Anna Mon

Transaction Hedging

Our company provides a service of hedging consultation for you. This service is directed at minimising any financial risks during the conclusion of transactions. Currency is a kind of commodity at the financial market: export merchants sell it and import merchants buy it. However, currency rate is very changeable, that is why the transaction which seemed profitable in the beginning can bring losses. For this reason transaction hedging is the only way out from this situation.

Forex News from New Forex: Technical analysis of AUD/USD

On Thursday the pair trades with a slight bullish sentiment within the level of support at 0.7619 and the level of resistance at 0.7680 with attempts to breach the latter. The rise which started on February 5 continues today, the market remains within the price channel.

In a four-hour timeframe the MACD-histogram stands in the positive zone but declines, the signal line goes up. The RSI stands above its central line and increases. It shows that the market has not exhausted its bullish potential yet and we can expect the continuation of the uptrend but only if the price consolidates above 0.7680. Up to this moment the situation is unclear.

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NewForex Analyst

Luigi Campo

Forex News from New Forex: Technical analysis of USD/JPY

On Thursday the currency pair trades with a bearish sentiment within the support at 112.04 and the resistance at 112.57.

Moving averages EMA3, EMA20 and EMA55 crossed downwards and decline. The MACD entered a negative zone, the histogram stands in flat, a signal line goes down.

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NewForex Analyst

Luigi Campo

For beginners of trading (Part 1)

Beginners of trading are probably in the most difficult situation among all the participants of Forex market. Quite often they have to pay for mistakes which they make because they are not aware of all the details of trading. That is why any beginner of trading might need some advice from experienced traders in order to get a better understanding of proccesses taking place in the currency market. Suck kind of advice is always helpful if you take it seriously, it can be useful, prevent from unnecessary risks and consequently undesirable effects.

At first a biginner of trading should focus on the detailed study of 2-3 trading systems, a pair of technical indicators and gradually deepening knowledge try to develop an indivudual trading system in the currency market. Making transactions to buy or sell some assets it is important to remember that the total amount used to open an initial position does not exceed 10% of the deposit. It is necessay to keep away from transactions which can lead to the loss of more than 5% of the deposit. The study of such instruments as «Take Profit» and «Stop Loss» can be quite efficient. In this case one should move these instruments only in the direction of descreasing loss and increasing profit. Although it is better not to be carried away by these movements as a sharp price bounce can easily take away a set Stop-Order which can lead to unplanned losses.

The development of the individual trading system is a necessary condition of success in the currency market trading and it should be taken by any trader for granted. The system of trading should be as easy as possible and go with conditions of the currency market. However, it is worth noting that success at trading with an individual Forex trading system is not always achieved by not only a lot of beginners but also experienced traders. The main reason of failures is the lack of discipline among traders, the failure to take into account all the signals of the system, react correctly without losing time to open and close trading positions. Poorly managed emotions, thirst for gambling, a wish to make quick money, fear can frequently destroy the trading system developed by the trader. Gambling is possible only within reasonable limits as undue risk too often brings to nought not only all the previous profitable transactions but also leads to a complete loss of funds. It is certainly important to come up with funds which a beginner brings to trading in the exchange market. Here it is recommended to follow the advice:

The amount of funds invested in trading should be within 50% out of the whole capital supposed to be used in Forex transactions.

The amount of funds invested into one market should not be more that 10-15% from the capital dimension.

The risk of one open position should not exceed 5% from the amount available on the deposit.

Affiliate Programme

NewForex provides different kinds of co-partnership. If you are interested in anything, get in touch with our Consulting Centre without hesitation to fill in an application form.

Forex News from New Forex: The Aussie and the kiwi gain against the US dollar

On Wednesday, March 30, the Australian and the New Zealand dollar advance against the greenback after the speech of the Fed’s Chair Jannet Yellen. Forecasts of the nearest interest hike have considerably decreased. According to the Fed’s Сhair, cautious economic politics should be carried out in the nearest future due to possible external risks such as low oil prices and slowdown of the global growth.

