The most popular technical indicators for working on Forex

High technologies surround us in our everyday life and perhaps, they have touched every sphere. There are more and more gadgets, new programs, and information in the digital environment. Of course, these processes have not gone past the financial market. Mathematical models and various interpretations of trading algorithms today are among the main tools used by the fix api trader ( ).

Technical indicators are among the most popular software solutions for analyzing the financial asset movement. These are small programs that based on the mathematical calculations of the asset price reflect the current situation and predict the future value of the asset price quotations. To say it simple, the indicators are essentially the movement of asset price in representation of mathematical calculations. If you are already familiar with some technical indicators, imagine the Moving Average indicator. If you are just starting to get acquainted with the market, today I will consider the most popular representatives of this group of technical analysis.

  1. Moving Average . I already spoke about this indicator, but I want to expand a bit its significance. MA is used to determine the trend in the market and the current situation. Maybe someone will say that the signals of this indicator are belated, and he will be right. However, the essence and purpose of МА is not to give the entry point, but to analyze the asset. And this is its main purpose.
  2. Alligator. It is based on the MA logic and displays simultaneously three lines of medium-slip with different periods. But the mathematical calculation of these lines differs in its methodology. The famous American trader Bill Williams has developed Alligator and he described it in his books. Today, it is a standard indicator in every trading terminal, which confirms the high popularity of this technique.
  3. MACD. This is a unique indicator that displays signals of both trend movement and overbought and oversold signals. The high value of its histograms gives information to the fix api trader about the deviation of values from the normative range. The MACD line and Signal indicate the entry point to the market. Also, divergence (a signal to the beginning of the corrective movement that occurs when the indicator values and price quotes are divergent) is a popular signal displayed by this indicator.
  4. ATR. A simple technical indicator that indicates only the current volatility in the market in points. It is a weak signal for analyzing the asset and opening a deal on it. However, everyone uses it to determine the stop loss level in the trading operation, i.e. how many points of volatility are determined and SL is set for this value.
  5. Bollinger Bands. Another technical indicator that indicates volatility on a financial instrument. Two auxiliary bands show how much this volatility deviates from the norm. Therefore, most traders interpret this indicator in different ways, and some people trade on the breakdown of its values, while others – on its retreat.
  6. Price Chanel. It indicates the lower threshold of price values. This is a kind of mathematical interpretation of support and resistance levels. This indicator displays the lower limit of price quotes for a certain period of time and the upper one. If the price breaks through this historical value, then you need to trade in the direction of breakdown.
  7. Stochastic. This is the most popular tool for determining overbought and oversold zones. This tool is also used in the search for correctional zones and speculative fix api trading. Personally, I advise you to take this indicator into account on the old timeframe and not open transactions on the working schedule, if the signals point in the opposite direction from the indicator’s values.
  8. RSI. Just like Stochastic, it also indicates overbought and oversold zones. Some traders prefer this particular indicator due to the longer generation of signals, which do not occur as often as it is in stochastic, but the principle of operation remains unchanged.

I want to note that in drawing up this list, I took into account the popularity of indicators among the traders and how many different interpretations of these indicators already exist in the market. I considered the classical meaning of each of them. The main criterion was how flexible the indicator could be integrated into the trading strategy. Moreover, on the basis of these indicators, entire individual trading systems are created. Each of them generates quality trading signals for trading on the fix api forex market and can become an additional filter in taking investment decisions.

Key blocks that should present in each trading strategy

The trading system is the most reliable source of obtaining net profit in the financial market. For some reason, most traders ignore it and continue to trade guided by the leadership from above. However, this approach does not lead to anything good and only provokes a loss of investment capital.

That’s why, I strongly recommend every stock speculator to take care of creating a trading strategy, which is a specific roadmap for the fix api trader. After all, trade as a business. It requires maximum focus on the result and systematization of all processes. And only this option for working in the fix api forex market is profitable.

To create your own trading strategy, you need to implement step-by-step blocks. These logical blocks will form a complete trading strategy.

