The Stick Sandwich Interpretation

While analyzing technical charts, whether in a bear or in a bull market, have you ever stumbled on a pattern that looks like a sandwich? You know, 3 candles: 1 at the middle and the 2 that are located on both sides. The set doesn’t simply show up to remind you of food; in fact, it shows up to indicate a trend – and a profitable one!

Technically, the said pattern is known as the Stick Sandwich in the foreign exchange market.

What Is the Stick Sandwich?
The Stick Sandwich is a technical trading pattern that resembles a sandwich; it was developed by the internationally recognized trader, Thomas Bulkowski. It is composed of 3 candles; 1 is engulfed by 2 similarly colored candles. When compared to the external candles, the middle candle has a relatively small trading range. 

Moreover, the Stick Sandwich draws light on the formation of support and resistance levels in the Forex market. It follows that other than point out strong and weak market conditions, it distributes hints with regard to particular closing prices.

Points to remember:
  • Continuations are more likely to occur on the 3rd of the year’s lowest price
  • It can produce a signal for a downward retrace in an uptrend
  • It can produce a signal for an upward retrace in a downtrend
  • Reversals can be detected from  the position of the closing price

It’s all about Perspective
As mentioned, the Stick Sandwich can appear in any given market condition; it can be identified in a bearish market, as well as in a bullish market. It is said that if there’s a small, red candle on the middle, and it is surrounded by 2 long, green candles, you are trading in a bear market. If you are in such a trading environment, you are more likely to participate in a downtrend.

Conversely, the Stick Sandwich can appear in a bull market where price action goes in line with positive trading behavior; since the prices are up and rising, pursuing the ongoing uptrend seems best. Particularly, if the middle candle is the short, green candle, which is located between 2 long, red candles, you’re said to be on bullish conditions.

According to the Analysts
For many analysts, the Stick Sandwich has a questionable reliability; while it can sometimes show trend reversal, it can also lead to trend continuation. On most instances, you’re left uncertain of what it indicates. Although it can be used to establish support and resistance levels, it can yield two-ended results. It is, therefore, recommended to await price confirmation.

How Rollover Affects Your Account - List of Negative and Positive Swap Rates

This article presents a comprehensive list of swap rates according to positive and negative rates. The essence is to let traders get a good knowledge of currency pairs that attracts extra profits or additional loss in terms of interest when a position is left open to the next day.


In simple terms Forex Rollover or otherwise known as swaps is the interest paid to you or paid by you for holding a position overnight. Each world currency has an interest rate connected to it. So this means that when a position is left open till the next day, it attracts interests irrespective of when it was opened. This should not be an issue for short-term traders and scalpers, but for long term traders it is definitely an issue.


Effects of Negative Swap Rate - Rollover

Effects of Positive Swap Rate - Rollover
Apparently most traders do not bother about rollover policies when choosing a broker because they do not know the effects of rollover (swaps) until they find themselves in such situation. In the illustration above we can see an account with open positions running for more than 4 to 6 days. On the right column (swap) we can see the effects of
http://www.forex21.com/fx-pulse-4#a_aid=51e67ce7cd13d&a_bid=043f400aholding the positions overnight. The swap values (interest) has been added to the profits. For instance in the GBPCHF position with 10 lots the actual profit should have been $19,103.93 but a negative accumulated swap value of -$386.04 was added to it. If the trader knew about the swap rates for the GBPCHF pair he probably would have avoided holding on to the position overnight or taken a better decision to reduce extra loss while hoping for a price rebound. In the other illustration we can see the positive effect of leaving the EURCAD position overnight. The trader gained extra $25.54 added to the profit.

Rollover (Swap) Rates
See below a detailed swap rate list for currency pairs. The list is derived from HotForex Broker. The values might not be the same for other brokers.




Long (BUY)- Negative Swap Rates (Interest Paid By The Trader) click to expand/collapse



Short (SELL)- Positive Swap Rates (Interest Paid To The Trader) click to expand/collapse



Short (SELL)- Negative Swap Rates (Interest Paid By The Trader) click to expand/collapse



NB
Swaps are valued in pips/lots, and may be adjusted daily based on market conditions, and rates provided by Liquidity Providers applicable to all open positions. Some brokers double or triple their swaps on certain day(s) of the week. For example HotForex applies Triple Swaps on Wednesday of each week.

