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[Vlad RF]

Crypto Market Is Ready to Burst in 2020

Author: Anna Rostova

Dear Traders,​

2020 for the crypto market is a time of a quality breakout, or at least this is what the users and market participants are expecting. Below, we will discuss some of the expected events and changes.

What will happen to the Bitcoin (BTC)?

The year 2020 will be crucial for the leading cryptocurrency. In May, the reward for mining will be decreased by 50% at once, amounting to 6.25 BTC instead of 12.5 BTC now per mined verified block. This event can change the whole picture of mining.

In 202, the BTC will go on spreading among users. Its market share will amount to 60-70%, which will make it stronger and more expensive. In our case, this is a positive factor for the BTC price.

Another supporting driver of the BTC price is the extension of the Lightning Network system. This system optimizes the decentralization process, letting introduce it in applications and the principles of payment execution. Automatically, this will free the Bitcoin from the long-time market claim that the BTC has no more room for development.

Forecasting the BTC price for a year is useless: the market is too volatile and prone to fluctuations. However, it must remain between $7,500-$15,000.

Libra: how will it settle?

In 2019, Facebook caused a lot of worries to the crypto world, but its crypto project was not launched after all. No one is sure that in 2020 Libra will appear on the crypto market, because Facebook is aiming, in fact, at rivalry with the US dollar. The US government got scared and hindered the launching process.

In the first half of 2020, Facebook will discuss the future of Libra with the regulator. The project will function if the government allows it. The potential of the project is huge, so the caution of the politicians and the greed of the users is understandable. Libra is a new phenomenon on the crypto market, and its appearance may be earthshaking.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

Trader's Checklist for Successful Trading

Author: Andrey Goilov

Dear Traders,​

For successful work on financial markets, it is important to collect a set of rules that will help think soberly in any situation and stick to one's trading system. Most often, traders draft a plan on paper for no steep movements on the market to make them turn away from their goal. What is more, experienced investors advise to make a sort of a checklist with several questions, the answers to which will show if the time is good for opening a position or the trade is better skipped.

Why should I plan my trading?

It has been proved in practice that most mistakes and losing positions emerge in situations when the trader tries to act intuitively and avoid stocking to their own rules.

For example, the trader has chosen the Head and Shoulders pattern for trading but it does not appear on the market for a long time, and they decide to enter a trade on a breakout of the support line. As long as they used to trade only one pattern, the trade might be compromised.

Of course, such a loss depends only on the trader and their devotedness to their rules. That is why planning and sticking to the plan is so important.

How to create the checklist?

For example, if we return to our Head and Shoulders pattern, we have several rules for the pattern to form.

The neck must head along with the movement, the right shoulder must be no higher than the left one, which will signify the weakness of the current trend. Then, we may pay attention to the fact of whether the pattern complies with the trend from D1; and finally, we must evaluate the risks for the deposit.

Based on the data above, we can create a checklist for trading Head and Shoulders patterns; the answers will help decide upon the fate of your open positions. You should remember that questions can be created for any system you work with.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex: changes in trading schedule (Martin Luther King Jr. Day)

Dear Clients and Partners,​

We’re informing you that due to the public holiday in the USA, Martin Luther King Jr. Day, on January 20th 2020, several instruments will be traded according to the changed schedule*.

RoboForex

Trading schedule on CFDs on US indices (US30Cash, US500Cash, USTECHCash), Metals (XAUUSD, XAGUSD), CFDs on oil (Brent, WTI)

• January 20th, 2020 – trading stops at 7:45 PM server time.
• January 21st, 2020 – trading starts as usual.

Trading schedule on CFDs on US stocks

• January 20th, 2020 – no trading.
• January 21st, 2020 – trading starts as usual.

R Trader

Trading schedule on US stocks and US ETFs

• January 20th, 2020 – no trading.
• January 21st, 2020 – trading starts as usual.

Trading schedule on CFDs on US stocks

• January 20th, 2020 – no trading.
• January 21st, 2020 – trading starts as usual.