Key blocks that should present in each trading strategy:

  1. The full description of the trading algorithm block. Before applying technical indicators or purchases/sales levels of the financial tool, you need to understand the internal structure. You should clearly understand whether your system is trendy or countertrend. Do you work on technical indicators or only on fundamental analysis? Also in this block, it is necessary to record the working time frame ( ), a list of tools and working hours. This will later allow you to find the weak point in the system and exclude it.
  2.  The tool analysis block. The second block presents the tool analysis. I mean the fact that you have to keep records of the asset analysis so that when a future signal appears, you can rely on the historical indicators. Here, you can record the status of the trend, the breakdown of the key turning points, and the influence of fundamental data on the tool.
  3.  The risk and money management block. This is the most important block in the trading strategy. I believe that the future result depends on it, since the risk control is already half of the success. In this block, it is necessary to specify the amount of the transaction in the fix api MT4 trading terminal, the risk percentage that will be included in the work of the trading strategy, and the risk percentage in the context of each trading operation.
  4.  The presence of trading signals to enter the trading position block. Here, you must already describe the factors under which you will trade. This can be both the intersection of the moving averages, and the retreat from the levels. It depends on your algorithm and trading methodology. But you must clearly know under what conditions you make a deal and follow only these parameters.
  5.  The presence of grounds for leaving the position block. If you have already opened a deal, you must clearly know where it should be closed. Thus, set stop loss and take profit. I recommend always to leave the market only taking in consideration these values and to not cancel the trailing stop conditions, so that in case of a correct forecast and the turn of the market you could come out with a minimum yield. Also, this block should be coordinated with the risk management, so that the exit from the transaction does not cause additional risks.
  6. The analysis of results block. I advise everyone to analyze their results and actions during the trade. This will eliminate the ineffective opening of positions on the basis of the operations that are already performed. Without this block, your will not be able to develop your trade in the future and introduce new and more effective analysis tools.

By realizing all these blocks, the trader will have at his disposal a ready-made trading strategy, which can be used in the fix api forex market. Moreover, if the results are successful, it will be possible to create a working algorithm ( ) on the basis of these blocks, so that the system can display results without additional intervention of the trader.

High-frequency trading

According to the US Bureau of Statistics, the development of information technology and automated systems has grown in more than 5 times during the past 10 years. Moreover, it still keeps rapidly increasing each year. The new online payment services, platforms for selling goods and services, as well as fund-raising have also developed throughout this time. The whole world has become digital and now it is possible to interact with the Internet in one click. The financial markets are also keeping pace with these trends.

Both private traders and institutional investors (banks, hedge funds) started using high technology products. The main task of the trader is to repeatedly follow a profitable algorithm using the most popular programming languages for the FIX API protocol – C #, python and java. So why not automate it?

High-frequency trading of HFT is such a trading, which allows completing deals of buying or selling forex financial instruments extremely fast. It is a type of trading, which is done by a robot, based on a specific algorithm. FIX API trader can directly trade at the interbank level avoiding the unnecessary delays from broker servers, which allows getting an advantage because there is no delay. Each trader uses a particular trading system, which consists of the certain parameters and principles. This system can be automated.

Because the entire HFT trading is done by robots, they can analyze the data very fast and make a decision whether to open a long or a short position. It creates an obvious advantage, based on the fact that the position is fixated on the FIX API protocol, which is used by most of the financial platforms worldwide. CQG fix api is, particularly, among the leaders.

What is the main principle of High-frequency trading

The increased market volatility is observed at the time of the opening of the exchange, the publication of financial statements of companies or changes in the monetary policy of the Central Bank. The maximum quantity of the high-frequency trading happens exactly at this time.

HFT robots are able to fix the micro results due to spread expansion, arbitrage correlation or the difference in volatility of quotations (usually of the currency pairs). Thus, a huge number of transactions allows reaching a positive rate of return. Of course, this requires a fix api broker, which gives an access to an open liquidity market.

What kind of HFT is the most popular and available for a simple trader?

The HFT algorithm differs within each investment company and is kept in secret. Wikipedia highlights four popular types of strategies, however, the arbitrage is more real and feasible for an ordinary trader. It is as a global principle of the HTF strategy.