So when choosing a broker consider their swap rate. Wish you a successful trading.

FXTradeCity Recommends HotForex Broker - Click here to find out why....

https://www.hotforex.com/?refid=308884





Image "Money Exchange Between Dollar And Euro" courtesy of tungphoto / FreeDigitalPhotos.net


Choosing Low Spread Forex Broker Will Save You Money

In currency trading, the spread, calculated in pips, refers to the difference between the price at which a currency could be bought and the price at which it could be sold at any point in time. Most brokers will not charge commission or fees, so the spread is how they make revenue. In choosing your Forex broker, you need to take a closer look on the spreads, because the difference is as great as the difference in the commissions in the stock market.

Some Forex traders believe that getting the lowest possible spread is the most essential prerequisite in choosing a Forex broker. Lower spread could minimize the possible losses and it is important for those who open and close several positions for every session.

Many forex brokers can provide either variable or fixed spread with common and minimum value. However, low spreads are applicable for accounts that require high deposits. It is still possible to get low spread accounts with Forex brokers who are offering micro accounts. It will help you a lot not to confuse these brokers that are offering accounts with zero spreads.

Forex traders who follow the scalping strategy are often more interested in opening accounts with low spread brokers. As a matter of fact, more and more low-spread deals are being opened every day. Commissions that are valued at 100 pips are provided under these conditions. Traders find it easy to deal with low spread desks because it minimized their operational costs. This is usually regarded as a primary criterion in selecting a forex broker.

When you choose lower spreads, you can pay less for every trade. Even though this is not always as easy as it sounds, you will find that this is quite easy. Low spread accounts are even beneficial for big traders. In case you choose a Forex broker who offers low spreads and still charging for commission, you will pay smaller amount as you increase the volume of your trade. Beyond individual trading, you are actually helping the Forex market to become a more competitive place because you are directly incentivizing the competitors to decrease the spreads.

In the case of small accounts, there are Forex brokers who yield low spreads. Small Forex traders are attracted to such brokers and they are willing to pay the required initial deposit. Lower commissions for trading and spreads are recommended for a trader. It is ideal to choose a broker, which can provide you with such a platform.

This article has been written by Mr. James, a Forex analyst from Admiralmarkets.ae – an Arabic Forex broker.

What Are Forex Contests

A Forex contest is in essence a trading contest organized by a broker. These Forex contests frequently provide expensive prizes, in some cases they are in the form of large cash rewards, iPads, Blackberries, or fancy cars. A trader who has a high percentage gain which beats all others might win cash prizes. In other contests traders may qualify for a raffle just by meeting the contest rules. Forex contests are usually planned in the form of either demo or live trading contests.

Some Forex contests are carried out risk free on practice accounts and one may participate without any charge—these are the demo contests. Some demo contests function in the form of virtual reality.

Forex Demo Competitions are perfect for beginners and give them the ideal chance to not only try out their trading skills but to gain a little experience with Forex. Demo contests are not for beginners alone, however, and many skilled traders often participate in them because many demo contests still offer real prizes. In fact, some demo contests are actually geared towards experienced traders. Some demo contests are set up the same as live/real contests on certain websites, but this ultimately comes down to the individual broker. It is good to start with a demo account and then move to a real contest, and if you are successful with a demo contest you should have success with a live contest. In a live contest the money you move around is real whereas it is virtual in a demo contest. Most traders agree that the biggest difference between demo and live is the psychology behind it; real money vs. fake. The biggest key is to believe in yourself and stick to your plan. Some contests require you submit a deposit.

For most Forex contests the objective is to identify the best trader and then reward them. It is not uncommon for a Forex contest to last for one or two years. Most contests typically consist of a series of rounds lasting a set period of time in which traders will compete with one another. While some rounds may last months, others can last a much shorter period of time such as days or weeks. Some contests require that you enter them prior to the beginning, but others allow you to enter at any point during the duration of the contest. Often times prizes are given away at the end of each round, and sometimes there are weekly prizes and an annual prize. When the prizes are given and what the prizes are depends on the contest and can vary significantly.

