The Equilibrium, a key to success!

Yes, if the CDF's only go to up, because i'm looking the charts and not have the tendency bearish. Only pullback and up move. This is normal?

Hello palpite,

no that is not normal, I also trade CFD, so far I could not find such a thing.
However, this is always a question in what time unit and in which currency pair you are.
Maybe you can post a few examples, then I can write you something.

Best regards

Importend Equilibrium

Hello dear traders,

Now that the price has fallen from 1.255 to 1.151, there has been a stronger upward push at the end of May. This upward push has now passed into equilibrium in the last 3 days.



This means that buyers and sellers agree. After equilibrium, the market decides the new direction. The trend looks bullish, but this situation can change quickly.



An interesting feature has occurred after the stronger increase from 1.15 to 1.167. It formed a strong equilibrium in the M8 chart. This Equilibrium has been a recurrent destination for the last 3 days. Today's increase of over 80 pip have already come back, right up to our equilibrium. So you can see that you can only do interesting trades with a single equilibrium. The course comes again and again in this zone of Equilibrium, shows the strength of this zone. In this zone, buyers and sellers agree, because there supply and demand are congruent. Now investors have to make a decision. But we should be careful. Often there is a Fake breakout in the opposite direction. I also believe that the big players push the price down again to buy cheap. Then a strong uptrend could follow. Look at the equilibrium emerging in the market, this market uncertainty gives us the security to do the right thing.

Good luck tomorrow

Best regard

Ok, thank you.



Good analysis.

Gap in EURUSD

Hello dear traders,

on May 25, 2018 at 23:00 CET, trading started the weekend after a downtrend. 48 hours later on May 27, 2018, trading at 23:00 CET was 37 pip higher.
A gap of 37 pip had formed. If you can trade a gap profitably, this is a question that daytraders are especially concerned with trading on the stock market.

What is a gap?

GAP comes from English. In short, it is a "gap" and is used in the financial sector for a price gap. This is visible in the chart image and can arise for several reasons. In the so-called order book, a large number of market participants are frequently available on both sides (supply and demand). Thus, only one GAP can arise if there has been a massive movement and no further market participants were in the order book at points further from the price.

There are several gaps: If the GAP moves in the trend direction and the market moves quickly away from the GAP, it is, for example, a break-away GAP. Likewise, a Measuring GAP can even confirm the trend. In contrast, an Iceland GAP or an Exhausting GAP is a hallmark of directional change. However, we do not want to deal with that today, just as little as a gap can be closed or not. By the way, in 90% of the cases a gap is closed, the question is only when? These are pure speculations for me, which I do not want to deal with today. Nevertheless, these gaps can provide traders with interesting information about a future price history. Let's take a closer look at this gap from May 27, 2018.



Here you can see how the gap has expired. In principle, you would have to draw a bullish green candle without shadow into the price gap. This candle was 37 pip. I have now drawn the range of this candle into the future and let's take a closer look. By the time the gap was created, the price of 1.255 total 910 pips has fallen. This gap was a small alarm signal for me, the bulls are slowly warming up. Of course, the course went down even more, but then formed the bulls and pushed the price massively upwards. It is interesting how the course has reacted within this range. After the course has penetrated into the range, you can see very well that this range has occurred as a kind of resistance. Of course you can not derive any generalization from it, but you can make an interesting discovery of it.

Take a look at strong price moves up or down. You will notice that this price level from which the price has gone up or down massively is a kind of resistance zone.
This gives us some information to anticipate possible price movements ahead. Especially if you pay attention to the Equilibrium and their strategy is oriented to supply and demand, these price levels will provide you with important information.

This information increases the likelihood of making the right decisions and 51% is enough to earn more than to lose.
I hope you got some ideas, now it's time to take a closer look at the market.

I wish you much success.
Best regards

Hi Bionics, look the US-500 since 2010, only have the up trend. I asked about it, and if it can go to down someday.

Chart Monthly

S&P 500 versus EURUSD

Hello palpite, hello traders,

I agree, now I understand what you mean. I thought about what currency pair you could have meant.
The S & P 500 is made up of 10 industries. The technology sector (weighting 19.4%), the financial sector (16.1%) and the health care sector (13.7%) lead the industry list. Together, they have a market capitalization of just under 50 percent of the US index. If these three sectors move up, corrections or bear markets have no chance. Since 1927, corporate profits have risen on average by 6%. The profits of US companies are currently rising sharply. I believe that in the first quarter of 2018, the companies represented in the S & P 500 Index achieved a plus of more than 20%. So it's clear that the price is rising rather than falling. Basically, the question is how long these corporate profits can rise so much.