Trading schedule on CFDs on US indices (US30, US500, NAS100)

• January 20th, 2020 – trading stops at 7:45 PM server time.
• January 21st, 2020 – trading starts as usual.

Please, take into account these changes in schedule when planning your trading activity.

* – This schedule is for informational purposes only and may be changed by the provider.

Sincerely,
RoboForex team

 

[Vlad RF]

Building Algorithmic Trading Systems: 2 Main Approaches, Testing, Tools

Author: Timofey Zuev

Dear Traders,​

The major components of an algorithmic trading system are research tools, performance, ease of development, resiliency, and testing, separation of concerns, familiarity, maintenance, source code availability, licensing costs, and maturity of libraries. Before deciding on the "best" tool, which to write an automated trading system with, it is necessary to define the requirements:

1. What will be the frequency of trading and the likely trading volume?
2. Will the system require risk management or portfolio construction module?
3. Will the system require a high-performance backtester?

Traders, who require more custom-built and complex systems, might need to look at using C#, Matlab or Python, but I would say for the other 95% of day traders Algorithmic Trading Software will suffice.

1 - Compute in Python, Matlab, C#

In this case, programming skill is an important factor in creating an automated algorithmic trading strategy. Being knowledgeable in a programming language, such as Python or R, will enable you to create the end-to-end data storage, backtest engine and execution system yourself. It allows you to explore the higher frequency strategies as you will be in full control of your "technology stack". While this means that you can test your software and eliminate bugs, it also means more time spent on coding up infrastructure and less on implementing strategies, at least in the earlier part of your algotrading career.

The basic workflow is the following:

• An algorithmic trading strategy feeds market data (historical or live) into a computer (backtest or automated execution) program.
• The program then submits orders to a broker through an API and receives order status notifications back from the broker.

MATLAB and Python have been my favorite backtesting platforms. It has a very comprehensive and user-friendly interface for developing and debugging programs, and it has a wide array of toolboxes that cover almost every arcane mathematical or computational technique you will likely encounter in trading strategy development.

Picture: import of historical data from Yahoo Finance to Python

Picture: the process of algorithmic trading​

2 - Algorithmic Trading Software. No coding skills

The second approach is algorithmic tools, such as Multicharts, StrategyQuant, or R Trader Strategy Builder (free and easy to use, cloud-based), and many more.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Catch a Trend Reversal? 5 Detection Strategies

Author: Andrey Goilov

Dear Traders,​

Experienced traders think it much more efficient to trade the trend than against it. Many of you must have heard such expressions as "The trend is your friend" — such sayings are plenty. At the same time, the desire to reverse the market may be provoked by merely the possibility to enter the market at the very beginning of the trend with minimal risks. So the desire to buy at the low and sell at the high is also rather understandable.

Again, one of the set phrases of tech analysis goes: "The current trend will be developing until it reverses". It pushes us to the idea that every trend will finish and reverse sooner or later. In this article, we will learn to detect such reversals.

What is a trend and where does it reverse?

On financial markets, a trend is a directed price movement. In theory, when we see a movement with each next high being above the previous one, as well as each next low being above the previous one, we can speak about an uptrend. At such moments, traders try to buy as the current movement is likely to continue and thus change its direction.

Hence, if we expect a bullish trend to reverse, it is important for us that the next high became below the previous one, as well as the next minimum. At such a moment, we may suppose a trend reversal downwards. Here, we may start thinking about selling the instrument.

On the contrary, if in a price movement we see each next low and high below the previous one, we call this a downtrend. As for the reversal of such a trend, it is important that the next low was not renewed, and the price broke the high; this is a simple signal of a trend reversal.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

CopyFX for Investor: How to Use? How to Choose Traders?

Author: Victor Gryazin

Dear Traders,​

In this article, we will discuss how to become an investor on the popular copy-trading platform CopyFX. The platform allows you to make a profit on trading on financial markets, using the experience and skills of professional traders who demonstrate high results in trading.