Article Source: Forextradingbonus.com

Forex Rebates

Forex rebates are a pretty new idea, but an ideal way for traders to increase their Forex earnings. There are many companies out there who cater to offer rebates to traders. The explosion in the currency market over the last 5 years had been incredible. Not anymore is the currency market the conserve of the rich and well-connected investor. Today, anybody with an internet connection and a laptop can participate in the activity. 

Forex rebates could be described as short earnings that are paid to short sellers in sale. This word is utilized to denote it simply because of the option holder could get a specific sum of money back on his investment made from the shares and stocks. The agents are increasingly becoming the yield and an exchange always looks for financing the share of investment that is paid to brokers. Normally, brokers give this kind of rebates and traders usually keep an eye on the reducing the amount paid to brokers simply with the intention to expand their investment and decrease the share of 3rd parties. 

Nowadays there are actually many Forex brokers giving their service to investment community. The best way they can publicize their services would be to recruit many agents, or including brokers, to assist them to sign up new clients. In turn, the added brokers are paid an amount by the Forex broker for every new customer that enrolls via the introducing agent. This amount will base on how much trading the customer really does with the broker, with regards to how much sum of notional Forex is traded. 

A different name of Forex rebate is “Forex cash back”. You may contact your broker to join the program right away. There are many rebates companies on the market that you may join. Just be wise to pick which company to join, simply because each company provides different offers. 

Some benefits you may enjoy from a Forex rebate system 
  1. You will be paid for making trades. Why not enjoy a reward for something which you usually do anyhow? 
  2. Rebate will assist make your trading a lot more profitable. If you have a nasty run of losing trades, rebates will help make-up for it by giving you a few of the money you have lost. However, if you are making successful trades, rebates will let you have more profits. 
  3. A rebate course will give you rewards just for joining a certain broker. As a motive, many brokers give welcome incentives to people who will join them through rebate program. This may put thousands of dollars in your Forex account at a time that you could use to trade. 


You are able to join a rebate program even when you already have account with an online broker. Many programs can work with your active broker to organize a rebate for you.

This post is provided by Binary Options Hub.

What Are The Future Options On World Indices?

To add value to the overall policy of trading one can add binary options in it to understand the future options of trading on world indices. The predictions can be made of the future movement of the price in the market index by trading on the future indices. These future indices are there in the global market, which becomes the best part of it as they get listed on the major stock exchanges. The strategy can be made for trading by recognizing the  signals of the future indices. 

Understanding Normal and Future Indices
There are two kinds of indices normal indices, in which average range of stocks is determined and as per their index the range of the number of stocks can increase from dozens to hundreds. The constancy of the market is the pointer to the value of an index in the particular region. The other kind is future indices, which depends upon the value of the market index. The market analysts look into the stability of the index’s components and the economy and hence hypothesize on the future options of the world indices. These future options get scheduled as the index in the same stock market. The changing views of the market analysts make fluctuation in the value of the future index. In order to implement trading on future index the binary traders should calculate the predicted future value that might fall or rise in that time period.

Making future option on world indices for long terms
The possessed knowledge on the future value of the indices can be very helpful in getting benefits from the future indices. While having future choices for the value of the index on hourly and daily basis one can easily get the benefit of getting the returns while doing binary trade. By making the long term predictions  one can get quick return.

Options for placing your trade on future indices
By having options of the world future indices to pace the trade on, one can get the benefit of trading on the futures indices from the US market when the European market gets closed. It is very important to understand the shifts in the market while trading in the future world indices. The market annotations should be given the supreme importance as the future value of the world indices depends upon the sentiments of the overall market. The proficient analysis of the leading analysts is very important as it helps one judge the value of the world indices as it may rise and fall. By looking into the news of the financial changes in the global market, one can make better future options on world indices. 

The overall strategy of trading can get diversified while trading on the future indices. It is very important for those who want to know the future options on world indices to understand the options that have an impact on these world indices in the future. The profitability of the trade can be improved by placing the future options on the world indices.

This post is written by the binaryoptionshub.com.

News Trading Guide Series 3 - How To Protect Your Trades From News Spikes With Trailing Stop

The impact or outcome of an economic news event can cause great anxiety, nervousness, panic & excitement. The result of this is the sharp spike, and whipsaws that either adds to the profit or drains the account in few seconds. This article reveals a solution on how to guard yourself from such occurrence, and profit from it.


