention another …

EUR/USD has formed a classical example of a double top pattern on its daily chart. It had started on about October 17 and had finished its development by November 5. The double top caps the corrective wave that had started back on October 1 inside a larger long-term downtrend experienced by the euro …

The bullish pennant pattern that has formed on the daily timeframe of GBP/JPY chart doesn’t look like a classical example of a bullish pennant. The pole of the pattern consists of several candles and lasts for almost as long as the pennant part. I believe that this doesn’t invalidate the trade setup offered by this formation. More important to me …

The uptrend in the pound vs. franc trading history is rather fresh if we look at the daily chart — it has started to rise just in August this year. After a brief correction that spanned from mid-September through the first decade of October, the pair rallied strong and is now consolidating inside …

The long-term downtrend seen on the weekly chart of the AUD/USD currency pair is extending since January 2018. Starting from late July 2019, the pair is consolidating in a formation that now resembles a double bottom pattern. A successful bounce from the second local low can lead to a strong upside wave with …

EUR/USD is trading in a clear downtrend if we look at the long-term charts of this currency pair. However, its 4-hour chart shows another picture — a recovery rally topped with a symmetrical triangle, which is a likely continuation pattern.

The borders of the triangle are the yellow lines. The cyan line is the potential …

GBP/JPY has been rising in an uptrend since January 3 flash crash created a deep spike on the daily chart of this currency pair. Lately, the rally stalled in a formation with two peaks, which closely resembles a double top pattern. The formation becomes valid only following a breakout below the pattern’s neckline.…

The US dollar has entered an uptrend against the Japanese yen on the 4-hour chart on January 31. On February 4, the currency pair began to consolidate inside a symmetrical triangle with a slight bias towards an ascending triangle. A successful breakout up from this pattern can serve as a tradable continuation signal.

The borders of the triangle …

Happy Holidays, traders! It is time to discuss my own Forex trading performance and ask you how your trades fared in 2018. I must admit that the year was a complete disaster for my chart pattern trading strategy. It started quite well with two nice profitable trades …

The previous EUR/USD symmetrical triangle formation was a long-term one — it lasted through the entire summer of 2018. The current one is a short-term one, having started just a month ago. Although the previous pattern failed as a trade, the currency pair indeed continued its downward trend. The current triangle offers …

The Canadian dollar has formed a symmetrical triangle pattern versus the Swiss franc, which is especially visible on daily timeframe. The pattern follows an upswing and suggests a continuation of the bullish trend in case of a topside breakout.

The borders of the triangle are marked with the yellow lines on the image below. My potential entry level is marked …

Asking traders about their losses due to minor accidental mistakes revealed that quite a lot of them lose hefty amounts of money. This would qualify as a major failure in my view. It is always difficult, both psychologically and economically, to recover from such failures. Exasperating the situation is that many …

Forex regulation is a hot topic among traders and when it comes to a discussion about whether to prefer a regulated or an unregulated broker, the word battles get especially bloody. Proponents of unregulated brokers are usually fond of unrestricted trading conditions (mainly, high leverage) and lower spreads…

The regulation of Forex brokers is one of the most discussed topics in trader communities. It is also a topic of considerable importance because the safety from non-trading related risks depends mainly on the supervising authorities. According to a poll we had a few years ago, the vast majority of our …

Except for the obvious sarcastic answer to the titular question that Instagram traders can make themselves rich by selling you signals, pitching worthless courses, or earning IB commission from brokers (or all this together), the issue at hand is rather serious and the answer to it is really important considering how widespread …

On July 31, the US Federal Reserve has announced a 25 basis points interest rate cut. At the accompanying press conference, the Fed’s Chair Jerome Powell hinted that this rate cut is not a start of some kind of a long-term dovish policy. However, according to the CME FedWatch …

About one third of this blog’s readers use economic calendars in their trading. Forex traders use calendars for many reasons — avoiding high-volatility market periods, keeping up with fundamental situation, high-impact news trading, or just out of curiosity. Each calendar provides a list of events, which are …

Price action (PA) analysis and trading focus on what the currency rate (price) does and its clean chart displays. Traders who employ PA methods use naked charts composed of bars or candles to find support and resistance (or supply and demand) zones and then work with them and the current changing price. Unlike …

Guessing the future of interest rate changes is never an easy process, especially in uncertain circumstances such as we have now. The current expectations for the US federal funds rate changes in 2019 are quite diverse — from a rate hike possibility according to the latest (as of April 29) projections materials released by the FOMC, to a hold …

There can be a lot of debate online on the topic of paid vs. free education, but in reality, most traders educate themselves with some kind of free informal education. This does not mean that the paid education is totally worthless or that traders that …

If you want to be sure that your strategy can yield better results than you would attain by simply buying and selling randomly, you need to test it. There are two ways of doing it: backtesting (when you use past data to see how the strategy …

Following our detailed infographic explaining the basics of VPS application in Forex trading, the IT specialists from Swiss Artmotion offer their own interpretation of the trading infrastructure problem. The infographic explains how the trader’s choice of server hardware (and software too) impacts the profits earned and lost. The main idea is that a meticulous …

Since my explanation of how VPS can enhance automated Forex trading was quite popular among this blog’s readers but lacked an easy-to-understand visual explanation, we have created this infographic. You can learn about hosting your MetaTrader expert advisors on a virtual private server in just …

