Peculiarities of trading on Forex by weekdays

January 13th, 2010

As a rule, currency pairs’ movement on Forex market is directed, i.e. trend which is clearly determined after it finished. However, for more efficient work traders should know its direction at the beginning of a week.

Factors forming trend on Forex market:

Two factors can help you to determine the direction of weekly trend:

  1. Friday currency pairs movement on American stock exchange.
  2. Opening GAP (significant difference between the price at the end of previous and beginning of following day) at midnight from Sunday to Monday (Asian session). The result is currency pairs draw their resistance levels, breaking through one of them they turn it into support level, push off from it and will move in this direction the whole week.

Between American session on Monday and Asian session on Friday the channel of pikes resistance levels (by fractals and zigzags) determines the starting point of currency pairs breaking through up and down and as a rule, the whole week move in the preset direction.

The first and fundamental moment of currency pairs’ behavior on Forex market is their movement on Friday at American stock exchange. It is test through released news, strength and trend direction.

If extremely negative or positive news issue did not influence the currency pairs’ fluctuations on Forex market on Friday, it means that brokers and banks were not ready to such fluctuations and movement will start on Monday.

There are two variants of developments, if currency made abrupt jump in trend:

  1. New trend wave, for example 400 pips, which currency pairs moved in for the previous week, turns by Elliot into the first wave and the third wave in the same direction will be equal to 640 pips which is 60 % longer.
  2. Being at the beginning of medium-term trend wave from h4 to daily and weekly charts in this case pullbacks are from 23% to 62% – movement is trend-forming – new week – new jump along the trend.

If during the American session on Friday currency on Forex market did not start its movement it means that brokers can not determine the trend or movement direction for the next week and this direction will be known only on Monday.

We can make a conclusion from all above: depending on the Elliot waves’ behavior Friday determines the currency movement for the beginning of the next week.

  1. If potential trend strength is very big and there was leap in trend on Friday, then on Monday correction or reverse or news wave in trend is expected.
  2. If on Friday currency jumped against the trend, then this Friday movement will turn into correction or the first wave of reversed trend.
  3. If currency did not start its movement on Friday, it means we can expect the formation of movement on Monday or Tuesday.

One more Forex market peculiarity is analysis of news calendar for the next week. Events which can influence trend’s mood and all corrections should be pointed out.

There is also characteristics which was noticed by A. Elder – you should pay attention to the gap which appears at midnight to Monday – whether currency pairs of allies opened up or down and what direction currency will move after that at Asian trading session – as a rule, the same direction currency will move the next week.

To earn at Forex market, you should understand that intraday trend does not exist by itself.

The main conclusion which should be made by a trader: currency moves the main part of its distance before the news release and just a little movement can be noticed when news was officially confirmed in case it has justifies the forecasts.

To be right, trader should observe only two rules:

  1. It is necessary to use strong movement during the whole week in direction of published news.
  2. You should be ready for reverse if the news did no justify expectations.

Added by Alexey Talesnik,

InstaForex Clients´ relationship manager

Merry Christmas and Happy New Year!

December 24th, 2009


Dear clients, partners and friends!

InstaForex Company sincerely congratulates you with upcoming holidays: Christmas and New Year 2010! The expiring year became a serious challenge for many of us, but we achieved the considerable success and in the coming year we are not going to recede from the chosen course!

We wish all our clients the professional growth in trading world, profitable trend and favorable forecasts! We wish you luck and success in business, new opportunities and perspectives!

We wish our partners all-round development, and also we hope that in 2010 we will have only the effective cooperation and maturing of our partnership relations!

Happy New Year 2010!

Sincerely yours,
InstaForex Team

InstaForex successfully took part in ShowFx Asia exposition

December 21st, 2009

Exposition organized by international exhibition brand ShowFx Asia was successfully held in Kuala-Lumpur on 14th and 15th of November. Besides numerous guests, six independent projects took part in the exhibition. InstaForex was one of them.

Exhibition in Kuala-Lumpur was held in friendly and professional atmosphere of constructive dialog between financial market participants and users of their services. For numerous traders attended the exposition, participation in this event became a great opportunity to meet representatives of InstaForex and it’s local partners at one platform.

