good evening. at the moment I am in the process of learning. according to my friend, I should also learn about chart patterns or candlestick patterns.
I'm still confused. after reading articles about chart patterns on seputarforex, I'm a bit confused about distinguishing between a pennant pattern and a triangle pattern (like a symmetrical triangle) and its utilization (reversal/continuation). please explain. thank you for sending it to my email. thank you.
@ Keser:
Similarities between pennant and triangle patterns:
1. Both are triangular in shape.
2. Both indicate a state of consolidation, which at some point will break the resistance or support line of the triangle and continue with a trending movement.
Differences between pennant and triangle patterns:
1. The pennant pattern is a symmetrical triangle in trending conditions (both during an uptrend or downtrend), while the triangle pattern can be a symmetrical triangle, an ascending triangle, or a descending triangle and does not necessarily occur in trending conditions.
As the name suggests, a pennant is always supported by a pole (flagpole), which in this case is the current trending price movement.
2. The pennant pattern is a trend continuation pattern while the triangle pattern can be a trend continuation or a trend reversal pattern.
3. The pennant pattern shows short-term consolidation while the triangle can be short-term or long-term, thus the pennant pattern usually occurs in a relatively short period of time compared to the triangle pattern. So pennants usually form on relatively low time frames.
Thank you very much in advance. I'm waiting for your answer. The plan is to start real trading in 3-4 months. I want to practice on demo first. Once again thank you (or maybe there is input, sir, on how it is best to do before jumping into real trading)
@ Keser:
Your perception is reversed, stop loss (SL) should be determined in monetary units, not in pips. Even if you want a constant SL, for example always 50 pips, the amount of risk per trade you are willing to take (agree to) must be measured in monetary units, not in pips, usually as a percentage of balance or equity.
- for example, if we deposit with $200 micro acc SL 50 pips, how much $ should be prepared (sacrificed) for loss each time we trade and what is the lot size so that it can afford to survive for dozens of trades.
Answer:
According to the above information, with USD 200 funds you can determine the amount of risk per trade, for example 5%, then the amount of risk per trade is USD 200 x 5% = USD 10. If you are trading with a micro account or 0.01 of a standard lot (0.01 lot) where for 1 micro lot of direct currency pairs (XXX/USD) for example EUR/USD, GBP/USD etc. the value per pip is USD 0.1.
For example, if you trade EUR/USD at 0.01 lot with a 5% risk then the SL is (USD 10 / USD 0.1) = 100 pips. Well, if you want an SL of 50 pips then you have to trade (100 pips / 50 pips) x 0.01 lot = 0.02 lot where the value per pip for EUR/USD is USD 0.2.
Note: experienced traders suggest that the maximum risk should not be more than 5%
- what about $1000 micro acc or mini acc SL 50 pips, how much $ should be sacrificed for loss each time you trade and what is the lot size.
Answer:
From our answer above, you can calculate it yourself. For a mini lot, you trade with 0.1 lot of a standard lot (0.1 lot), where for XXX/USD pairs the value of 1 pip = USD 1.
- with that amount of funds, is it better to be a day trader or a swing trader?
Answer:
The amount of funds does not determine a person's trading type. You can be a scalper, day trader or swinger with any amount of funds. For your own trading type you determine it yourself, adjust it to your comfort when you are still trading in a demo account, more comfortable as a scalper, day trader or swinger.
God will reward your kindness
Thank you in advance.
@ Keser:
Thank you too.
- Why do brokers have order execution using INSTANS EXECUTION and MARKET EXECUTION commands, and what is the difference?
Answer: Instant execution or market price execution is a buy or sell order based on the current price (market price), and pending order is a buy or sell order based on a specific price level that you plan.
Brokers provide these facilities to suit the needs of traders because there are traders who want to enter at the current price (e.g., scalpers), and there are also those who want to enter at a specific price level that has been planned.
- Does this indicate the type of broker, NDD or DD? What is the principal difference between the two, and for retail traders with limited funds, say around $1000 - $2000 or less, which broker is more profitable?
Answer:
No. Both NDD and DD brokers have instant execution and pending order facilities.
An NDD broker is a broker whose orders are thrown into the market, and a DD broker is a broker whose orders are held. If you trade with a DD broker, you are trading against the broker because if you profit, it will be paid from the broker's pocket. DD brokers are commonly called market maker brokers.
Regardless of the amount of funds, you should choose an NDD broker to avoid the risk because a market maker broker can go bankrupt one day and your funds will not be paid.
- What about the understanding of market maker in brokers? Does each type of broker affect the size of the spread, commission, slippage, quote (or requote?), how does the imposition of spread and commission relate to the size of the lot (e.g., 0.01 lot is different from 0.03 - as is 0.1 with 0.3), and how is the spread calculated each time a position is opened when using Averaging or Martingle strategies?