The pair AUD/USD surged 0.49% to 0.7664. Kiwi/dollar added 1.18% to 0.6925, a high since December 29. The rise of the New Zealand dollar is due to the increase of building consents by 10.8% in February after a 7.8% fall in January.

The Canadian dollar climbed 0.35% versus the buck to 1.3023. Commodity currencies gained support amidst the rise of oil prices. Crude oil futures with the delivery in May jumped 1.83% to $38.98 a barrel.

The dollar index tumbled 0.24% to 94.94, a low since March 18.

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NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Technical analysis of EUR/USD

On Wednesday the currency pair trades with a slight bullish sentiment within the price range seen at the opening of the Asian trading session. Yesterday a cautious speech of the Fed’s Chair Jannet Yellen regarding US economic perspectives considerably eased the dollar and lent support to the single currency. The market gained 100 pips and consolidated at 1.1190.

Judging by the current market position a further step might be the breaching of 1.1300 (which is not a challenging task) and a rise to the nearest level of resistance at 1.1328 (with support at 1.1249) and probably further to 1.1376 (a high of this year), if bulls have enough power. And there are doubts about it.

In spite of the bullish market sentiment (the MACD is above its central line and increases), according to the oscillators Stochastic and the RSI, the pair is overbought which implies the easing of the bullish market potential.

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NewForex Analyst

Michael Butnitsky

Forex News from New Forex: Technical analysis of USD/JPY

We have been observing the decrease of quotes within this currency pair for the third day in a row after a week rise. Yesterday during the US trading session the decline strengthened. And the Fed’s Chair Jannet Yellen contributed to it as she was quite sceptical about the perspectives of the US economy in the short run which did not provide expected support to the greenback in spite of upbeat data on the Consumer Confidence Index.

Today USD/JPY trades with a slight bearish sentiment within the immediate support at 112.07 and resistance at 112.78.

Exponential moving averages with 3, 20 and 55 day periods descend. The MACD-histogram declines as well and is close to moving below its central line. The oscillator Stochastic stays in the zone of oversold.

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NewForex Analyst

Michael Butnitsky

Forex News from New Forex: The US dollar in wait for Jannet Yellen’s speech

In the trading on Tuesday, March 29, the US dollar moves in mixed ways against the main currencies, investors are in the expectation of subtle hints about the interest rate hike in the speech of the Fed’s chair Jannet Yellen.

The pair euro/dollar surged 0.17% to 1.1212. However, the greenback managed to advance 0.18% versus the yen. The easing of the yen is connected with the announcement of Japanese Prime Minister Shinzo Abe who plans to increase sales tax next month. Economists supposed that Abe would decide to put off the tax hike as it might slow down the recovery of the Japanese economy.

The Australian dollar edged down to 0.33% to 0.7520 against the US dollar, the kiwi picked up 0.48% to 0.6751.

Currently the dollar index slid 0.11% to 95.89.

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NewForex Analyst

David Fineberg

Forex News from New Forex: Technical analysis of USD/CHF

After some lull on Monday due to the celebration of Easter in Europe by the Gregorian calendar, on Tuesday the currency pair demonstrates a bearish potential in the short run with local support at 0.9718 and resistance at 0.9786.

Exponential moving averages EMA20 and EMA55 crossed and decline. The MACD goes downwards although staying in the positive zone. The Stochastic left the zone of oversold and sends a signal to buy.

If the current level of resistance is breached, the price might enter 0.9850. In case of the opposite scenario, the downtrend might go to 0.9550.

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NewForex Analyst

David Fineberg

Forex News from New Forex: Technical analysis of EUR/USD

On Tuesday tradings the currency pair is supported by a firm bullish market sentiment in the short run. The level of support is seen at 1.1162, the level of resistance is at 1.1243. Due to closed European markets yesterday (Easter Monday in Europe) at the release of statistic data in the USA the euro advanced. Market participants considered data on Personal Consumption Expenditures quite weak triggering the selloff of the dollar. The trading session closed with a bullish candlestick. However, bulls were not very strong. The release of weak data on pending home sales in the USA restricted its potential capacity.