An arbitrage is a trading strategy that takes into account the difference in quotations for the same asset due to a “temporary lag.” This type of trading can also be divided into 2 subtypes: FIX API Latency Arbitrage and FIX API 2-legs Arbitrage. The difference between these types is that robot, which follows FIX API Latency Arbitrage strategy finds the price difference for the same asset between the two brokers and opens the transactions with the “slower broker” (Latency Arbitrage). This strategy is often used with the help of lacquering open positions or the FIX API Lock Arbitrage principle. The second robot that works on the FIX API 2-legs Arbitrage strategy makes a purchase of the same asset from one broker and sells it from another one (2-legs Arbitrage). Since HFT completes an operation in a few microseconds, the robot makes several trading operations and record profits when the price of a share on one platform differs from the other with a minimum delay. In addition, the HFT robot can simultaneously analyze several stock exchanges and find the difference in price for the same asset. After that, it makes transactions considering the price delay on one exchange. In addition to the stock exchanges, the price can also differ for the instrument itself and the derivative asset. For example, the cost of shares is 100$, and the price of the derivative instrument is 100.01$. The price lasts for about a second and the robot would open a deal for the sale of a derivative asset during this time. This one cent would be profit for a trader. However, this is only 1 share. Can you imagine if there were 100 or 1000 of such shares per day? It would definitely turn into a significant profit for a company or a trader who has a trading robot.

Here is an example of the arbitrage deal, done by a trading robot:

HFT allows traders to get rid of a constant analysis of market fluctuations and concentrate on the optimizing and automating their trading system. Since the forex market is relatively volatile, you need a fix api forex broker in order to use HTF. This will increase the profitability due to the response speed of the robot, which is definitely beyond the capability of the ordinary person. Moreover, it is possible to build several trading algorithms based on HFT and thereby reduce risks as well as diversify an investment capital.

The 2 leg latency arbitrage

Each experienced trader, who has more than 10 years of trading experience has probably noticed how the trading process has changed. The list of trading instruments, derivative financial assets, and methods of market analysis significantly expanded through time. The new postulates of understanding the market trends appeared, such as the Elliott waves or the Williams’ “Trading Chaos”. Some of the popular trading systems are still successfully used. The complicated strategies have become more understandable and feasible due to the automated algorithm. Those things, that seemed unrealistic before have become easily applied in the nowadays trading. It all has become possible by virtue of the HFT trading, which makes possible such a trading that an ordinary trader finds as too complicated.

The core of the HFT trading lies in completing transactions of buying or selling in an automated mode with a help of the FIX API brokers. Thus, the profitability and trading result increase. Nowadays HTF is used by almost all investment companies, as it allows accomplishing such trading types, which are not possible for manual trading. It is also popular because of its simplicity of private traders. FIX API 2 leg latency arbitrage strategy is one of such trading types.

2 leg latency arbitrage or a “hedge arbitrage” is an arbitrage trading type that simultaneously opens a buying and selling deal of the same currency pair from the different brokers.

For reference: an arbitrage is a trading strategy that is based on a high-frequency trading for making speculative positions on exchange differences for the same asset (or derivative). It is usually done on various trading platforms.

It is crucially important to work via the fix API forex broker for a successful performance of 2 leg latency arbitrage strategy.

Here is how the 2 leg latency arbitrage works

The whole idea of this technique lies in its name, as the robot simultaneously buys and sells the same asset. The two different platforms are required for such trading. As a rule, these are two different broker companies. But what is the main idea of such trading?

Let’s investigate an example in order to understand the logic of the trading robot:

The EURUSD currency pair costs 1.07255 from one broker, and 1.07250 from the second one. Exactly these 5 pips of the difference are the profit. The robot will open the sale from the first and purchase from the second broker. It is not necessary to determine which broker would be “faster”, and which “slower”, however, it is needed for the second form of arbitrage trading – Fix API latency arbitrage.

What are the advantages of 2 leg latency arbitrage strategy?

The key advantage of this trading type is its simplicity. It is not necessary to determine which broker gets quotes faster. There is no need to constantly monitor the trading specifications of the brokerage company.

The second advantage is that such transactions are difficult to track. It is because the trading can be held for a few seconds. It is hard to identify the logic of the transaction, as the second part of it is done via another company. Thus, the broker can not affect the outcome of the trade.

Trading in the financial market is increasingly attracting attention with its simplicity. You can create a full-fledged trading algorithm that will consider all details of HFT trading with the help of public API fix programming languages ​​- java, C # or python. An unlimited access to any platform in the world would allow you to commit trading transactions without leaving home and turn the algorithmic trading into a passive source of income.