During the event, money prizes and gifts were drawn. Besides, numerous souvenirs and bonuses from InstaForex were presented to visitors. Also it worth mentioning that by the end of exposition the company got personalize certificate.

Two exhibition days were marked by interesting speeches of lecturers and Forex-teachers, among which we can point out the following projects, themes and lecturers: Choo Koon Lip (Currency Pair Interaction – How to profit from the Correlation, and Choosing the Profitable Automated Forex Strategies to Trade for You); Asri Mahmood (Profitable Median Trading In Ranging Markets and Fundamental News Trading); Ismail Muhammad (High Probability Forex Trading with Japanese Renko Charts and High Probability Trading Setups for Entry and Exit for Forex Market using Insta Pips Hero and Swing Master), and also speeches of Forex Asia Academy representatives.

InstaForex thanks all guests of the exhibition and looks forward to see all of them at the next expo, which the company will take part in.

View the photoreport.

Added by Vladimir Syrov,

InstaForex Chief development manager

ShowFx World Moscow EXPO: results, achievements, advances

December 18th, 2009

On December 4 – 5 the international exhibition ShowFx World took place in Moscow. Awards in more than 10 nominations were handed out within the expo. The most prestigious among them – “The Best Broker of Russia” was taken by InstaForex Company.

The decision about InstaForex participation in the event was dictated by the active position of providing services within Russia and Commonwealth of Independent States. As explained by the company’s management, participation in ShowFx World exhibition is a great opportunity to converse directly with the current and potential clients and also to represent new services and possibilities.

During 2 days of ShowFx World holding in InstaForex exhibitional sector there was a chance not only to learn about new trading conditions, advantages, trading account types or forms of a client support, but also to win money prizes and bonuses. Besides, InstaForex representatives provided services of online opening and instant depositing of trading accounts.

As can be seen from above, the company’s stand was over great demand of visitors during all days of the expo holding.

InstaForex Company thanks all exhibition guests and participants, who have visited our stand, and expects to meet them all at the next expo.

View the photoreport

Added by Ekaterina Abramova,

PR-manager of InstaForex

InstaForex – new micro-Forex leader?

December 1st, 2009

Dmitry Savchecnko, InstaForex deputy director gave an interview to the traders’ online-magazine “Stock exchange leader”. We have translated it for our blog-readers.

Is Forex broker a casino, and is MT4 a new form of roulette wheel?

SEL: The number of dealing centers amounts to tens and always increases. Traders’ opinion concerning a broker as about a group of businessmen, who bought MT4 trading terminal (“roulette without risk of loss”) and collect money with the only aim to share it between each other, is not a secret for you. 97% of traders lose their money themselves, 3% are helped by dealing centers, those who succeed to earn are not given with their profit by brokers. There are already 5 cases of profit not paid by different Forex brokerage companies among the Academy audience. Is traders’ opinion about dealing centers and Forex-brokers correct or not?

DS: It is rather true. Forex-brokers are reflection of our life, which has everything in, and it is important to distinguish one from another. There are dealing centers and brokers in Russian Federation as well as abroad, which fall under the described scheme. Every trader should be able to pay his/her attention to nuances, which really can help to tell a safe broker from a “bucketshop”.

How can trader tell respectable broker from a “bucketshop”?

DS: All criteria of a trustful broker, which you can find in the Internet (paid hosting, analytics and so on), became obsolete – all have paid sites and almost every broker provides analytics. Search an answer to your question in 2 directions:

- who, when and why has established his/her dealing center?

- how much has he/she invested in the business?

If you see ads, how “a group of experienced traders” left trading with no reason and decided to felicitate people by opening a new brokerage company… or how quite new dealing center suddenly announces about unexampled trading conditions, I doubt whether it is something serious. However, there are so many traps in our live, so it is hard to remember, which one you have not been lured into yet.

SEL: Ok. Let’s consider an exact example. I am a trader, who would like to open 1000 US dollars account with you. What does happen to my money, especially if I start making profit?