Although the MACD-histogram moves upwards, it still remains below its central line. The RSI indicator declines, a correctional movement to 1.1060 is highly possible if bulls have enough power. In case of easing of the current level of resistance there might be a rise to 1.1300 — 1.1325.

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NewForex Analyst

David Fineberg

Accounts without swaps — SWAP-FREE

NewForex company offers a SWAP-FREE service for those who use trading systems not affected by swaps and for those whose religious commitment does not allow them this usage. That is why this service got the second name — «Islamic Accounts». This kind of accounts have undeniable advantages.Traders can be sure that exchange fluctuation will have no influence on their income. In order to access this service, it is necessary to get in touch with our Consultation Centre and accept an agreement.

The importance of the technical analysis for a trader

Technical analysis is considered as a universally acknowledged approach to study the

financial market processes in order to provide a very precise, as far as it is possible, forecasting of the currency movement. Making a technical analysis a trader usually relies on the fact that the financial market has its own memory and consequently the future currency movement is under the influence of the objective laws of its behaviour in the past. On this basis specialists make certain conclusions.

Technical analysis is based on the following postulates:

The market takes everything into account and the price of this or that asset is the result and a through reflection of all forces that influence on market processes.

Price movement is characterized by certain tendencies. The market development dynamics includes periods of growth and fall in prices and the main tendency develops inside each of these periods the effect of which lasts until the price movement changes its direction into the opposite.

The market situation, which took place in the past, often has a high recurrence rate. In order to forecast what to expect in the future it is necessary to study the past. Studying price graphs one might notice that certain configurations appear quite steadily at different times and in different markets. This fact has quite a logical explanation: such kind of recurrences are the results of certain behavioral stereotypes which perform an inherent part of psychology of human.

Using evaluation data of the technical analysis one can forecast the market movement with a high degree of probability. Exactly this forecast is the most significat element of almost every trader’s strategy in Forex. On basis of the forecast a trader takes a final decision to open this or that position in the currency market, decides to buy or sell an asset, determines the most appropriate moment to make a transaction.

Technical analysis allows every trader to receive trustworthy forecasts of the price development in the currency market and it concerns almost any financial asset. However, it is important not only to have information but also to use it appropriately applying efficient trading strategies. In this case a trader can make the right decision which will allow to get a maximum profit from the transaction.

Thus, technical analysis is a very important aspect for every trader which helps to take right actions in the market, open positions investing personal funds in the right moment choosing the most efficient financial instrument. Having mastered the skills of the technical analysis, a trader may count on the profitable outcome of trading in the currency market and the risk of losses will kept to a minimum. Technical analysis undoubtedly contributes to a high probability of the trader’s success in Forex market.

Forex News from New Forex: The US dollar gains ground against the yen

In the trading on Monday, March 28, the US dollar rises against the yen, investors are in the expectation of the economic news from the US. The pair dollar/yen advanced 0.42% to 113.59. The greenback climbed after the Friday report, the GDP of the country surged 1.4% in the fourth quarter, although economists forecast only a 1% rise. The interest rate hike seems highly possible next month which will make the US currency more attractive for investors.

The Australian and the New Zealand dollar added 0.36% and 0.33% against the buck. The dollar index is currently at 96.42, a high since March 16.

Asian markets moved in mixed ways today, the weak yen contributed to the rise of Japanese shares. The Nikkei picked up 0.77%, the Topix jumped 1.16%. Chinese markets closed with a decline, the Shanghai Composite tumbled 0.72%, the Shenzhen Composite shed 0.55%. The Chinese yuan is flat against the greenback at 6.5143.

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NewForex Analyst

David Fineberg

What is the difference between Forex market and the futures market?

The majority of traders-beginners quite often can not understand the difference between Forex and the futures market. This fact can lead to the wrong choice of the further trading platform. That is why before commencing your own financial activity and trading it is worth finding out the difference which exists between the futures market and Forex.

First of all it important to understand that the futures market performs some kind of trading platform for the execution of futures contracts. In this market parties usually make transactions to buy/sell some commodities and shares the price of which is fixed by the futures contract.