The S & P 500 is heavily tied to stock prices and there have been fewer swings in the past 50 years than in the EURUSD currency pair. The Dax is also equity-oriented. The Dax is said to follow the S & P 500 and when the S & P coughs 500, the Dax has severe pneumonia. The S & P 500 is the more modern index compared to the Dow Jones Industrial Average and represents around 75 percent of the US stock market capitalization. The composition of indices should reflect the market in such a way that the development of the considered market is reflected in a representative way.



Although you can not compare the S & P 500 with the EURUSD, I have compared the price history of the last 50 years. As a Scalper I need a higher range of variation to be successful. In addition, I work with the Equilibrium which means I pay attention to supply and demand. From this I derive my zones and am thus able to accurately recognize and act on specific trend changes. The S & P 500 is in a range it has never been before. So I lack important clues to capture supply and demand. That's why the EURUSD is more interesting to me than the S & P500 / Dax.

Of course there were zones in the EURUSD that the price has never reached. However, at the moment we have enough resistance and support zones that we can identify by supply and demand. Maybe this way would be easier for you, but you have to find that out for yourself.

Currency pairs are influenced by external factors that affect the value of the currency. The EUR / USD is subject to fluctuations caused by different key interest rates, which are determined by the European Central Bank (ECB) and the Federal Reserve (Fed). Any ECB market impact to strengthen the euro would most likely lead to a rise in the value of the EUR / USD. If, on the other hand, the Fed tried to strengthen the dollar by influencing the market, the value of the EUR / USD would probably fall.

The euro is one of the seven major currencies traded with the US dollar. EUR / USD is the most traded pair in the forex market. It is commonly regarded as the most important and most liquid currency pair, as the euro itself is considered the world's second most important reserve currency (after the US dollar) and the second most traded on the forex market. These factors make it easier for me to make decisions. That's why EURUSD is my first choice.

If this information helps you a little further I would be very happy about it.
I keep my fingers crossed and wish you much success in the trade.

Best regards

Ok, thank you, this solve my doubt. The industries not want loss money, of course.

Being well informed does not mean knowing a little about everything,
but all of a few things, assuming they are the ones that matter.



Hello palpite, hello traders,

I am happy if this block helps you. Each Brocker has countless currency pairs, indizes, metals, commodities, options, futures and stocks.
Each of these investment opportunities contains a variety of factors that are important to trading success.

For the EURUSD other factors are decisive than for the EURCHF or for gold. Behind it is always a lot of information news and investor behavior. Keeping an eye on everything and orienting yourself is impossible.

That's why Equilibrium is the only way I can trade different currency pairs profitably.If you have a little experience, you will be able to grasp the approximate range in which a currency will move during the day, so you can choose the currency pair that has the most potential. When you draw a resistance zone in a currency pair, it usually takes a few days for the price to return to that resistance zone. It depends of course on what time unit I move me.

If there are no good entrances in a currency pair, it makes sense to look for possible entrances in another currency pair.
With the Equilibrium I only need my pure chart image without indicators. So I can quickly and efficiently capture if and when a trade in this currency pair is worthwhile.

In this blog is described in great detail how to trade the Equilibrium.

At the weekend I will write about it once again a detailed article on how to start just with the Equilibrium.

I wish all traders every success today

Best regards

Easy Equilibrium


Hello dear traders,

Before we get to the very core of the matter, we have to briefly deal again with the market economy. As you may have already seen in the video on page 1 of my blog, the market is always the same in terms of supply and demand.

The EURUSD is primarily determined by the big players, let's take a closer look at that in the first step. In 2018, approximately $ 6,000,000,000,000 a day was converted into the foreign exchange market. The EURUSD has a share of about 25%. Thus, daily $ 1,500,000,000,000 is traded in EURUSD.

Now I have determined how high the average Pip per day is in the EURUSD. I have calculated the average of the last 10,000 candles.
On average, 90 pip are reached per day, 16 pip per hour and 2 pip per minute. It does not matter if the price is up or down. Since the price fluctuates every second and a minute candle does not generally go up or down, it can be assumed that at least 5,000 pips of fluctuation in the EURUSD will be achieved per day. Dividing the trading volume of $ 1,500,000,000,000 by the 5,000 pip volatility, a frightening insight comes to the fore.