Opening a trading account

To invest on CopyFX, you need to open a trading account on MetaTrader4 via your Personal Members Area on the RoboForex website. The following account types suit for investing: Pro-Cent, Pro-Standard, ECN-Pro, Prime, and Pro-Affiliate. The system of cross-copying allows for the correct connection of various account types of traders and investors.

However, if the trader and the investor have different account types, the results of trading may vary slightly due to the difference in the conditions of trading. The size of the spread, the broker fee, the leverage or the number of available instruments may differ. If the trader's instrument is unavailable on the investor's account, the trades will not be copied.

For exacter copying, it is better to open a type of account with a maximal number of instruments available and the biggest leverage. If you are interested in investing only, you can avoid installing the MT4 terminal: with an active subscription, the trades are copied automatically, the statistics of the copied trades are reflected in the PMA. You can use copying in addition to your own trading on the account — the trader does not get any fees for the trades that the trader carries out themselves.

Choosing a trader from the rating

To compare and evaluate the work of traders, there exists a special instrument called the rating of traders. In the rating, the main statistics of the traders' work is reflected, helping investors make their choice for the subscription. The rating is available in the PMA and on the CopyFX website.

Each trader has a personalized participant card accessible from the rating. To choose a trader, the following basic parameters are to be assessed:

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex arranges all security settings into a single module

Dear Clients and Partners,​

RoboForex has updated the arrangement of Members Area security settings. From now on, our clients can manage security settings from the profile page, which displays all methods of securing their profiles. In addition to that, thanks to this innovation, changing security settings will be more convenient and less time-consuming.

On a new page, our clients can specify convenient settings and secure their Members Area by means of:

• Verification of their mobile phone number.
• Enabling two-factor authentication:
  1. Via application on their smartphones.
  2. Via SMS code (in this case, a mobile phone number must be verified).
• SMS notifications about logging in to Members Area each time it is attempted to be accessed. In this case, our clients will be able to take immediate measures in case their profiles are accessed behind their backs.

​

Sincerely,
RoboForex team

 

[Vlad RF]

How Does the Fractals Indicator Work: Description, Settings

Author: Andrey Goilov

Dear Traders,​

The Fractals indicator was designed and popularized by Bill Williams, the author of one of the most popular trading systems and the book "Trading Chaos". This instrument is a technical indicator that allows to detect local extremums on the chart. A breakout of these levels may provoke a good future move in their direction. The author recommends using Fractals with the Alligator indicator; however, there are methods of trading with Fractals that are far from the classical author's ideas.

Description of Fractals

For the indicator, we use five candlesticks, the third candlestick in the combination should have the highest high or the lowest low. If there is such a formation on the chart, the indicator shows narrow either above the candlestick or below it.

For example, if we are speaking about an ascending fractal, to define it, we need to see on the chart a minimum of five candlesticks following one another, with a lower candlestick at each side of the highest one. Conversely, for a descending fractal, here it is important to see a minimum that will be among four other candlesticks with higher minimums.

The author notes that for a fractal, we do not need five candlesticks exactly, there might be less. However, the five-candlestick combination has become most popular in modern trading.

One of the important advantages of the indicator is the possibility to mark important support and resistance levels. Many traders just add Fractals to the chart and work with breakouts of the levels or try to combine it with graphic patterns.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[RoboForex]

What are Fibonacci numbers?
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Do you want to learn more about currency markets? Watch tutorial videos on our website at – https://go.rbfx.com/23m
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The Fibonacci numbers are a sequence where each number is the sum of the two preceding ones. The sequence starts from 0 and 1, and then continues endlessly (0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 ...). At the same time, the ratio of two consecutive numbers tends to the golden ratio, which is 1.618.
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The Fibonacci numbers can be observed in laws of nature and are widely applied in geometry, architecture, art, and other aspects of human beings’ existence. Trading, being one of these aspects, also stepped in. As soon as traders noticed that fluctuations of financial asset prices are often similar to the Fibonacci sequence, they started using it for predicting price movements on financial markets. This is how a set of Fibonacci tools for technical analysis appeared in MetaTrader 4.
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As of today, there are 5 well-known tools based on the Fibonacci numbers: Arcs, Fan lines, Correction Time zones, and Expansions. Levels that match them are often called support or resistance areas.
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Trading on Stocks/ Forex/ CFD markets involves high risks and you can lose your entire deposit.