There is not a considerable difference between the futures market and Forex for brokers as irrespective of the type of sales they receive their interests from every transaction which finally brings them profit. As for traders there an obvious dfifference for them. If in Forex trading is performed in the single market, futures trading implies transactions only in the frames of a particular stock market with a certain contract. It is worth noting that one of the advantages of Forex market is its liquidity allowing to realize assets within the shortest possible time and with a big profit for the trader. Moreover, in the futures market there is not such a notion as spread, the market does not provide a leverage to the trader which clearly distinguishes it from Forex.

Forex market is the biggest trading platform in the world with the highest liquidity. The total amount of daily transactions made in the market reaches 1.5 billion dollars. In the futures market this turnover is considerably less and takes up around 25 mln dollars.

One more thing is that Forex works almost 24/7 without any restrictions for the traders which allows to make transactions according to the chosen strategy at the most convenient time. The futures market is not so flexible. One can make transactions only at clear-cut time. An obvious disadvantage of the futures market is the necessity to pay for different services via mediators which does not really satisfies traders. The plus of Forex market is that a trader has the opportunity to manage only the amount available on the account in contrast to the futures market where the transaction can be closed with negative positions followed by after-payment.Forex market can probably offer more opportunities to traders-beginners as it does not require a big capital to start trading. And finally the chance to improve and master new trading platforms will finally allow a trader to achieve a new, higher professional level and increase funds.

Best swaps among other companies

Our company has refused from the well-known scheme of earning money on spreads against the clients. That is why we offer you swaps without any commissions. Now you will not have to overpay.

Forex News from New Forex: Technical analysis of EUR/USD

In the morning tradings on Monday the pair trades within the support at 1.1129 and resistance at 1.1179. On a four-hour timeframe a clear price consolidation is seen within this range, the celebration of Easter Monday in Europe, Canada, Australia and New Zealand contributes to it.

Thus, we do not expect any considerable changes in the afternoon until the opening of tradings in the USA and the release of statistic data on Personal Consumption Expenditures in the USA.

The current market sentiment is bearish, in the short run Eurobears are aimed at pushing the market to 1.0950. The MACD-histogram moves below its central line being almost parallel to it. The RSI is weak, the Stochastic sends a signal to sell in the short run.

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NewForex Analyst

Luigi Campo

Forex News from New Forex: Technical analysis of GBP/USD

On Monday tradings the currency pair has a slight bullish sentiment within the support at 1.4011 and resistance at 1.4181. Exponential moving averages with periods 20 and 55 (EMA20, EMA55) have crossed downwards and decline, the MACD-histogram remains below its central line and is going to rise.

The oscillator Stochastic reversed upwards and ascends which provides the opportunity to enter the market with a long position in the short run. Meanwhile, the movement is likely to turn into a firm long-run uptrend to 1.4450 and further to 1.4600.

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NewForex Analyst

Luigi Campo

Fixed Spreads

NewForex offers fixed spreads. Therefore, now the difference between the purchase price and the currency sale is fixed. Now it is not affected by the quotation fluctuations.

Rebate - what is it and how useful it might be for a trader

A lot of traders probably came across such a notion as «rebate». This notion is quite often used by brokerage offices. So what does it mean and why do brokerage offices pay a big attention to work with rebate?

A Rrebate is an amount paid by way of reduction, return, or refund on what was paid or contributed. One of the main tasks of brokerage offices is the client capture and rebate undoubtedly contributes to the solution of this task.

For instance, the brokerage office pays its client 10 dollars for every lot from the total amount of transactions. In this respect one might have a question if the income of the brokerage office is based only on spread, then why should it share its profit with a client? If we study this question more carefully, we may notice a veiled psychological trick used by the brokerage office. At the first glance everything looks wonderful. However, the subtle aspect implies that some traders may have the impression of having the opportunity to earn with a rebate. They try to make as many transactions as possible, overrating the volume of their open positions, thus contributing to the growth of income of the brokerage office but excessively increasing the risk of personal trading. As a result if the trader falls for this trick, the brokerage office will get its profit from every client’s closed transaction anyway. But the trader will have nothing to withdraw as this trading will be unprofitable for him/her and the rebate of the part of spread will definitely not compensate the losses.