To move the price around 1 pip $ 300,000,000 is needed. However, one can not analyze this in such a concrete way, as it always depends on how many participants are buying or selling in the oderbook. Now that you know that there are sometimes breakouts of 30 pip or more, you know roughly what money is being moved at that moment. So you can be sure, even if you shoot $ 100,000 in the market, no one will notice.

Take two market participants. The price of EURUSD is $ 1.20. Big Player A believes that the price will fall and Big Player B believes the price will rise.
Big Player A invests $ 900 million on a falling course and Big Player B $ 300 million on a rising course. What will happen? The course will fall. If both invest an equal amount at the same time, equilibrium is created and the price is still $ 1.20. But, strictly speaking, that's not true, as both market participants have different fees and thus one investor invests more than the other.

Take the $ 1.20 equilibrium zone. This means that market participants are in agreement and there are just as many buyers as sellers. Now some buyers are getting off and more sellers are entering the market. We now have a supply market and the price drops to $ 1.19. At $ 1.19, many sellers get off and some buyers come into the market. The course stops and in this zone an equilibrium is created again. More buyers enter the market, creating a demand market that will push the price higher again. The price rises until an equilibrium arises again, where buyers and sellers agree. Then it goes up or the course falls.
Since indicators have a trailing character, one should give the pure price chart the greatest attention. A price does not rise because the faster MA cuts the slower MA, but because more market participants believe in rising prices and therefore buy more traders than sell. But what happens if the price increase is just a jiffy break or a pullback? You can not see that either with indicators or the price chart. Even the order book, volume profile or footprints do not help there.

The only chance here is the price levels that signal me support or resistance. Decisive for this are the supply zones and demand zones which are analyzed with the help of the Equilibrium. And that has nothing to do with indicators, order books, volume profiles or footprints.
Let's start with the EURUSD in the hourly chart on May 25, 2018.



Once I have highlighted all the candles from 30 Pip within an hour in color. The 30 pip refer to the open and close, high and low is less crucial. These so-called color breakouts have the habit of always breaking a strong resistance zone. This means that within this breakout zone there is a resistance line that may once again play a crucial role in the future. In principle, the breakout I mentioned is a big jump or a dip in price, because after all, this candle has formed within an hour and not within minutes. The course is clear and in relation to the other candles, the color-coded candles stand out clearly from the gray candles.

In the upper and lower chart image you will see two yellow resistance lines from the past. I have drawn these lines on the same principle, which I will now explain below. Now we go on the search of the possible resistance zone, which is broken with my color-marked candle down or above.



Let's take a look at the first color-coded candle. We can clearly see by the yellow arrow next to the green candle what happens. The result is the gray candle, which lies in front of the green candle a kind of equilibrium between the open and the high. The course goes up and is rejected again. Actually, you would have to red color this wick, because the close of this candle, the course has gone from high to open and this state is bearish. On February 14, 2018 wrote about a blog.

(Post 298)

https://www.forexfactory.com/showthr...0782522http://

To draw in my resistance line, I need a "red wick" that appears in front of a strong green candle. At the Open and High I draw in my two lines. If you now go into the past, you see clearly that these lines already have a kind of resistance. With the first blue arrow on the far left, you even recognize 6 equilibrium within this zone. Recognizing an equilibrium in the hourly chart is a small challenge, since the formation of candles is arbitrary due to the time unit. I think you can still see how strong this zone is.



Candle 2 is a bearish candle and we even find two strong resistance zones here. Here we basically need "green wicks" which are always below a candle. At the low and the open I draw in again my two resistance lines. That's where the Equilibrium came to be, and then there was a demand market. Again, you can see clearly that within these two lines the course was rejected and it is a strong zone.




Candle 3 would actually need to push the bottom resistance a bit higher, but the previous red candle was so strong that I did not use it. One of the reasons was the strong equilibrium at the red arrow. So I have now drawn two more lines at the candle No. 4. Now I still draw my zones according to this principle with the candles No. 5 and No. 6 and then we look at the result once.




I believe that you agree, the result is impressive. With just 6 candles you can find very good resistance zones and prepare some nice trades. Let's go to the candle No.7.