https://www.facebook.com/RoboForexCom/photos/a.421576764569119/2991482240911879

 

[Vlad RF]

CopyFX For Traders: How To Make Money On The Platform?

Author: Victor Gryazin

Dear Traders,​

In this article, we will discuss, how a trader can make extra money on a popular copy-trading platform CopyFX. The CopyFX platform allows demonstrating your expertise and attracting subscribers who copy your trades.

How to become a CopyFX trader?

If you are a successful trader who want to increase their income by attracting investors, the CopyFX platform will provide you such an opportunity. Investors will evaluate the statistics of your trading and the subscription conditions in the rating and decide if they want to copy your trades.

Having become a CopyFX trader, you will be able to keep trading by your chosen strategy, receiving extra fee or percent of the trades that your investors copy. Thanks to the built-in automatic cross-copying system, the trades will be copied correctly even if the trader and the investor have different account types.

To start working, the trader needs to open an account (or accounts) in the CopyFX system and trade, showing good results. The account is opened via your Personal Member’s Area: on the page for opening an account you choose a CopyFX account, For trading, the following account types are suitable (MT4 platform): Pro-Cent, Pro-Standard, ECN-Pro, Prime, Pro-Affiliate and ECN-Pro Affiliate. After the account is opened, it must be deposited for no less than $100 (or the same sum in another currency), and the subscription conditions must be set up.

How to set up subscription conditions?

After the CopyFX trading account is opened and deposited, setting up subscription conditions follows.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex joins the ranks of brokers with more than 20 awards

Dear Clients and Partners,​

It’s been more than once that we told you about prestigious awards of the financial industry received by our Company. Over the years, RoboForex has been recognized as the best stock and crypto broker, the fastest and fastest-growing broker, while international experts have acknowledged a consistently high level of the Company’s investment products a number of times.

At the end of 2019, RoboForex received new awards from the International Association of Forex Traders (IAFT) in the following categories:

• The best broker of the CIS.
• The best investment platform.
• The best educational Forex-center in CIS.

Together with these awards, the total number of titles owned by the Company has reached 20 and this achievement is very essential to us. However, what is even more important to us is the fact that thousands of traders all over the world have been favoring RoboForex as their partner for more than 10 years. We highly appreciate your attention and are very thankful for your choice.

​

Sincerely,
RoboForex team

 

[Vlad RF]

How does Pump and Dump Strategy Work? Discussing the Examples

Author: Eugene Savitsky

Dear Traders,​

In order to make money on the stock market, a trader must either have patience or a trading system. Patience makes the most of the money on the stock market. The only thing a trader must do to receive profit is to buy stocks on several different companies (for risk diversification) without the leverage, with dividend payouts if possible, and hold them until there is a wish to take profit.

Stocks portfolio at Finviz.com

I’ll show a simple example. At Finviz.com, you can create your own demo stocks portfolio with the information on the time of purchase and the current profit. In 2013, which was almost seven years ago, I wanted to know what kind of money I could make by buying stocks and holding them for a long time. so, I created my demo portfolio and forgot about it.

At that time, I was choosing stocks on some kind of principles I had. Finally, I bought one share of Delta Airlines (NYSE: DAL) at 56.79 USD and и 4 cheap shares that cost less than 20 USD each. By now, the portfolio profit has exceeded 48,000 USD. However, at some moments the portfolio value was more than 100,000 not including dividends.

Thereby, taking into account purchasing prices in 2013, 43,258 USD were invested in these shares, which makes the average annual yield 16% and that’s much more than the yield of any bank deposit calculated in USD.