Complex forex trading strategies

The trading on the financial market is taking new forms each year. The new theories, trading algorithms and methods of market analysis appear. All of them contribute to the successful trading. However, some of the principles and systems, which have been already used for a couple of decades also help to gain profit on the financial market. Today we are going to investigate such complex systems as “Turtle trading system” and “Elliott wave theory, which have become an integral part of the FIX API trading.

The turtle trading system

Turtle trading system is a strategy, which is based on the levels probation. This probation points the system to the new trend formation. The system doesn’t “catch” the turning points, but follows the trend.

The “turtles” use a limited amount of the technical indicators:

– Donchian channel with a 10-day period;

– Donchian channel with a 20-day period;

– Donchian channel with a 55-day period;

– ATR.

This is basically it! There are only 2 indicators with different periods that can be used in the fix api mt4 trading terminal.

The signals for entering the deal

The deals are opened as the donchian channels breakthrough. As a rule, there are two types of signals for opening the deal:

  1. The price pierces the 55-day channel;
  2. The price pierces the 20-day channel.

Exiting the deal

Exiting the deal, according to the “turtle” system, is committed when the junior channel gets broken through in the opposite direction of the senior. For instance, if you are opening a deal for breaking through 20-day channel then the existing position or a level of loss restriction would be an upper bound of a 10-day channel.

Elliott wave theory

This theory was developed back in the 1930s and it still has its followers today. The principles of this theory have expanded and developed through years, but we are going to focus on the fundamentals. We would investigate the usage of waves pattern on the Forex market via the FIX API Forex brokers.

According to the Elliot, the market is moving, following particular cycles, which can be depicted in a form of waves. The wave stands for a clearly distinguishable price movement. The market can be located in the two periods – ascending and descending. Besides that, Elliott divides the waves into impulse and correction ones.

  1. Impulse wave. These waves create the price trend movement, ascending or descending (waves 1, 3, 5, A, C);
  2. Correction waves. These waves typically move against the trend and have a shorter cycle (waves 2, 4, B).

It is worth mentioning, that the each wave is characterized by different criteria and features. The third wave, for instance, is the longest one and the most suitable for suitable for trading with the trend. The fourth wave, on the other hand, is considered to be the most complicated and confusing one and the most part of the traders lose money in it. If you are having hard times spotting the Elliot waves pattern on the picture, then it is most likely that instrument is moving in the 4th wave. It means you should better not trade at the moment.

So, the trader can identify the reference points of the market waves and adapt his trading signals according to them, looking at any graph. It is also possible to forecast the further direction of the instrument and make the appropriate changes. It is important to note, that the waves computation should be done considering the graph, where there are at least 140 price bars or Japanese candles.

Let’s look at the example:

The first Elliot waves of a downward period can be clearly seen on the graph below. According to the Elliot theory, an ABC wave zigzag should be expected after the full 5 – waves cycle. In the case of GBPSGD this zigzag has most likely already begun in a rising A wave. A search of trading signals for a purchase may take place, considering our forecast

These strategies allow not only to predict the price movement but also to grasp a logic of its market behavior. Each of the complex trading systems can be easily applied by both a FIX API trader and a trading robot.

The classical arbitrage in the forex market

There are loads of instruments for the financial market analysis in the fix api forex market. They allow conducting a stable trading. Both algorithmic and manual strategies can be referred to these instruments. However, today we are going to examine one of the very first ways to commit speculative positions, namely the classical arbitration approach.

The arbitrage is a kind of trading, in which all analysis is reduced to determining exchange rate differences of the same financial asset, but on different stock exchanges. It is not based on the analysis of the historical movement. This approach allows you to conduct risk-free trading and accumulate a large percentage of return at the same time.

Considering the classical arbitrage, it is crucial to understand that there are several types of it, which can be applied to the currency market.

  1. Fix api 2-leg Arbitrage;
  2. Fix api Latency Arbitrage;
  3. Triangle Arbitrage.

So, this is the first type that can be attributed to the classical forms. This principle was used in the stock market when the value of the same financial asset was significantly different on different exchanges (for example, in London and Japan). Considering the foreign exchange market, fix api arbitrage has become a reality. It happened because the multiple brokerage companies which act as these different platforms had opened.