FACT: A news outcome can cause a spike in a currency to move sharply from 60 to 100 pips in seconds. That is what some traders struggle to get in days and weeks. This makes news trading extremely beneficial, and at the same time very risky



The question is why does this happens? Simple - the global market always reacts instantly to heart breaking or happy cheering news about the status of a country's core economic indicator, which is used for investment decisions. The two (2) major decisions are to invest or to pull out. For example, during the Swiss Franc Euro Capping episode in January 2015, the reaction world wide was extremely drastic up to the extent that major brokers, and banks were seriously hit.

FACT: A HotForex trader (Ayodele Odingboro) made a gain of 1,355pips while trading the CHF pair during the Swiss Franc Capping Episode despite the extreme spike.

The following are certain to happen after figures or decisions are released from an economic news event:
  1. Market moves to the direction of the outcome of the news release (one way instant direction).
  2. An indecision may occur leading to whipsaws (sharp up and down movement) hitting both SL instantly.
  3. Nothing happens, and price continues on its natural path.


HOW TO GUARD YOUR TRADES FROM NEWS SPIKES
One of the best tools that can protect your account from news spikes, and at the same time profit from it whether the trade is going against you is Trailing Stop. I want to state this clearly - there is no other tool that can do a perfect work than the Trailing Stop Tool. Any news trading EA or system that does not integrate trailing stops is highly deficient.

What Is The Best Amount Of Trailing Stop To Use?
All news event comes with different impact. Some have a usual pattern like the UK MPC Rate Decision, GDP Reports, Unemployment Data, CPI's, & some speeches. They often manifest with sharp or steady spike. Therefore their trade settings differs.

  1. For high impact news trading or events that causes lots of volatility in the market, use high or medium trailing stops. The idea is to capture the fast movement of the market while giving it some fair distance, and then later adjust it upwards until your TS is much closer until it either reaches your TP or price returns back hitting the TS
  2. For events that comes with slow paced movement at the beginning like speeches, wait for price to advance gently until you are sure of its direction. Then use a medium size TS until the event is over.
  3. All other events use medium TS. Do not use very tight trailing stops because immediately your order is hit, the TS quickly activates, and the tendency for price to retrace, and hit the TS and then reverse back is very high. So capture a bit of it; leaving a safe distance as it advances, and then as soon as it picks up momentum you can adjust it to get closer.
  4. For events that has a reputation of creating whipsaws (fast up and down movement), which is capable of hitting both orders (BUY/SELL), then you can use tight trailing stops. The essence of this is to grab the best possible pips from both sides. There are cases where this happens in the speed of light. You only see the effect in your account journal. It is most times beyond our control.

Additional Tips
High Trailing Stops - 75 to 100 pips
Medium Trailing Stops - 50 to 65 pips
Tight Trailing Stops - 30 to 45 pips

The above pip value is for Five (5) digit pricing brokers. It is also applicable to Four (4) digit pricing brokers.

Furthermore there are no fixed value for Trailing Stops. You need to closely monitor and understand how a currency reacts and come up with the right Trailing Stop that can manage the trade during the impact.

Quantina News Trader EA Ultimate 2015 (Auto & Manual) trades the news with a customized trailing stop feature which can be modified to users taste.

Image "Traveling at Speed of Light courtesy of digidreamgrafix" / FreeDigitalPhotos.net

Making Daily Forex Strategies Work

The behavior of the market within the day is important to all Forex traders especially to those who are into short-term trading business like scalping, day trading, and swing trading. To these traders, the most important of the daily Forex trading strategies is the daily chart. A daily chart is a line graph that shows intraday movements of a given security. Trading using the intraday movements is not only stressful but also very demanding too for focus and energy. 

How it Works
Trading using the daily charts is easier as compared to the intraday fluctuations. A daily chart reflects all of the price movements for the period and is typically used by day by traders to implement short-term strategies. Out of these daily charts, Forex trading strategy charts can be derived that are ideal for those with full-time employment. In a way, this means the translation of the daily trends into plans, daily Forex strategies, and risk management strategies. It also gives these people the opportunity to trade full time after work and the chance to build a huge equity base slowly but surely. This is quite possible because some of these daily Forex strategies are capable of generating 100-500 pips per trade without the need to be glued on the computer for hours when trading. Incidentally, pip (or pips) means “percentage in point” and it refers to the smallest price fluctuation of a currency as it relates to another currency. A pip’s value is 1/100 of a cent.