Pump and Dump strategy

When it comes to a trading strategy, it’s much more complicated. There are a lot of different trading systems: some of them make a profit on trend markets, while others – during “dead season”. Some people trade at level breakouts, while others do the opposite. However, in all these systems, periods of profit are followed by periods of losses. As a result, each of these systems requires some particular market conditions, when they will ear profit.

But today we’ll talk about one of the systems, which doesn’t depend on the market environment, the country’s economy, crisis, or something like that. This trading system has always been and will always be efficient as long as trading operations on the stock market are performed by a man.

This trading system is based on nothing but human greed and wish to make a fast buck. And you know, the greed will always follow the money.

The trading system’s name is Pump and Dump.

Example with NanoViricides Inc

So, pay attention to NanoViricides Inc (NYSE: NNVC) stocks. Until the middle of 2019, the average traded volume didn’t exceed 50.000 shares per trading session, while the trading range was between 1 and 3 USD per stock. However, in only a month, the daily traded volume skyrocketed up to 4.4M shares per trading session and in 4 days it was more than 33M shares. And this was happening to the company, the capitalization of which was less than 32M USD with only 17 people on the staff.

For a better understanding of the volume growth rate, let’s compare it with a famous car manufacturer, Ford (NYSE: F), shares of which are also not very expensive. The average traded volume in Ford is 35M shares, but its capitalization is 35B USD and the staff includes 199,000 employees. Sizes of these companies are way too different, but the traded volume of shares is almost the same.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex: changes in trading schedule (President’s Day in the USA)

Dear Clients and Partners,​

We’re informing you that due to the public holiday in the USA, President’s Day on February 17th, 2020, several instruments will be traded according to the changed schedule*.

RoboForex

Trading schedule on Metals (XAUUSD and XAGUSD), CFDs on US indices (US500Cash, USTECHCash, US30Cash) and oil (WTI, Brent)

• February 17th, 2020 – trading stops at 7:40 PM server time.
• February 18th, 2020 – trading starts as usual.

Trading schedule on CFDs on US stocks

• February 17th, 2020 – no trading.
• February 18th, 2020 – trading starts as usual.

R Trader

Trading schedule on US stocks and ETFs

• February 17th, 2020 – no trading.
• February 18th, 2020 – trading starts as usual.

Trading schedule on CFDs on US stocks

• February 17th, 2020 – no trading.
• February 18th, 2020 – trading starts as usual.

Trading schedule on CFDs on US indices (US500, US30, NAS100)

• February 17th, 2020 – trading stops at 7:40 PM server time.
• February 18th, 2020 – trading starts as usual.

Please, take into account these changes in schedule when planning your trading activity.

* – This schedule is for informational purposes only and may be changed by the provider.

Sincerely,
RoboForex team

 

[Vlad RF]

Real Case: How I Earned 1427 USD in 10 Days on Cheap Stocks Using Pump and Dump

Author: Eugene Savitsky

Dear Traders,​

Today, we will look a bit away from analytics and speak about the market and the situations that the trader may find themselves in, working by the Pump and Dump system. In more detail, you can read about trading by the Pump and Dump system in my previous article.

About Pump and Dump

I would like to note that the market is quite loyal to the traders using this system. Well, in fact, the traders who trade at a decline, restore the balance of the stock price. It is just important to choose the stocks for trading responsibly, analyzing the financial situation of the company and its perspectives of growth.

Of course, some young developing companies may not be profitable from the start. Earlier, Tesla (NASDAQ: TSLA) was also one of such companies. Many stockholders wanted to sell Tesla stocks because 7 years after the IPO the company kept suffering losses and no one believed it could reach its current level. However, in this circumstances we must realize that the money the company received was spent on increasing production and its own development, while the demand for electrocars kept exceeding production. That is why it is very risky to take a short position with such stocks at the start.