Let’s look at the example in order to understand the algorithm of classical arbitrage in more detail.

The value of the currency pair USD/CHF in one broker is 1.0215, while on the other platform it is 1.0235. Thus, the discrepancy between the same currency pair is 20 points. In this situation fix api trader can make an arbitrage trading operation, which will consist in buying USD/CHF from the first broker and selling on the side of the second one. When this discrepancy would decrease to 10 points, the manager will close both positions. Let’s imagine that the value of the currency pair will be 1.0278 and 1.0288, respectively. Then, according to the first operation the profit will be fixed at a rate of 63 points, and according to the second one the loss would be fixated at a rate of -53 points. The total financial result for the two operations will be +10 points, which the trader had received without any risks.

The algorithm of the arbitrage methodology is quite simple. However, it is complicated, while committing trading operations manually. It is because the forex market is the most volatile one and the ordinary person finds it very hard to follow its dynamic, especially if we are talking about the analysis of two different accounts and financial assets at brokerage firms.

That is why particularly this type is amenable to algorithmization and has become one of the first systems that were implemented in HFT trading. Trading robots written on the arbitration strategy are in a great demand among various participants of the exchange trade (

So, the algorithmic approach in arbitrage trading allows:

  1. Conducting a continuous analysis of financial assets on various stock exchanges (fix api forex brokerage companies);
  2. Increasing the profitability of investment capital while having minimum or zero risk parameters;
  3. Using fix api to get the most up-to-date and timely data. It allows you to increase the profit potential and thus deprives you of the need to use the server and open accounts in “fast” broker companies;
  4. Using the faster and the slower broker for the manual trading or trade via fix api, which is suitable for arbitrage trading;
  5. This algorithm is not based on the graphical analysis (, and therefore can easily be combined with the manager’s manual strategy in the currency market, regardless of its type and internal algorithm of actions.

How to Make Money on Forex Trading Signals?

In the modern IT world, the exchange speculator has the opportunity to realize his profit potential not only in the market, but also earn additional money on his own trade. However paradoxical it may be, if a fix api trader earns from the market, he can earn more from his positive result. How? We will talk about this today.

An excellent element of additional income for a trader is implementation of several areas:

  1. Providing trading recommendations.
  2. Trust management of the trading account.

Providing trading recommendations

The given kind consists in the fact that if you trade under certain conditions of your trading strategy which displays favorable moments for entering in the market, you can share these signals in the fix api forex market ( ). Of course, provision of trading signals will not occur on a free basis. You can take a monthly subscription for your recommendations, and if they are profitable, then you will be able to keep your customer base from month to month and increase it. Thus, a passive income will be generated directly for your trading. Personally, to do this I recommend using automatic platforms, which will display the result of your fix api MT4 trading account. This will immediately sign additional customers to their trade.

Trust management of the trading account

In addition to providing trading signals, you can directly implement them yourself on the customer’s account. Thus, you can quickly influence the client’s trading result, as well as independently control the risks. To do this, you must have a trust management agreement, according to which you will work. According to this principle, your income will be forced exclusively in case of a positive result on the client account, from which you will take a certain percentage of the profit (usually 2% of the management fee and 20% of the result). For example, if you took $ 100,000 under management and earned $5000 on this account, then your yield would be $ 1,000 from the yield and $200 for the fact of trust management.

If we consider these two options, as for me, the most profitable is provision of signals on special platforms for fix api trading. After all, this has a number of advantages:

  1. It allows you to control the risks for your trading account and work with comfortable amounts;
  2. It gives an opportunity to earn a guaranteed profit regardless of the outcome (but remember that without a result, there will be no subscriptions and the next extension of the signals subscription);
  3. It allows you to increase the loyalty of current customers and recognition among other traders if you publish the results on external sources;
  4. You can connect an automatic trading strategy ( ), which itself will accumulate both the profitability from the market and the yield for the subscription.

I recommend using several excellent sources to place your trading signals, which will show your profitability and trading result:

  1. 1sforexsignals – is a new platform among the trading signals, but it has the lowest input threshold for signals starting from $1.
  2. Mql is perhaps the largest community of fix api traders who place their signals on the platform. However, the minimum subscription cost is $30, which excludes the possibility of providing signals to the customers with a small deposit amount.
  3. Myfxbook is a resource that is multifunctional monitoring of trading operations and allows you to publish trading signals based on the statistics.