DS: Nothing really will happen to your funds. They will be at your balance and be increasing or reducing in accordance with the effectiveness of your work. InstaForex is a major international Forex-broker with more than solid investments. We make profit only by spread. We came into the market not for 1 month or 1 year. We are going to stay there as long as it will be possible. That is why it is inexpediently for us to apply “dirty schemes” or play with trust management. We have formed client’s portfolio, that is why we successfully develop due to the only and absolutely transparent source of income – spread from deals.

So I would like to advice once again all active and potential clients to separate the wheat from the tares.

Why does InstaForex gift Hummers to the best traders?

SEL: Who established InstaForex Company and what for? I watch you for a long time. At first, big prizes for contests among demo-accounts, then the greatest campaign in the Internet “Hummer H3 to a jammy fellow”. Are the costs repaid in circumstances of the global financial crisis?

DS: You hit the mark, the sense of our company and its difference from other world brokers is work for future. InstaForex Companies Group is a group of investment companies from different corners of the Earth, understanding well that investments as distinct from currency speculations are LONG-term projects.

Why did we come to the brokerage service market and start occupying it intensively? Because we saw who and what for launches brokerage companies and what services are provided to traders. It looks terrible from the inside. Our style is unique, we first started investing in traders, who need to be brought up. The majority of dealing centers (in contrast with investors) absolutely don’t need it.

SEL: We have noticed this by InstaForex relation to Masterforex-V Academy. While some companies prohibit any mentioning of MF, your staff even send traders to us for education.

DS: Relation to your Academy is also evaluating criteria for Forex-broker – which brokers need experienced traders and which don’t. We do not only recommend Masterforex-V to the most talented traders, but in the nearest future we will make the next step within our strategy of trader and investor interests’ combination. Now we are carrying on talks with MF regarding organization of wide-ranging contest among the Academy members during 1 – 2 months with big prizes.

For example, the first prize-taker in the demo-contest among the MF Academy audience will get 3 thousands USD in cash and 30 thousands USD as initial deposit to trust management account. If trading is profitable, an investor account will not be limited by volume. There are no investment problems in the world (even under the conditions of the global financial crisis), there are other problems (traders’, investors’). We are planning to held such contest (with checking stop-out and other criteria by our investment department) regularly.

SEL: Describe the main steps of your company’s development. What is done already, and what do you have to do?

DS: Our first step as respectable company – creating the biggest in the world network of branches with providing services from micro-accounts to the highest investors’ deposits – is already done. Branch network is opened in 30 countries of the world and it will be increasing. Moreover, an important constituent of the company’s growth is valuable providing micro-real accounts services. In InstaForex Company 1 lot can be diminished to 10000 units of account, what in its turn allows a client to have several accounts in one at once. Also a trader easily can trade using different volumes from 0.01 lot. Therein lies an advantage and a popularity of micro-accounts. Our company works with micro-accounts during long period, and it may safely be said that the company’s micro-real accounts are much sought after, what makes us one of the leaders in this area.

The second InstaForex step is our own investment in successful traders. Serious investors require experienced traders, who need to be brought up, selected and combined with investors, then sign a contract with severe conditions and control finance. It is not necessary to convince investors of putting up money (like government officials do, not understanding the investors’ logic). You should better demonstrate them benefit by the example of profit-making traders results. In our turn, we guarantee qualitative service for investor to be able to overlook and choose trustful manager for himself within a work of PAMM-account system.

The third InstaForex step will be more surprising. So and in no other way you can take and keep the leading position in the brokerage service niche – providing the services, which no one could or did not want provide before you.

SEL: Thank you. It is pleasant to see the brokerage company of a new type, trying to combine the interests of traders and investors, as well as to write in short time, that InstaForex Company became the certain world leader of micro-accounts. What would you like to wish traders-beginners?

DS: Thank you. First of all “learn, learn and learn again”. There are no investor’s funds problem in the world, but there is a serious problem of experienced and stably making profit traders deficit.

Source is “Stock exchange leader”

The interview was obtained by Darika Isakova,
interpreter-translator of InstaForex