Plus Therapeutics: 1427 USD in 10 days

I am going to tell you about my experience in trading by the Pump and Dump strategy, when I ignored the rules and admitted an early entry to the position.

In the summer 2019, the Screener on the Finviz website showed me the stock of Plus Therapeutics Inc. (NASDAQ: PSTV). This company invents medicines for cancer treatment and other diseases. On August 15th, a report for the 2nd quarter of 2019 was published; the company’s management voiced its readiness to present the protocol of the second stage of clinical trials of the DocePLUS medicine in the second half of 2019. The management was looking for partners for the promotion of the new medicine.

On the one hand, the company remained losing, though the losses decreased, and the new medicine could bring them a profit. That is why I did not risk opening short positions; instead, I decided to watch the situation and the reaction of other traders to the news. Also, I paid attention to the behavior of the stock earlier. Note that almost all situations of steep price growth ended up in even steeper declines.

The situation in question was no exception. Two days later, the stock was trading 50% lower than their extremes. I thought I had missed a good opportunity but 5 days later the stock of this company reappeared on the Screener, and I realized I was to use the situation.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex adds new assets and analytical tools to R Trader

Dear Clients and Partners,​

We’ve added more than 500 new assets and updated analytical tools of our multi-asset trading terminal R Trader.

More about new features in R Trader:

• More than 500 CFDs on stocks of European companies
  More than 500 new CFDs on stocks of companies from 11 European countries, such as Volkswagen, Peugeot, L'Oreal, Orkla, and Nokia are now available in R Trader.
  
  
• Tick charts
  Analyze “market pulse” by means of new tick charts that show the slightest fluctuations of the chosen asset price.
  
  
• Updated Watchlists
  A new feature in Watchlists: tracking updates in “Тоp Gainers”, “Top Losers”, “Top Volumes” with 5-, 30-, and 120-minute intervals.

More detailed information about all instruments and features can be found on the platform’s page. We’re actively continuing to upgrade and improve our R Trader trading terminal, so follow the news!

​

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex offers its clients access to bank transfers via SEPA and SWIFT

Dear Clients and Partners,​

RoboForex has expanded your opportunities of operations with trading accounts. From now on, you can deposit and withdraw funds by means of bank transfers via SEPA and SWIFT systems.

Benefits of international bank transfers

SEPA
is a system, which operates in the European Economic Community and allows to quickly transfer funds between different accounts in EUR without any additional fees.

SWIFT
helps you to easily command your finance and make transfers between accounts in different banks all over the world in currencies that are convenient for you.

Join the global financial community and explore new opportunities together with RoboForex!

​

Sincerely,
RoboForex team

 

[Vlad RF]

Catch Your Smash Day with Larry Williams

Author: Victor Gryazin

Dear Traders,​

In this article, we will discuss the trading methods of a famous exchange trader Larry Williams. His expertise is confirmed by his victory in a prestigious world futures championship Robbins World Cup with a phenomenal result — over 11000% profit in a year.

How to trade a Smash Day?

The Smash Day trading pattern by Larry Williams suggests that the current impulse of the price movement has a higher possibility of a reversal after on the chart, there appears a highly volatile day closing above/below the last extremes. Such a trading day is called "smash" (or reversal) because it precedes a change in the current price direction.

When a Smash Day forms, the market leaps up- or downwards, closing behind the previous highs/lows. At this moment, all the traders that were late for market entry try to catch the last train, counting on the continuation of the movement. However, their hopes will not come true if the next day the price goes in the opposite direction and forms a Smash Day reversal pattern.

A Smash Day to buy

This is a day of increased volatility in a descending price movement that closes below the low of the previous session. Such a day can cover up the lows of the previous 3 to 8 days. If the next day the price starts moving in the opposite direction and renews the high of the Smash Day in the end — you can open a position to buy with an SL below the low of the Smash Day.

This is a reversal pattern but you may not necessarily trade a Smash Day counter a strong trend. To my mind, it is perfect when this pattern finishes a correction to an uptrend. For example, if the daily trend is ascending, there is a descending correction on H1 or H4, finished by a Smash Day to buy. When the correction is over, we open a position to but in the direction of the main (daily) uptrend.