Summarizing a bit, one can draw a simple conclusion that each trader is unrestricted by the profitability framework of his trading strategy. However, to generate additional profitability, it is necessary to work hard and improve our trading system.

What you should know before using a robot in the forex market

Today, the financial market is comfortable for both private individuals and investment companies. The age of the Internet, as well as the information technology, have done their job, and now everyone can trade not only with a computer, but with a phone. With the changing functionality of brokerage companies and market conditions, the managers have also been adapted to them, which allowed creation of automatic approaches.

Every year, algorithmic trading attracts more and more speculative fix api traders. In view of this, new algorithms, trading advisors and whole software for comfortable trading are emerging. This simplicity induces increasing interest. But it should be understood that the automatic approach is a complex process and you, as a trader, should control your risks even before you turn on the automatic program on your account. The thing is that about 90% of programs on the market are not profitable at all. Those that make a huge profit are hidden under seven locks.

Therefore, if you are thinking about using a robot for your trading, you definitely need to know some key points. Today’s review will be devoted to this topic. I will analyze those pitfalls that you should know about before buying a robot and what you should pay attention to.

Key factors for analysis of algorithmic strategy effectiveness:

  1. Indicators of profitability on a real trading account: if a developer or fix api trader has made a program for the sake of the program, then you will agree that such software will hardly work qualitatively. Availability of testing not only on history, but also on investment capital increases at times the openness of data and they can already be analyzed. If it does not work on a real trading account, it means that the author does not trust his capital to the program. So why you should do that?
  2. Maximum set risk percentage: a lower threshold must automatically in each trading robot, at which point the robot stops trading. If this parameter is not specified, then consider that you are making a venture investment, which high probability is to not give the desired result.
  3. Working drawdown: this parameter is similar to the risk I wrote about above ( ). The difference is that the drawdown should take into account the profit and if there is a decline, profits for a certain percentage, then the robot should stop the process of trading in the fix api forex market. Thus, the risk is set for the initial capital, and the drawdown for the current (capital + profit).
  4. The ability to test the software: if there is a beta version of the product, which you can test on the history, then be sure to ask about it. So you will see whether the logic of opening positions coincides with the description of the robot and how much it adheres to all parameters.
  5. Results on external sources (analysis of indicators): there are services for tracing the robot’s trade and if it is registered on one of these, it will allow you to already analyze trading indicators such as mathematical expectation, profit factor, recovery factor and so on. For example, on this resource you can both analyze the robot trading, and immediately purchase it – .
  6. Support for the developed robot: well, if you have already decided to purchase a robot, then the availability of support after purchase will be the last decisive link in favor of a particular trading robot.

If you consider all these key factors when choosing automatic software for fix api trading, it will allow you to choose exactly the quality software. Moreover, it will avoid the most basic mistakes and hidden moments that may occur when you work on a real account and risk your investment capital.

The most popular trading signals regardless of the strategy

A lot of players in the financial market perform daily trading operations. There can be many grounds for committing these transactions: a prone fundamental background, triggering of technical patterns or even entry into a long-term fix api trading. Each of them relies on the existence of certain patterns and recommendations directly to its strategy. As you know, a stable positive result in the financial market is possible only if there is a trading strategy.

A trading strategy is a set of rules and principles that guide the manager when making an investment decision. Each strategy has an identical set of parameters and blocks, but each of them has its own individual set of trading signals, which are combined into a single chain of sequential actions. Thus, each trading strategy has the same blocks: definition of trading instruments and conditions; analysis of entry points on the market; analysis of exit points from the market; parameters of money management; support for open positions; analysis of committed trading operations.

Today, we will speak directly about the tools from the first block, namely the trading signals. Moreover, let’s consider the most popular and working ones of them.

Trading signal ( ) is the basis of each trading system. This is exactly what makes your system unique and different from the strategy of another player in the fix api forex market. The signal displays the best moment for the trader to enter and exit from the position, which allows more flexible management of his capital. Since each signal takes into account the price and financial asset, they can be used without problems, regardless of the trading methodology or strategy.