This is a strong candle and it is noticeable that the already indicated resistance levels of candle 5 and 6 are confirmed once again. However, even with the two yellow arrows, you can see that we have another strong zone in the future. Actually I should have pulled my blue resistance zone to the middle of the candle No. 7, but here there was a resistance at candle 6 I deducted. (right yellow arrow). This also predicted the last resistance (right blue arrow).

Let's start fine-tuning in the 1 H chart and go back to candle 1.



Here you can see at A, B and C I drew three more blue lines. The principle described above is exactly the same. Only at A is the bearish candle less than 30 pip. Again, the resistance zones work properly. This kind of resistance zone analysis works in all time units, but the smaller the units of time, the more attention you should pay to the overall trend. A good alternative would be to draw the coarse and medium resistance zones in the 1 H chart and then switch to the M 15.



Here we see the concrete result in the M 15 chart. The red zones were plotted on the same principle, but in the M15 chart. This gives me a better attitude and thus a better start. As a Scalper you can achieve very good results in the M15 and the M1.

How do I choose the optimal entry?

You have two options. You put a limit order in the middle of its resistance zone and the stop just above or below the zone. The second option is to wait and see how the price reacts and to go up after the first pullback, so that you lose important points.

With this Equilibrium system, you can quickly see if the trend has changed or if it's just a pullback. If a price change has occurred, simply draw two lines on the trend change and look in the past. With the system I'm explaining to you today, it will certainly make it easier to see what's going on.
Explaining an expired chart is always easier than predicting the future. Try it out for yourself now. Download my zip file at the end of my article. In it you will find the Average Candle and Momentum Candle Indicator. Load the indicators into your MetaTrader 4. Open a chart with currency pairs in the time unit of your choice. First, load the Average Candle indicator into your chart image and enter the following values.



Average candle indicator

These are the average pip in this case from high to low. In the timeframe, enter 0, then the average pip will be selected in each time unit. I like to take the last 1,500 candles, but you can enter any value here. After that, you can still choose the color of the size and location of the ad. In our case, the average candle size (high to low) of the last 1500 candles in the 1 hour chart was 15.44 pip.

Momentum candles

Go into the setting of your Metatrader 4 and set the color of her candles to dim gray. Now all candles should look like my right picture. Now go to the Momentum Candle Indicator and enter twice the value of the Average Candle Indicator. (in our example 30) Then set the colors for the bulls and the bears.
Now on your chart picture, the candles are highlighted in color, which are at least 30 pip and the chart image should look like the first picture I uploaded in this post.

Remember to change the setting of the Momentum Candles when switching to a different time unit. You now have the pure chart image with gray candles and the strongest candles are highlighted in color. Now proceed according to my described system. Just start in the past. Just record two resistance lines and see how the course has behaved against these resistance lines. It's hard to start, but I promise you interesting discoveries.

If you have any questions, I am at your disposal and if you make interesting discoveries, I would be very happy to hear from you.
I wish you much fun and much success.

I appreciate your feedback.

Best regards

Attached File(s)

Indicators.zip   12 KB | 981 downloads

Hello tipsonpips,

First of all, welcome to our blog and thank you for your kind contribution.

You're only a few months with FF, but you seem to have gained a lot of experience. At the beginning of a trader's career, you first look around the market and listen to 1,000 different opinions. One tries to implement selected strategies, changes them and finally starts all over again. It's a journey that never end, because every opinion is different and there are millions of strategies. From the multitude of information one begins to implement his own strategy and to optimize it. At some point you have found your way to pursue this path. I thought about it for a long time before I published my first post here in January 2018. First, because there is a counter statement to each statement and second because I was not sure if the way I go for many years for other traders is the right one. Another challenge was to explain my trading style exactly. For many years I already act intuitively without thinking about it. To put into words this intuition is difficult.

There are many successful traders at FF who achieve extraordinary results with indicators, volumes, footprints or the Oderbook. I think that everyone has to find out his style and someday he has to continue on this path, provided that he earns more money than loses. I have big respect for every trader, no matter how and why he acts.