The situation differs if the partial rebate of spread is offered by the partner of the brokerage office. In this case a trader does not have a direct replenishment until the end of a month’s time after which the partner of the brokerage office will transfer funds to the account. In such a circumstance the trader has the right to receive spare money which can be managed in the client’s discretion. Let us assume that a trader made some transactions within a month the total volume of which equals 20 lots. According to the affiliate program the brokerage office deposits the partner at least 50% from spread which in money terms is $300. Then the partner shares this money with the trader sending a half from the amount which was transferred by the brokerage office. In this situation the trader gets $150 for work and the partner of the brokerage office has its $150. It means that the trader becomes a partner of the brokerage office and gets income while making transactions without being bothered by various accruals from every transaction.

Forex News from New Forex: Technical analysis of USD/JPY

On Friday the currency pair trades with a slight bullish sentiment within the level of support at 112.60 and resistance at 113.32. During the Asian trading session the quotes jumped to a week high, but the price has not breached the current level of resistance.

A steady rise was observed during the whole week. However, the tendency did not break the main bearish sentiment. Exponential moving averages EMA20 and EMA55 still decline, the MACD-histogram stands above its central line but has a downtrend. RSI shows that the rising market loses its power. The Stochastic approached the zone of overbought and sends a signal to sell.

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NewForex Analyst

Luigi Campo

Forex News from New Forex: Technical analysis of EUR/USD

In the trading on Friday the descending dynamics started to slowdown, most markets are closed (except for Japan and the USA) due to the celebration of Good Friday. Thus, we do not expect fundamental changes in the power balance between bulls and bears.

The price remains within the support at 1.1137 and resistance at 1.1182. Exponential moving averages EMA20 and EMA55 decline after the yesterday’s crossing downwards. MACD and RSI stand below their central lines and go down, although a bit slowing down. The Stochastic sends a signal to buy.

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NewForex Analyst

Luigi Campo

Forex trading without spreads

Our company gives an opportunity to trade without any spreads. This strategy will simplify work for both a professional and a beginner. The process of trading becomes more vivid, the application process of technical analysis mounts efficiently.

Forex market - a play or permanent work (Part 2)

In the first part of the article it was highlighted how necessary it is for every trader to ask himself or herself a question: What am I doing in the market? After giving a really sincere and honest reply, compare it with one of the variants provided. The first variant of the the trader’s attitude to work in Forex was described before and now we are going to discuss the second one.

The second variant

There are traders who pretend that they are trading although they can insist on working in Forex market. The working hours of such traders are chaotic. They get up and go to bed when they want, they can afford to watch an exciting movie in the break, chat in social networks, in forums or simply play online games at odd times. And this “work” takes all day.

They can indulge themselves during the trading increasing risks. It might seem to them that the market situation is developing in the way that the trade must be 100% profitable.In this case they can take risks hoping to make profit right now rather than accumulate missed profit within few weeeks. Such traders treat some points from rules with certain negligence although they are inseperable parts of their trading strategy.

However, it is worth saying that such kind of traders can be in the martket for quite a long time. They usualy have trading experience of one-two years but they often consider themselves professionals and even experts in the shpere of trading. This overestimated approach leads to the situation when they allow themselves to change the system rules in the middle of the trade or completely neglect them. Traders might believe that they know qiute a lot and can feel the market adjusting to its requirements. They usually prefer to be in the process of trading and feel uncomfortable without an open trade. Probably this attitude to trading occurs as being outside the market they feel that they are wasting time. That’s why to open a trade at the first opportunity is a common situation for these people.

As a rule such trades end up quite sadly. After wasting plenty of time and possible several big profits, traders inevitably reach the state when they get a Margin Call and finally lose their funds. Exactly about these traders it is said they play in Forex market.

Having discussed both variants characterizing this or that type of traders, every trader can look at himself or herself from the outside and realize what type they belong to. If it turns out that the answer is the second one and most of the enumerated features coincide with your type of trading, then it is necessary to change something. It might be recommended to try to organize yourself both in trading and on vocation, do everything possible so that the attitude to trading will comply with the first variant. Only in this case one may say that Forex market is a full-time job but not a play.

