Author: rcanessa - Page 61

Forex Broker Trade-24

Trade 24 broker update The Trade 24 broker closed its offices in the middle of 2020 and therefore no longer offers any type of financial service. But if you are interested in investing in Forex and other markets, you can consult the following list of brokers that shows the most important regulated brokers today. List of Online Forex&CFD Brokers … Read more

IFC Markets Broker

by rcanessa

IFC Markets – Forex Broker Review IFC Markets is a Forex broker Market Maker founded in 2006 which offers the possibility to trade with various types of financial assets including currency pairs (Forex), commodities and Contracts For Difference based on oil and stock indices. It is a broker oriented to beginners traders with low capital to invest in the market. But … Read more

Triple Bottom Reversal Pattern

by rcanessa

Description of triple bottom pattern

Many successful investors keep implementing well known chart patterns such as the “Triple Bottom” in their trading strategies model. Forex traders are not the exception as many traders around the world use formations as the triple bottom to take decisions regarding their trades in the market, including the opening and closing of market positions. The triple bottom chart pattern combined with other market analisys tools allows to discover important trading opportunites to speculate in financial markets like Forex.

Triple bottom chart pattern is also described as TB in short, which is a kind of technical chart analysis examined in the market bottoms. Being the most reliable and trustworthy form of chart pattern, the triple bottom remains outright in its character and it is described by 3 distinct lows within the market having the similar price standards. The triple bottom remains distinct to the head and shoulders chart pattern and the only difference is the 3 lows occurring in the bottom throughout the similar price level existing in the double bottom.

This formation is the opposite of the Triple Top Pattern.

Triple Top – Reversal Chart Pattern

by rcanessa

Triple Top Pattern Explained

Triple top pattern, shortly called as TT is a technical analysis chart pattern which is determined at the market tops and can be seen in every financial market, including Forex and the stock market for example. Among the many different chart patterns, the Triple Top (TT) is the best and authentic chart patterns examined in the trade analysis chart. The TT pattern remains distinct from the head and shoulders pattern, apart from those 3 peaks remaining top with the similar price level that works like the double top.

The 1st peak occurring in the triple top patter is made while the rates drop down in the consolidation of the clear market phase. Rates will further accelerate up to a standard of the 1st peak where buyers will stop gaining maximum benefit for pushing the rates by means of resistance. Also the 3rd peak is made in a similar way. This formation is the opposite of the triple bottom pattern.

Main features of the Triple Top

As discussed above, triple top will look like 3 sharp peaks with similar levels in at all the point. Generally, TT arises while the market is on its peak time with an uptrend. The 3 peaks should remain sharp and definite, while the low could look like a rounded valley. This chart pattern remains comprehensive while the rates drop below the least low in the structure pattern. Bulkowski state that, the TT pattern is formulated with multiple variations and suggest the traders to set a well-defined congestion pattern.

The Margin Call

by rcanessa

What is the margin call?

A margin call is the requirement by the broker or dealer for the trader to add new funds to meet the requirements of margin required to cover their open positions in the market.

The margin call is a situation that occurs in markets in which the traders invest with margin, ie, in those in which leverage is used (Forex is the best example of those markets). The margin call occurs when the free margin in the account falls below the minimum margin required by the broker to cover the positions the trader has opened. When the margin call occurs, the investor has to increase the margin in the account, which can be done by adding new funds or by closing existing positions. If the trader does not increase the margin in the account, the broker can close positions of the trader, whether the positions at a profit or a loss. Usually, it’s the system itself of the broker that make the margin call automatically when the free margin falls below margin requirements. Thus, the broker prevents clients lose more money than they have deposited in the account.

I left my trading account in zero: 4 steps to recover

by rcanessa

So you have lost your trading account and now is in zero? Oh, man, I’m sorry, this have also happened to me several times …… !! But let’s be a little constructive and rather than lament the big loss let’s think why the account was ruined and what we should do and as evil of many is the consolation of fools, think that ruin Forex accounts is something quite common.

Perhaps you are tired of hearing that 90% of traders lose money in their first year of trading. I really do not know if this statistic is very accurate, but unfortunately for what I see, I tend to think that is true. I myself have had accounts that have practically fallen to zero: lack of discipline, not following the trading plan designed, etc. are usually the most common causes that lead to continuous losses that diminish and undermine trading accounts even to activate margin call.

But do not miss any illusions, I believe that even the most famous and respected traders have failed at some point and have reached the bottom to return to the market and be successful.

Currency wars

by rcanessa

Definition of currency wars

It consists of manipulating the currency to sell more. You lower the value of your country’s currency and artificially lower your products to make them more attractive in other countries and increase your exports.

How can a country manipulate its currency? There are many ways, but simplifying, the two main ones would be:

Lower interest rates. You pay less to have the coin. People prefer to invest in other currencies with higher interest rates.
Sell a lot of your currency in exchange for other foreign currencies. In this way, you flood the market with yen, for example, and that depreciates the currency.

Position in Trading

by rcanessa

position in trading

What is a position?

In the field of trading in financial markets, a position is a binding commitment to buy or sell a specific amount of financial instruments such as stocks, currencies, commodities or derivatives, to a certain price. The term “position” is also used in finance to describe the amount of assets held by a person, company or institution as well as the state of property of the investments of an individual or institution.

Do not confuse the meaning of “position” in the trading of financial instruments with the term “financial position”. The latter stands for “status” or “statement”, ie the balance sheet liabilities in a company to take charge of their debts and obligations.

Simple moving averages (SMA) – Definition and features

by rcanessa

The simple moving average is basically the simplest way to calculate a moving average. This is an arithmetic mean in which the sum of the last N prices (P) will be taken and divided by N, where N is the period. In other words is an average where all data prices have the same weight. Remember that the most usual is to calculate this indicator using closing prices and therefore from now on we will refer to the closing prices.

It is one of the most used technical indicators by traders in all markets. Many trading systems use simple moving averages, mainly as a trend indicator.

The simple moving average is usually represented by the acronym SMA.

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