There are many different trading signals in the financial market and in particular on fix api forex. Even fundamental data are a signal to action for the fix api trader. But I will consider exactly those technical signals and combinations that have confirmed their performance for a long period of time.

The most popular trading signals, regardless of the trading strategy:


  1. Reversal combinations. These signals can be attributed immediately to the whole group of technical elements in the form of repeated patterns. I have repeatedly reviewed in my materials patterns such as pin bar ( ), double bottom/top or head-shoulders. You can find more details about them in my blog. However, I want to note that their ability to work under given conditions is due to the fact that all other market players see these patterns, therefore they also trade on them and build their forecasts.
  2. Support and resistance levels. I think these methods of classical technical analysis do not need to be represented, because a lot of different trading systems are created on their basis. The essence of signals is that when the quotes of the financial asset reach a certain level of support or resistance, the trader should be vigilant and prepare for a market reversal or breakdown followed by a trend continuation.
  3. Divergence. It is also a classic analysis tool that is implemented in a combination of prices and indicators from the group of oscillators. When the quotes of the financial asset show growth, and the indicator values (MACD or AO) decreases, the fix api trader receives a signal of a possible price correction down. Accordingly, signals for sale can be considered. Signals for asset purchases arise if the indicator values increase and the quotes decrease.
  4.  As you can see, the versatility of these trading signals makes it possible to apply them even in your trading strategy. If you implement a signal that does not present in your fix api trading, I’m more than confident that it will help you increase your financial performance.

Trend Reversal Patterns

We all know the saying “the trend is your friend”. And we should adhere to this saying, because trading against the trend will cause permanent losses, thus, it will allow you to save capital. However, how do you know when the potential for directional movement is already breaking and you should optimize your trading positions in the fix api forex market? That’s why there are trend reversal patterns.

The patterns of the trend reversal make it possible to find out the end of the movement with a great accuracy with the help of turning technical figures. Reversal patterns can be divided into two subcategories: combinations of several candles (2-4 price bars); combination with a large number of candles (more than 20).

The first kind that is a combination of several candles can be divided into two most popular types:

  • Pin bar: this reversal pattern is formed with a combination of three candles, but the trading signal of the fix api trader is given by the last one, which should show a special form. According to this pattern, a combination of three candles should be on the top or bottom of the market. The first two candles should show the same direction and have a candle body more than normal. The third candle should also be traded according to the trend, but be closed back from it and thereby form a large directed shadow, and the body should be less than 4 times shorter than the shadow. According to this combination it is necessary to open deals in the direction of the pin bar (the last candle), which will allow you to trade with a short stop and enter at the beginning of a new trend.
  • Doji: are patterns that indicate equality between the purchases and sales. If the doji is also formed on the bottom or the top of the fix api forex market, you can get confirmation by back candle. If it is directed against the trend, you should expect further correction or reversal, because there was a turning point in the doji, in which the purchases equaled the sellers (and vice versa) and continue to build up their positions.

The second kind that is a combination of a large number of candles can be divided into two most popular types:

  • Head-shoulders: this combination of candles appears with the help of a large number of price bars and its formation may take some time. The essence of this combination consists in 5 consecutive extremes, which form three peaks or valleys. In this case, the central peak must be the largest among the two standing side by side. If such a combination works, then the trader receives a trading signal ( ) and must place a sell order under the base of this figure for the purpose of a subsequent reversal with the same length as the top/bottom of the head. Another element should be chosen by the level of loss fixing, because according to the classical interpretation, SL should be put behind the last shoulder, and this can be a long distance in points.
  • Double bottom/top: formed behind a similar model, like the head of the shoulders, but it has only two peaks/hollows that are the same in length. Similarly, this combination should be formed on the local maxima or minima of the graph. Trade in accordance with this reversal pattern implies the opening of positions on the breakdown of the middle formation with the aim of the figure length itself. Often, this formation already appears when the fix api trader already has signals for buying or selling, which can act as an additional filter in predicting the future value of the financial asset.

The price patterns that I have described above will allow you to both optimize the current transactions and enter at the very beginning of the new trend formation. Use these candle combinations with your trading system, because their versatility can be used in combination with other elements of both technical and fundamental analysis.