If I can help this dealer with information, I am glad. If the merchant does not help my information it is also an advantage for the trader. He now knows that my way is not suitable for him and can now continue searching in peace. If you look for a particular address below 1000 addresses, and you do not find them immediately, you should not be annoyed. The more addresses you analyze, the closer you get to your destination.
I wish you that you come closer to your goal and I would be happy if I can contribute to it.

best regards

Hi Bionics,
sorry to step in to your thread but I'd like to correct what you've said about equilibrium and about the way how and why the fx spot market is moving.
Unfortunately your assumption about what is causing market equilibrium is not correct. Sellers and buyers will NEVER meet as market participants. The simple evidence for that is spread. How the hell they could make any trade together and make equilibrium when price have a difference in form of spread between Bid and Ask? And so due to spread existence their orders won't never be "paired" (unless the traders in your example do not use some bucket shop brokerage ) and so simple orders difference can not really have influence on the market i.e. more buyers does not necessarily means the price will go higher and vice versa.
What potentially does equilibrium are actually limit orders and market makers providing the liquidity through them. Liquidity provided to the market in form of limit orders is what can eventually make some sort of market equilibrium, not balance of orders or balance of volume of market orders. Market orders move the market but only in the way where is the least liquidity. It's different concept than in stock market but this is really basic concept of FX spot market one should comprehend. It's crucial to know this FX spot market mechanics how and why is price really moving. And it's actually quite dangerous to teach the way how to spot the reversal points without that knowledge and without access to full order book, because order book is the only source where one could find real potential reversal points. Full order book is something one can never get neither from the retail broker nor from prime brokerage. Without it it's just guessing, that's why I quoted it as to be dangerous.
Simple example: even just 1 selling order of 1 lot can easily move the price when there is no buying liquidity even in the situation when, at the very same time, there is simultaneously put 100 lots of buy orders when there is enough liquidity available to fill the buy orders. So in this example we have 1 lot selling pressure and 100 lots buying pressure but price could easily go down despite the fact that there are much more buyers than sellers.

This is one hell of a post ! Well written and a must read. Kudos!

Sorry to say Bionics. You are simply wrong about the application of core principles of supply and demand. The FX market macro and micro structure simply does not support such theories. All such strategies are simply cooked up to tell a story to spot FX retail traders and attract a following on forums. They never work and none of such threads come with any hard evidence of long term sustainable performance. I am desperately hoping you can be the one to prove me wrong.

Dear mcquak,

First of all thank you for your contribution and your point of view. I am very pleased that this blog has caused you to write your 13th post, which you have published here at FF over the last 5 years. I am very honored. Criticism is a help to get better, so first of all many thanks for your effort.

Basically, you can discuss or refute any statement, it is always a question of what someone says and what the other interpreted from it. If you write that it is dangerous to make certain statements, you are assuming that our mature traders, because of my statements such as lemmings from the mountain into the abyss to overthrow. Thus they question the level of the traders present here considerably. I find that somewhat questionable.

If it were dangerous to make a certain statements then you would have to criticize most of the posts in FF, since every trader has his own opinion. The factors that arise within a trade in the market are so complex that one unfortunately can not easily explain them. If that were possible, one could also develop EA that could calculate these factors and implement them profitably. This EA does not exist and will never exist. Since trading is a pure chance product, one can only try to influence the probability in his favor. That's exactly why this blog was opened. Every trader has his own view on how the stock market works and I accept and appreciate their opinion, but I kindly ask you to accept my point of view as well. By no means do I want to deny your knowledge.

There are very good theorists in the stock market that can not trade at all and just as many very good traders are the less good theoreticians.

Criticizing is always easy, doing better is the challenge.

Since I think that they certainly have many good approaches, you should write after 5 years at FF maybe even a separate block so that other successful traders can benefit. Because that's exactly what FF got into life.


Best regards

[quote=VEEFX;11152816]{quote} This is one hell of a post ! Well written and a must read. Kudos!

Hello VEEFX

You were the first to praise my first post on supply and demand, even though you have a different opinion. I appreciate your statements very much and I like to hear your opinion on certain topics. That does not mean that I have to share that opinion 100%. For many 1,000 years, it was also believed that the earth is a disk. Despite all the theories in the stock market, the majority of traders still lose money. If science explains that something does not work, that does not mean it will work someday.

Let us take as an example the fundamental analyst davit, who also has his attitude and opinion on the market. You two did not always agree, but who is right now? I think that is completely irrelevant if someone is right, cleverer or can actually explain the market better. Maybe I can not express myself as chosen due to the language differences, as in my native language which makes communication much more difficult. I also did not launch this blog to prove my theories and opinions, but to show other traders my way of trading. My first post I published in January 2018, a very esteemed member Hanover who unfortunately is no longer active, had inspired me to do so.