Alongside the use of the daily charts is the so called Daily Timeframe Strategy which is based on two indicators: Bill William’s Acceleration/Deceleration Indicator (AC) and the Stochastic Oscillator. According to William, price change is triggered by momentum changes, which in turn are influenced by acceleration and deceleration. Hence, being able to identify acceleration and deceleration is enough to anticipate what’s forthcoming. Meanwhile, Stochastic indicates events of overbought and oversold in the trading market. Daily Forex trading strategies like this Daily Timeframe Strategy must be practiced at least on a demo account to see how easily it can make hundreds of pips per trade. 

Using daily Forex strategies strive to develop your own indicators to watch out for. Since Forex is unstable, make sure you know the signs when it is volatile. This is how traders end up losing money. One does not need to dwell too much on the technical aspects. Keep things simple just like how daily Forex strategies work. 


Author of the article is Zahir, an Analyst from Forex Trading Egypt, you can find more helpful tips here http://www.investopedia.com/forex/strategies/ 

Can Online Trading Be a Hobby? - Find out what people trade online, how it happens and reasons to start or to stop!

So you have decided that your life doesn’t seem to be quite exciting and you are looking for a new way to entertain and enlighten yourself. You may also be interested in having a hobby you can make money from. These and other reasons can potentially lead you to online trading, as it is an interesting and comfy activity performed directly from any device connected to the Internet.

Nowadays we have millions of retail traders. As the markets are getting developed and more accessible, today it is possible to start trading online with as little as 50 USD with one of the CFDs or Forex brokers. The whole registration process can take about 3 minutes and deposit via card takes another one. The trading platforms are quite intuitive and could be run on any device. However, even though trading is accessible, it is not suitable for everyone. 

In general, there is quite a thin line between a hobby and addictions. These are in fact almost the same thing, the main difference is that a hobby makes you good while an addiction makes you worse. Unfortunately, online trading can do both, ruin your life or make your life better.

Trading is great, as it lets a person to examine the market, understand the trends, stay up to date with the economic development and the whole political situation. Trading makes you think, analyze and predict. Even though trading is exciting, it is also a bit stressful and it teaches you to cope with nervous occasions. Of course, successful trading also gives you extra funds.

From the other side, people can easily get into a losing spree and forget about all the fun and passion for knowledge. Such people usually start to be obsessed with just getting their money back. Others simply want to gamble and they just don’t have time to learn trading, they simply want to place a trade and see what happens. This can be fun as well, but outside of the short term, this will only cost you money and will not give you anything back.

So should I start trading? If you are a person who is able to spend at least 10 hours a week on learning, can control your emotions and are not afraid - then go ahead. Failure to dedicate sufficient time, psychological mistaken and fear of new will definitely stay in your way. What is best about online trading is that you can start it as your hobby totally free. Almost every broker a free account with virtual money and a bunch of learning opportunities.

This article is supplied by Forex Bonus Lab. Check out more content at forexbonuslab.com - best forex broker reviews, bonus offers, trading tips & more.

NEWS TRADING

Welcome to our News Trading guide, and tips.  Information posted here is not a recommendation to BUY or SELL any currency. Traders should be aware of the extreme volatility in News Trading, and therefore trade the news with serious caution. Please see our Disclaimer Notice.

3rd Week of July 2018

A likely busy week it will be in the streets of News Trading as CPIs top the list of high impact events for the week under review. We will be paying close attention to crucial events from some key economies in the US, UK, New Zealand, Australia and Canada.

There are also some key speeches from Central Bank Chiefs that may be of interest to the market especially the US Fed Chair meeting with the Financl Services Committee and others.

We expect some great amount of volatility especially during these events if they turn out as expected. This will provide the needed opportunity to make some good amount of profits if we get the desired outcome.

Join us and get set for action. Wish you a pipfull outcome this week.  NB: See our summary analysis of our news trading results. Click Here



Mon July 16th, 2018 [US Core Retail Sales m/m]
Event Time: 8:30am EST | 1:30pm GMT +1
The US Core Retail Sales has been forecasted 1% lower than previous months. A better than expected result will boost the USD especially following series of negative outcomes though with upward revisions. A worse than expected outcome may stir up a sell syndrome in the market.


