rcanessa

Trading System with RSI and CCI

by

This is a simple trading technique based on the use of the indicators RSI (oscillator) and CCI (trend indicator). The author claims it is a pretty efficient system, however, I recommend to evaluate it on a demo account before risking real money. The strategy was explained in a forum on the Forex market and its author has indicated that sometimes he obtains more than 400 pips in two days with this system.

To implement the system the trader requires a candle or bar chart with a time frame of 5 minutes (the trader can use longer time frames but can be more risky). The indicators used are the RSI at 14 (it can also be used with 8 periods too) with additional levels at 45 and 50 and the CCI with 14 periods. The recommended currency pairs are:

  • EUR/USD.
  • USD/CHF.
  • EUR/JPY.
  • GBP/USD.

Because it works based on oscillators and in a short time frame, the system produces false signals, which can be filtered using an indicator like the ADX at 14 for example. The MACD can also be used with a configuration of (3, 81, 29) and (3, 10, 16). Another indicator that can be used is a moving average to verify the direction of the trend. Remember that in markets with a strong tendency the oscillators produce even more false signals so it is best to trade in favor of the trend. For that an EMA can help us.

Read more

How affects the control of inflation the Forex market?

by

The increase in prices over time, which is inflation, in an economy experiencing growth is inevitable. Furthermore, it is accepted by most economists that a moderate rate of inflation is positive for the economy. In this regard, central banks try to control inflation to be kept within certain limits in order to exploit the positive effects of inflation and reduce the impact of negative effects. In this sense, monetary authorities maintain a constant struggle to control inflation and other monetary forces affecting the economy.

Increases in interest rates

Increasing interest rates is one of the main measures taken by central banks to reduce inflationary pressure when this is high. Moreover, it is easy to apply strategy whose effects are usually seen reflected faster in the economy in comparison with the effects of other methods. By raising interest rates, the central bank raise the benchmark interest rate at which commercial banks will look when granting loans to their clients.

Read more

Diamond Reversal Chart Pattern

by

 

Diamonds Chart Patterns Explained

The diamond chart pattern is a very rare and exceptional form of chart formation which looks same like the head and shoulder or an inverted head and shoulder pattern. It is a reversal pattern which appears in a V shape. The diamond patterns will not frequently occur in the market bottoms and it usually takes place during the major top. As these diamonds chart pattern executes as a variant of head and shoulders chart patterns, the traders have to withstand their desire for differentiating the top that resembles a diamond formation. The basic reason for avoiding this pattern is that, the diamonds chart pattern will evoke a break in the trend very sooner when compared to the head and shoulders chart formation.

Basically there are two types of diamond patterns: the diamond bottoms which are formed in bearish trends and the diamond tops which are formed in bullish trends. In both cases the pattern is formed by two  juxtaposed symmetrical triangles.

Read more

FBS broker offers a $50 free bonus

by

The Forex and CFD broker FBS has just announced a new promotion consisting of a free bonus of USD 50 for all its customers, both new and existing, which does not require prior deposit by the trader. It is a no deposit bonus granted to all interested customers, who have to enter their Personal Area and open a new trading account called “$50 Bonus Account”. It is not free money, since the trader can not withdraw the bonus, but can withdraw all the profits obtained in the transactions in which he uses the bonus money.

It is an ideal promotion for traders who are interested in evaluating the services of the FBS broker and trade in the markets with real money and who do not want or can not risk real money in the process. With this bonus the trader can trade with all trading instruments offered by this broker.

-Period of validity of the promotion: At the moment the broker FBS has not indicated a deadline for this offer and is valid throughout 2017-2018, however the company can modify the terms and even cancel the offer at any time. This promotion has ended, however the company now offers a free $100 no deposit bonus for new and existing clients. More information here: 100 USD no deposit bonus from FBS.

Read more

Relative Vigor Index (RVI) Indicator

by

The Relative Vigor Index or RVI is a technical indicator used to measure the strength or conviction or a recent price action and the possibility of this movement to continue. This indicator was first described in the magazine TechnicalAnalysis of Stocks and Commodities in an article titled “Something Old, Something New – Relative Vigor Index (RVI)” by John Ehlers. Basically the RVI combines old concepts of technical analysis with modern theory of digital signal processing and filters so that it is an indicator that is both useful and practical.

The base of the RVI is simple: prices tend to close higher compared to the market opening in a bullish market (a market with an uptrend) and close lower than the opening in a bearish market (a market with and a downtrend). The energy or force of the movement is thus established by the point or level where the price closes compared with the opening price. In this case the RVI is essentially based on the measuring of the average difference between the closing and opening prices, normalized to the average daily trading range.

Read more

XM Loyalty Program (Cash Back Program)

by

The Forex broker XM (formerly XEMarkets) has a loyalty program (a cashback program) for all its customers which allows the trader to get bonuses and additional money according to the volume of their trades in the market. To participate in this program, the trader does not have to register or fill out any special form.

More information about the XM broker and its online brokerage services for Forex and CFD at: XM Broker Review

The only requirement is to open a trading account with XM and trade regularly with Forex, precious metals, or CFD. With each transaction, the trader gets a certain amount of points that accumulate and can be exchanged for credit bonuses or cash.

This program has four levels depending on the trading volume of the trader:

Read more

Modified Exponential Moving Average (MEMA)

by
 

There is no need to remember the amount of technical analysis tools currently available, however, it is curious how we end up resorting to the simplest of all, which are not other than moving averages. The truth is that despite its simplicity, the media provide us with a fairly reliable information about the direction the market is taking, serving as reference points to establish the possible levels of support or resistance.

The moving average MEMA (it is the acronyms of the Modified Exponential Moving Average) is a type of exponential moving average that presents a series of particularities with respect to the traditional EMA. In the present article we are going to talk about this analytical tool.

Read more

XM No Deposit Bonus of 30 USD – Promotion for new clients

by
 

For a limited time, the Forex broker XM, a company regulated by important organizations like CySEC and the ASIC, is offering a free welcome bonus of $30 to all new customers who open a trading account to trade in the financial markets. Through this offer, a trader can start trading in the markets without any risk and at the same time can evaluate the main services of the broker XM, including its trading platforms. The bonus money can not be withdrawn, however, the trader can withdraw the profits obtained.

More information about the XM broker and its brokerage services for Forex and CFD in the following guide: XM broker review

-Validity period of the promotion: This promotion is limited in time, and while XM has not specified a deadline, the broker may change the terms or terminate the offer at any time. For the moment the promotion is valid for the remainder of 2021 and all of 2022.

Read more

How to move the stop loss in a trading operation?

by
 

We have already discussed in previous articles how important the stop loss is. For those who are not yet clear on the subject, the stop loss will be that price level from which our trade would cease to be valid and should be closed.

The stop loss can be automatic and programmed in the broker itself or manual. In the manual stop loss the trader makes the final closing of the transaction after checking the price in the market.

Knowing how to define the stop loss is very important. Depending on the distance of the stop loss from the price, we will have more or less profitability in the trade, provided that we respect an efficient money management.

The stop loss, once defined, may have a double evolution.

On the one hand we can have a fixed stop loss that does not evolve with the price. This type of stop loss is normally used on transactions with a high Risk/Profit ratio, so we are going to look for a price target that is much farther from the stop loss level.

Read more

+ More