Answer:
A market maker is a market creator himself, usually associated with market maker brokers.
The type of broker does not affect the spread. Every broker will have a spread because the broker's profit is actually in the spread.
For commissions, as far as I know, only local brokers charge commissions per trade. Foreign brokers of the ECN type also charge commissions but not large ones. The size of the commission is determined by the broker, usually the larger the lot size, the larger the commission. The trading strategy you use has nothing to do with the size of the commission.
- What is the understanding of the pyramid strategy?
Answer: The pyramiding strategy is to add a position with the same lot size when in profit, while shifting the stop loss level to the breakeven level (the break-even level). Pyramiding is done to maximize profit.
- What about the understanding of Stop Hunting? Is it true that it happens at some brokers and which type of broker is it? How do you deal with it?
Answer:
Stop hunting is the process of manipulating price movements so that stop losses can be executed and, if possible, as quickly as possible. This manipulation is usually done by brokers who are not properly regulated, usually dealing desk or market maker brokers, with the aim of making traders always lose and thus their funds will go into the broker's pocket. For brokers that are properly regulated, namely brokers regulated by a credible international regulatory body, will not do this because the sanctions are severe, even to the revocation of the operating license.
To deal with it, don't trade with stop hunter brokers, or if you've already been caught and know about stop hunting, quickly withdraw and move to a proper broker.
- What about Alpari and Hotforex brokers? What type of broker are they? What are the pros and cons (especially for retail traders)?
Answer: Alpari is a fairly large broker that is properly regulated, with retail trader customers spread all over the world.
HotForex is only officially regulated by CySEC Cyprus and recently registered with the FCA UK. Read its profile at: Broker Forex HotForex
As far as I know, Alpari is a DD broker, I don't know about HotForex.
If I were to choose, I would choose the one with clear regulation, which is Alpari.
@ Keser:
-…But at certain brokers, for example HotForex, why doesn't it use INSTANT EXECUTION but uses MARKET EXECUTION? If you could tell me why and on what basis or consideration?
Answer: The terms Instant Execution and Market Execution are the same. The use of the terms depends on the broker's preference. The bottom line is that both terms refer to order execution at the current market price, so it is not a pending order.
-…. What about the spread, is opening a position with a lot of 0.01 or 0.03 or even 0.1 the same spread size? or Perhaps you could give an example with the application of the martingale strategy....
Answer: The size of the spread is not determined by the lot size, but by the level of price volatility in the market. The higher the volatility, the wider the spread, regardless of the lot you trade.
The size of the spread has nothing to do with martingale. Martingale is a trading strategy that is not dependent on the spread. The size of the spread will only affect traders who use the scalping strategy.
-…. Likewise with MFX (is this broker safe) or InstaForex why use INSTANT EXECUITON? or perhaps because it is included in the criteria of a dealing broker?
Answer: MFX Broker (formerly MasterForex) is currently having problems. Read: MFX Broker Case: License Revoked, Traders Not Paid and MFX Broker Testimonials
The use of Instant Execution has nothing to do with whether a broker is a dealing broker or not.
- What is the difference between the Pyramid and Averaging Up strategies?
Answer: Averaging has 2 types, for positions when losing (like martingale but the lot is not doubled), and when the position is profitable. In this case, when the position is profitable. The difference with pyramiding is that in pyramiding the stop loss is moved to the breakeven level while in averaging (when profitable) the stop loss can be moved or not, usually it is not moved.
Read also: Pyramiding - Money Management Strategy to Increase Profits
-…. it is better to use which Alpari y. because I once read in an SF article that Alpari UK closed, and then brokers located in Russia are identical to unregulated brokers even though Alpari Russia also exists, right?
Answer: Regarding Alpari brokers, previously only Alpari UK (regulated by FCA UK) and Alpari US (regulated by NFA) were regulated. In 2013 Alpari US was taken over by FXCM US, and recently FXCM US was also taken over by Gain Capital (Forex.com), a large broker that has been listed on the NYSE. Read: FXCM Transfers Clients To Gain Capital, 150 Staff Laid Off
In 2015 Alpari UK declared bankruptcy and was acquired by ETX Capital, also a regulated broker from the UK.
Although Alpari is now in many countries, it is necessary to check the regulations, because as far as I know, Alpari's regulations are from the Bank of Russia, IFSC (Belize), and NBRB (Belarus).
For Alpari in Indonesia, you can read: Alpari Broker Profile
If you want to trade, we suggest that you check the regulations for the safety of your funds in case something happens.
once again, thank you very much.
once again, thank you very much.