Author: rcanessa - Page 30

What is the stop hunting?

Stop hunting is called the practice that consists in forcing the positions of retail traders, causing a movement in the price action, up or down, until the price reaches the levels where stop-loss orders have been placed. This leads to stop losses being executed in such a way that retail traders are expelled from the market while another investor benefits from it. It is a strategy used mainly by large financial institutions that have enough capital to buy and sell and influence market prices.

The fact that traders place their stop loss levels at key points such as supports or resistances, relevant moving averages, Fibonacci levels, or integer figures, allow the stop hunting to be carried out.

In other words, the large market participants extend the price considerably with the sole purpose of activating the automatic protection closures (Stop Loss Orders) of retail traders.

Exotic Financial Options

by rcanessa

What are exotic options?

The OTC markets (Over The Counter) are a constant source of financial innovations that are trying to adapt the characteristics of the different instruments to the specific needs of hedge of different economic agents such as traders. In the case of financial options, one of the most interesting innovations that have emerged in recent years is the exotic type, which can be subdivided into four types:

Compound options or options on options.
Options with dependent value on the historical evolution of the underlying asset (path-dependents).
Conditional Options.
Options based on several underlying assets.

Risk Free trading – dealCancellation of EasyMarkets

by rcanessa

The Forex and CFD broker EasyMarkets (regulated by ASIC and CySEC) now offers a new tool called dealCancellation, which allows its clients to carry out risk-free trades. With this resource, the client can cancel his losing transactions up to a maximum of 60 minutes from the moment the position is opened. In other words, with dealCancellation it is possible to cancel a losing trade that was opened in a period of less than one hour and get back any loss incurred.

The dealCancellation tool can be applied under the following conditions:

When the trader feels insecure about market conditions and considers the result of his trades to be uncertain.
During major market events, such as the publication of important economic indicators or announcements such as Non-Farm Payrolls, where the market presents excellent opportunities to obtain great benefits but the level of risk is also very high.
During periods in which the market has higher levels of volatility than normal, in which it is more difficult to predict the behavior of prices, and risks are higher.
When the trader performs transactions in which he is trading with higher volumes than normal. In these transactions, a trader can apply dealCancellation to limit the risk and avoid large losses in case the market moves against his position and at the same time have the opportunity to obtain higher profits with high volume trades.

– Period of validity of the promotion: This promotion has no deadline as it is an active service of the broker EasyMarkets for all its customers.

Custom Pin Bar Indicator for Metatrader 4

by rcanessa

The Pin bars are candlesticks or patterns composed of a single candle that can be formed in any market and time frame, both short and long term. When these candlesticks appear they offer price action signals as trend change patterns that indicate that there is a possibility that the price direction changes, at least temporarily. Of course, like any candlestick … Read more

Channel breakout system with retracement for Forex

by rcanessa

This trading system was primarily designed to trade in extended time frames (4 hours later). It is based upon the breakout of a dynamic price channel which is calculated through the highs and highs of the price bars. In this sense, the strategy seeks to enter the market after two events occur:

The bullish or bearish breakout of the price channel.
A retracement movement of the price after the channel breakout. After this setback, the trader must open a position in the same direction as the breakout.

Alpari Broker Review 2022 – Detailed Analysis on Alpari

by rcanessa

Alpari – ECN/STP broker from Europe specialized in Forex and CFD -Tight spreads and low commissions Visit Broker Website Alpari – Forex Broker Review Alpari is one of the best and most famous brokers in the Forex industry due to the variety of trading services that offers to clients around the world. Also, it is a regulated broker that operates … Read more

How to use stop loss orders? – Definition and main uses

by rcanessa

The stop loss is a trading order placed in the broker to sell or buy a currency pair (or any other asset in a financial market) conditioned on the price reaching a certain value. It is mainly used to close an open transaction in case the price direction turns against it, hence its name. For example, if we have a buy position in the EUR/USD and put a stop loss at 50 pips below the entry price, our possible losses in case the price falls will be limited to 50 points (see how to calculate the value of a pip).

Trading Strategy with Supports, Resistances and Stochastic

by rcanessa

In this article, we present a trading strategy developed and kindly provided by a collaborator named Erick Diaz Guerra.

This strategy uses an automatic indicator of supports and resistances; and as a filter, the standard stochastic oscillator of MetaTrader 4, a known technical indicator used in many trading systems. The strategy is based mainly on the likely price rebounds made in the supports and resistances. The stochastic serves to confirm the rebound movement. The approach seems simple and interesting at the same time, though I have not tried the strategy, however, I am planning to include it in the list of systems awaiting assessment. According to its author, the strategy has performed well in the backtesting and in a demo account, so he has decided to use the system with a real account.

Now let’s see a complete description of the strategy.

Main Economic Indicators for the Economy of Europe and the Euro (EUR)

by rcanessa

The fundamental indicators shown below are of high importance for the euro, however, since the EMU (Economic and Monetary Union, the countries within the European Union which share a common market and a single currency, the euro) is composed of 17 countries, it is essential to be aware of major political and economic events of the member countries, such as changes in GDP, unemployment, and inflation. The major economies of the EMU are Germany, France, and Italy, for which, in addition to general economic data from the EMU, economic information from these three countries have the most relevance for the euro.

XM Broker 10th Anniversary Promotion – $1 Million in prizes

by rcanessa

The online Forex broker XM (a company regulated by organizations such as CySEC of Europe) is offering a new promotion for all its clients in celebration of its tenth anniversary. This promotion, which will run from November 2019 to August 2020, allows its participants to obtain different prizes that will be described later. Each month, XM will award $80,000 in prizes that will be distributed among 50 winning traders (the conditions for obtaining the prizes will be indicated below). Besides, at the end of the promotion, there will be a Final Draw where the company offers a prize pool of $200,000 that will be distributed among 10 winners.

This 2019 marks the 10th anniversary of XM, one of the largest Forex brokers for retail traders today. To commemorate this event, the company is inviting its customers, both new and existing, to celebrate XM’s corporate anniversary through this 10-month promotion, where $ 1,000,000 will be distributed among 500 winning traders.

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