A Smash Day to sell

Same with the previous one, this reversal pattern forms when there emerges a day of increased volatility on the market — in an ascending price movement this time. The day is closed at the top of the trading range above the previous high. The next day, the price starts going down actively. After the minimum of the Smash Day is renewed, we open a position to sell, with an SL behind the high.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Trade Support and Resistance Levels

Author: Andrey Goilov

Dear Traders,​

Horizontal support and resistance levels are at the base of classical tech analysis. Many traders despise such a simple instrument and avoid spending their time on studying the basics of graphic analysis. However, the influence of the horizontal levels on the price movements is hard to deny.

Any trend is a sequence of support and resistance levels, so we can see tests and breakouts of such important areas every day. I recommend paying attention to this aspect of analysis and studying this instrument to be able to detect these levels.

Putting it very simply, near the support level you should buy while at the test of the resistance area, you should sell.

What is the support level?

In theory, a support level is an area below the current market price where the players can buy; this area is highly probable to remain under the pressure of sellers. T the moment of testing the support level, the prices push off it and start growing; hence, the pressure from sellers shrinks as they cannot secure under the level to continue the decline. We can say that buyers are stronger.

As a rule, such levels can be detected on the chart beforehand. We can use both the daily and hourly charts. However, experienced traders say that longer timeframes are more important. For example, a support level on D1 will be much stronger than the support level on M5.

On D1, the prices can be testing the support level for weeks before the bears manage to push the price down. As for M5, one test may be enough to secure below this level and move to the next one.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

How to Trade Trendlines?

Author: Andrey Goilov

Dear Traders,​

Trendlines pertain to classic tech analysis. Many traders add such lines to their strategy, using them not only on the price charts but also on the indicator graphs. We can say that a trendline is one of the simplest instruments used for chart analysis. At the same time, regardless of its simplicity, this instrument is highly efficient.

Trendlines can show where to enter in the direction of the trend and where the current trend might end. The analysis of the price chart itself is a good advantage: there is an opinion that signals from the indicator are lagging, and it is the price that is of special importance. However, we must keep it in mind that all trading options must be customized, and various ways of using both graphic analysis instruments and indicator signals should be tried.

Ascending trendline

An ascending trendline is a line drawn through the lows from left to right. The second low must be higher than the first one. To draw the line, two points suffice.

Many authors single out the third point as the confirmation that the trendline has been drawn right. However, at the moment when the price touches the line, many traders try buying already, not waiting for the confirmation. As a rule, buying at a bounce off the trendline always happens with a small Stop Loss, so the risk is not that high. That is why most traders somewhat neglect the confirmation.

As an example, let us look at the trendline on the chart of the Litecoin. To draw it, we take two marginal lows and draw a line through them. It is important to extend the line to the right so that we could see the moment of testing this line by the price. In our example, at the moment of testing the trendline, the price bounces and goes on growing. We can say that the uptrend continues until the trendline is broken.

Descending trendline

A descending trendline is drawn through highs. To draw it, we need two points on the chart, the second one being lower than the first one.

Here, we should also remember that it is wise to wait for the third line to form and confirm that the descending trendline has been drawn right. Anyway, we should remember that drawing trendlines is an art and thus subjective. That is why different traders can draw different lines that are important to them. The more experienced the trader is, the better they draw the lines.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

 

[Vlad RF]

RoboForex increases the maximum order volume on the Company’s trading accounts

Dear Clients and Partners,​

RoboForex has increased the maximum available order volume values. Changes are effective as of February 28th, 2020 and will be applied to MT4/MT5-based accounts.

The maximum order volume has been increased for all instruments:

• Standard accounts (Pro-Standard, ECN-Pro NDD, Prime) - 500 lots.
  
  
• Cent accounts (Pro-Cent) - 10,000 lots.

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Sincerely,
RoboForex team