Forex News from New Forex: Technical analysis of EUR/USD

On Thursday trades have an obvious bearish sentiment within the level of support at 1.1122 and the level of resistance at 1.1203. The market has been steadily declining since the end of the last week. Starting from March 18th every trading session closed with a firm bearish candlestick which implies the intention of bears to consolidate their advantage and exert further pressure on the market.

Exponential moving averages EMA20 and 55 crossed downwards and keep descending. The indicators MACD and RSI are under their central lines and also demonstrate a downward trend. The oscillator Stochastic is moving towards the zone of oversold which implies a further development of the bearish scenario in the short run.

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NewForex Analyst

Luigi Campo

Leverage

NewForex meets the wishes of our clients. Even if you do not have enough capital, you can increase the size of operations and income . It is possible to do it with the help of the borrowed funds. Therefore, leverage is a ratio of disposed funds to borrowed.The bigger the sum is when you open the account, the more will be provided to you by the company.

Forex market — a play or permanent work? (Part 1)

Why do people take up trading and come to Forex? - that is a question frequently asked in forums. There might be various answers to this question, although in most cases it’s a wish to achieve financial independence and to be self-employed and not to work for the boss. There are, of course, those who dream about making millions. Such intentions are undoubtedly great but setting such ambitious goals some people do very little to achieve them.

Every trader can ask himself or herself this question and the answer will probably coincide нахождениюwith the answers of other traders. But a more interesting question is: What am I doing in the market? Giving a sincere answer, a trader can compare it with one of the answers provided below.

The first variant

There are a lot of people who really work in the market keeping the situation under control. However, it does not mean that they spend days and nights at the terminal and follow the price movement. In fact it’s vice versa, traders have enough time to relax as well. Having a rest is a part of their trading strategy. Although they almost slave away keeping strictly to all the points of their trading strategy. It’s significat to point out that they really fulfill all the points of the rules, everything to the minutest detail including trading signals and money management. As a rule these traders achieve success. They gradually nurture their will power which contributes to feeling comfortable in the market conditions and finally brings profit. And time free from trading but nevertheless working time traders spend on improving their trading systems or getting new knowledge.

Exactly for these traders Forex trading turns into work. And it’s not a simple work but a permanent, hard but favoutire work. They are fans of the market because it’s endlessly interesting for them! The market usually likes educated, calm, hard-working and strong-willed people. And the market is ready to share its wealth first of all with these people.

Deposit Size

It is very easy to enter the world of financial trading. But first of all, you should accept the terms of the Public Offer agreement. This document is valid as any law agreement although it does not require your signature. After that you are provided an opportunity to register and to open your trading account. Top up your account during 30 days after the registration. The sum varies depending on the type of the trading account that you have chosen. You have to put down your e-mail in the register form so that we could send you the registration number and all the instructions.

Can robots trade in Forex? (Part 2)

The question might seem controversial but if you study it in detail then you can give a positive answer and confirm that yes robots can trade in Forex market and bring profit to a trader.

Why do we have hesitations then? Although there might be no hesitations but plenty of questions regarding the usage of advisors. Advisors have gained in quite widespread popularity. A lot of traders especially beginners keep a close watch on this trend in trading.

And here it is worth thinking about “why it happens that 95% of beginners in trading as a rule lose”... An addiction to easy prey is typical of many people and the opportunity to get it by means of an advisor attracts a considerable amount of traders. People usually download from the Internet robot-champions or pay for super lucrative personal funds, however, in most cases it does not bring handsome profit.

In order to assure yourself of the hopelessness of these operations, a trader should ask himself or herself a simple question and find an answer on it. How long is the trader going to use a robot and what profit should it bring? If a trader is determined to work with a robot on a permanent basis, then it may be firmly said that this path leads to nowhere. One may get profit with the help of an advisor but it probably won’t last as long as it is wished by a trader. For instance, an advisor brings profit for two weeks, maybe two months but then the systems will definitely glitch and nobody know when it happens.