News Trade Type/Method: [High Impact] Market Order; Pending Order; Straddling

Past Review: An outlook of previous events has not been too impressive on the actual results though most of them were reviewed upwards. The recent event in June is one of the best outcomes since 2018. 

Recommendation: BUY USD if the Core Retail Sales is increased from 0.7% to 0.9%. SELL if it is reduced from 0.2% to -0.1%

Recommended Pairs: USDJPY, EURUSD, USDNZD, USDCHF, GBPUSD
 
Available on News Trading Signal Service: YES 


**Recommended News Trading Tools**







Wed, July 18th [UK CPI m/m] 
Event Time: 4:30am EST | 9:30am GMT +1
This is one of UK's vital economic inflation data with the capacity to stir the market especially as issues on UK's economy viz-a-viz Post-Brexit is still in the front burner. A better than expected result may boost the British Pound Dollar but a worse than expected result may send it diving down.

News Trade Type/Method: [High Impact] Pending Order; Straddling

Past Review: UK's CPI overtime has not been impressive since the year began. We have witnessed 3 negative outcomes so far with only one better than expected result since January 2018. 
 
Recommendation: BUY GBP if the CPI comes out at 2.8%
to 3.0%. SELL if the outcome comes out within 2.4% to 2.3%
 
Recommended Pairs: GBPUSD, EURGBP, GBPJPY, GBPCHF, GBPCAD

Available on News Trading Signal Service: Yes  

**Recommended News Trading Tools**







Thur, July 19th [AUD Empl. Change] 
Event Time: 9:30pm EST | 2:30am GMT +1
A total of 16.6k additional jobs has been forecasted as additional jobs for the month under review. However if the Australian Bureau of Statistics publishes a better than expected result then the Australian Dollar will appreciate modestly. The reverse is the case if we get a negative outcome.

News Trade Type/Method: [High Impact] Pending Order; Straddling

Past Review: Australia's job data has been very disappointing following series of negative outcomes since January 2018. The recent job data performance came out negative also with a downward review of the previous positive outcome.
  
Recommendation: BUY AUD if Empl. Chnage comes out at 46.6K
and Unemployment Rate remains the same or reduces to 5.3%. SELL if the Empl. Change comes out at -13.4K and unemployment rate increases to 5.5%
 
Recommended Pairs: AUDUSD, EURAUD, AUDJPY, AUDCHF, AUDCAD

Available on News Trading Signal Service: **Yes  

**Recommended News Trading Tools**







Wed, July 18th [UK Retail Sales m/m] 
Event Time: 4:30am EST | 9:30am GMT +1
A good result today from UK's Office for National Statistics will decide the trend once again for the British Dollar over major pairs. Investors will likely use this result to weigh the direction of UK Economy in the short term following the recent CPI data. 

News Trade Type/Method: [Medium Impact] Pending Order; Straddling

Past Review: The retail sales data seems to have picked up since April, 2018 with a steady and impressive upward reviews.  
 
Recommendation: BUY GBP if Retail Sales comes out at
0.70%. SELL if the outcome comes out lower at -0.30%
 
Recommended Pairs: GBPUSD, EURGBP, GBPJPY, GBPCHF, GBPCAD

Available on News Trading Signal Service: Yes  

**Recommended News Trading Tools**







Wed, July 18th [UK CPI m/m] 
Event Time: 4:30am EST | 9:30am GMT +1
This is one of UK's vital economic inflation data with the capacity to stir the market especially as issues on UK's economy viz-a-viz Post-Brexit is still in the front burner. A better than expected result may boost the British Pound Dollar but a worse than expected result may send it diving down.

News Trade Type/Method: [High Impact] Pending Order; Straddling

Past Review: UK's CPI overtime has not been impressive since the year began. We have witnessed 3 negative outcomes so far with only one better than expected result since January 2018. 
 
Recommendation: BUY GBP if the CPI comes out at 2.8%
to 3.0%. SELL if the outcome comes out within 2.4% to 2.3%
 
Recommended Pairs: GBPUSD, EURGBP, GBPJPY, GBPCHF

Available on News Trading Signal Service: Yes  

**Recommended News Trading Tools**









These are the high impact news trading tips and guide for the 3rd Week of July, 2018. Feel free to leave your comments, inquiries, and suggestions.