The final piece of Forex infographics that is presented to you by EarnForex is the visualized statistics of the currency and currency pair popularity in Forex trading. Although London still hosts the largest volume of daily Forex transactions, the Great Britain pound is only 4th by popularity, the same as GBP/USD among the currency …

Despite the fact that the US dollar is the most popularly traded currency in the modern FX market, the worldwide leader for the currency trading is not the US but UK with its capital city of London. The presented infographics displays the geographical distribution of global Forex trading turnover. The data is from April, …

According to the latest reports, the Forex industry is growing rapidly. For a better picture of the current state of the foreign exchange market I’ve decided to create a set of infographics. The first one shows the global FX turnover along with the biggest participants — the financial institutions that provide liquidity to the retail Forex brokers. The data …

The regulation of Forex brokers is one of the most discussed topics in trader communities. It is also a topic of considerable importance because the safety from non-trading related risks depends mainly on the supervising authorities. According to a poll we had a few years ago, the vast majority of our …

This is another post about one of the many Forex scams being run by unscrupulous individuals online who are taking advantage of unsuspecting victims with lofty promises of guaranteed profits from the Forex markets.

The US Commodity Futures Trading Commission (CFTC) announced on August 9, 2019, that …

On July 19, 2019, the Commodity Futures and Trading Commission (CFTC) announced that Kelvin O. Ramirez had been fined over $2.9 million for soliciting money from clients using fraudulent claims and then embezzling the money instead of trading FX on behalf of his clients as he had promised.

Ramirez …

Forex traders and professional investors in general would be well aware of the numerous currency trading related scams that are being unearthed every year. While the underlying principle behind a Forex scam is always the same – to prey on greed – the modus operandi changes according to the circumstances. In the recent …

The tactics employed by the perpetrators of investment frauds had undergone little change in the past century. However, there is no dearth of unsuspecting investors who fall prey to such Ponzi schemes. The reason is that crooks have a clear understanding of the human psychology. Whileon Chay, a New York resident, is one …

Unlike other financial markets, the Forex market has very little legal and capital restrictions. Thus, it is a blessing for a beginner who lacks financial strength. However, con artists misuse the FX market for their personal gains. Thus, it is a must to scrutinize the schemes related to the foreign exchange trading. …

A conservative estimate of the amount lost by the American public, between 2008 and 2014, in Ponzi investment schemes stands at $50 billion. The estimated value does include the sum ripped off by con artists through stock, real estate, and commodity schemes as well. However, the majority of the investors lost their hard-earned money in Ponzi …

We continue our series about the notable Forex scams with an article about an enterprise called Botfly LLC, which operated from 2005 through 2010.

In a calm state of mind, a close look at the promotional materials of any scammer will quickly reveal to any layman that the offer is too …

The Forex market stands apart from other financial markets in terms of liquidity, capital requirements, trade timings and leverage. However, much like other businesses, scammers do operate in FX markets as well and always look for an opportunity to prey on unsuspecting investors. Even though authorities continue to expose extensive and long-running Ponzi …

After almost five years break, I am continuing the series about most famous Forex scams. Today, the story goes about a guy named Danny Wall and his fraudulent educational and money management facility.

Forex trading can be a great way to earn money — if you understand how …

Many think of bitcoin as an investment and rightly so, it has grown from being worth fractions of a penny to being worth hundreds of dollars in a few short years. Price fluctuations have made it a popular commodity to trade both in the futures market and in real time. Bitcoin now easily surpasses $100 …

You might already know how to copy input parameters for a single indicator across different charts and platforms. You also might have mastered the power of copying the whole account profiles from one MetaTrader instance to another. However, sometimes, what you need is just to copy one chart — …

Many MetaTrader users are struggling to work with indicators on multiple charts. They pose a reasonable question: “Is there a way to save indicator input parameters from one chart and easily load them on another?” The answer is: “Yes, it is definitely possible!” Traders often ask me about …

Originally, I intended this post as a do-it-yourself guide on how to add alerts to MetaTrader indicators without knowing how to code at all. But writing it, I came to realization that even if a trader knows nothing about MQL language and coding he will have to learn some basics through this …

If you have thought that trading based on the accurately calculated position size cannot get any better, think again. Now you can use a MetaTrader script to place orders based on the calculations of the Position Size Calculator indicator. The script will detect the position size calculated by the indicator …

There are two different ways to get price alerts in your MetaTrader Forex trading platform. The first one is to use the built-in Alerts system. The second way is to use the special Price Alert indicator. The former is much simpler and more customizable, while the latter allows setting visual …

Update 2016-05-09: This tutorial is now obsolete. Please refer to MetaTrader Indicators — User’s Tutorial for MT5 indicators installation instructions.

This tutorial covers only MetaTrader 5 indicator installation. If you need info on MetaTrader 4 indicator installation, please, refer to my previous tutorial…

Sometimes, it is necessary to copy all your MetaTrader chart settings to another PC or save them while you are reinstalling Windows on your current PC, or in cases when you are moving to a new broker and have to …

Trailing stop allows you to automatically protect the profits with your positions. It adjusts itself according to the current market rate and the amount of pips you give it to trail behind. Trailing stop is a great tool for the conservative and long term traders as it easily creates protective «airbag» for the trades. There are two basic ways …

Update 2016-05-09: The tutorial has been completely revamped to reflect the most current and easiest way to install new indicators in MetaTrader — both MT4 and MT5.

This tutorial covers indicator installation for MetaTrader 4 and 5. Since MT4 Build 600, there is no difference in the way it is done in the two …