And nobody knows how hurtful it may be for the deposit. In this case a trader has only one way out — to trust the robot and become an onlooker who tries to predict if it will manage to find the right way or not. Thus, it might occur that instead of increasing your funds, the advisor may turn into a mechanism of destruction. Finally, it should be remembered that advisors are made by people and unfortunately people make mistakes.

Quite often people have a little bit wrong attitude to these programmes, especially beginners. It resembles the perception of information on the radio or TV by elderly people who take everything at its face value. This gullibility is sometimes used by advertisers with sticky fingers who distribute information about “magic pills” treating all deseases. The same happens with robots. Some believe that the fact of using it in the terminal says that it was developed by professionals and is a high-quality product. However, in reality it does not say anything. Nowadays almost everyone, who understands programming at least a bit, can create an advisor. That’s why it is important to understand who made this advisor. It might be a good trader but a bad programmer or vice versa. A great piece of luck is to meet a good trader and programmer in the one skin.

It is important to understand that buying an outside product a trader can not always rely on the fact that a software developer will come to assistance if an advisor starts glitching in trading. What might be the reasons of glitches? There may be plenty of causes for such kind behaviour of an advisor. In particular, it is wellknown that before becoming available for traders, every advisor passes a test on the quote history. But on the history one can see the behaviour of this or that pair in the past and how the advisor was working, however nobody can say how it will work in the future if the behaviour of the currency pair changes. It is very complicated for the developer to take into account all the nuances the appearance which can not be excluded. In this case you can face with a situation when an advisor works incorrectly with the trader’s deposit.

Usually the developer adjusts the work of an advisor to the history of quotes which is available. Sometimes it happens without relying on any rules just by by trial and error. But the quality of such kind of adjustment is unknown even for a developer. Quite often a certain part from the history of the graphical layout is chosen and the work of the advisor is attached to it. But if you study the history, it will be very difficult to find identical parts of the graph, thus it becomes clear that a test activity takes into consideration particular cases which took place in the past.

However, when a beginner in trading gets an advisor he or she hardly ever thinks about it because this purchase seems a complete solution of all financial issues and hopefully forever.

And at this moment there comes up a strategy question which a lot of traders prefer not to think about and do everything to avoid this awkward question. Although having a creative approach to it and systematizing your work with the installed advisors tracking down on time those which glitch, loading those which work accurately and taking out of service advisors which do not work, the result will be much better. It is worth highlighting once more that it is not easy to tackle this problem, you should learn to think and study a lot.

Another efficient way of applying an advisor is the automation of the decision-making according to the personal strategy. This way of automation is considered as the most rational and correct one from the point of view of the closing gain. In this case a trader relies on the efficiently working strategy with an understandable algorithm of work which is fully or partially realised with the help of an advisor. An undeniable advantage of this decision regarding the automation of trading is that a trader completely realizes the working system of an advisor and can make alterations in its work at any time which is hardly possible with a purchased advisor as in most cases it is given as a black box.

Thus, making a conclusion to the conversation about advisors we would like to remind once more that money doesn’t grow on trees. Everone who wants to make money and increase the capital in Forex market should concentrate on permanent study and serious patient labour.

Forex News from New Forex: Technical analysis of EUR/USD

On Tuesday the pair trades with a slight bearish sentiment within the level of support at 1.1211 and the level of resistance at 1.1274. Two previous trading sessions closed with firm bearish candlesticks which implies the market intention to keep a descending trend in the short-term. EMA 20 and 55 are rising, but they crossed locally which can be seen in an hour chart. Thus, according to the oscillator Stochastic, which entered the zone of overbought, during an intraday trading it would be sensible to follow the bears. In a four-hour timeframe the situation is slightly different. The MACD-histogram is directed upwards but still remains above its central line, the Stochastic is in the zone of oversold. Here we can expect a further market growth after the current correction. EMA20 and 55 are rising, it implies that the pair has the opportunity to stay within the current ascending trend if bulls gain support, for instance, after upbeat Eurozone statistic data.

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NewForex Analyst

Michael Butnitsky