I also think it's not reprehensible to give the traders a system with which they can draw lines to see how the market responds. I never said that my system is the best in the world, but I show how I look at the market. You do that too and I accept your opinion and do not explain that you are wrong. There is no right and wrong in the market.

Maybe I'm just creativ and have no idea. I think that would have someone to tell me earlier and not only in the contribution No. 600.

Best regards

Bionics, it seems you took my comment too much personally. Perhaps due to my poor english.

To all your personal insults: If I would evaluate anyone per his/her existence here on FF and per number of comments he/she provided than I would be quite sceptical to strategy being taught by someone whos account was created half a year ago .

Back to the topic. What I wanted to highlight was that your assumption about fx spot dynamics, i.e. what ( and how ) drives currency spot market, is wrong, it simply does not work the same way as stock market as you are expecting. And because you've built a "strategy" around these wrong assumptions I wanted to express that it's simply dangerous.You can draw how many lines you want but liquidity will always rule the market.

I promise, this is my last contribution to your thread.

[quote=mcquak;11154059]Bionics,

Dear mcquak,

the problem seems indeed to be the translation. I did not want to insult you in my post and if that comes across as a result of the translation I am very sorry.
I just expressed my opinion. Likewise, I wrote that, in my opinion, you have a high level of expertise that they should make available to others.
I understand your skepticism due to the fact that this block only existed for half a year. However, I live for many years of trading and unfortunately only in January 2018 FF wrote the first post.

I also understand that you as a professional irritated because I act contrary to the known opinion. Maybe this aspect is the recipe for success.
That's exactly the point in the stock market, two traders are completely different, but both are successful.
Nevertheless, I thank you again for your statement and of course I will think about it.

Thank you and best regards to Prague
PS: We do not live far apart

Easy Equilibrium the next part


Dear Traders,

The instructions in the post 590 was a first approximation to the Equilibrium and a rough analysis to show you which power can have certain price levels.
A sharp rise or fall in price means, in a sense, a high expenditure of energy in one direction or the other.

This sharp rise or fall is said to break certain resistance zones with a high force to reach the target. We need to find exactly these resistance zones, as these zones can play an important role again in the future. In the post 590 we first determined the average pip size with the average candle indicator in a certain time unit and then let us show the largest candles with the momentum candle indicator in color. From this, zones were identified which, in a sense, are called coarse zones in order to get to know the Equilibrium system.

If we have an average pip size of 15 at EURUSD in H1, but only the color of the candles that reach a pip size of at least 30 we will not find all important resistance zones. That is, to find the most important resistance zones within a time unit, we need to reduce the pip size in the Momentum Candle indicator to a certain size. Before we realize that, another aspect is very important. The decisive factor for this calculation is the price history that exists in your meta-trader. So if you want to find the average of the last 1,500 candles in H 1, your Metatrader must provide the price data for the last 2 months in H1, otherwise the calculation is wrong.

You can try it yourself once a month. Most brokers provide price data in EURUSD MN from 1996/1999. My Metatrader provides me with the price data of the EURUSD of January 01, 1971, which is almost 560 months. The average pip size per month is 461 pip. If I now want to display the last 1,500 months, the indicator gives me a value of 173 Pip. This is clear, as the indicator now divides the same number of pips by a higher time value. Therefore pay attention to how many price data you can calculate maximum. In the monthly chart, it is sufficient to display the last 100 months, since the values should still be reasonably current.

My candles in the Metatrader are dim gray in color and with the Momentum indicator I indicate the strongest momentum. Depending on the time of day, the momentum indicator must be adjusted in a time unit.


Here are my settings with which I am well through the day. From time to time the settings have to be adjusted up or down.




Here you can see a chart in the M15. The candles are gray and the momentum indicator is set to 7. At the weekend, I prepare the next week in all 9 time units. I look at which zones in the coming week could be exciting and interesting. Of course, I can not predict if certain zones will be reached, but analyzing each zone by supply and demand will help a trader to make fewer mistakes.

Try it out for yourself, then you will quickly realize if you can handle it.

I wish you much success and a good trading week

Best regards

ESMA Alternative Broker in Australia



Dear traders in Europe,

In a few weeks the ESMA regulations for Germany and certainly other countries in Europe are expected to be implemented. The condition for this is that these provisions are formulated specifically and are also issued. When the regulation comes, it is not yet clear, many expect it in July or August 2018.
I have already written 3 articles about this topic and would like to comment less on it today. If you want to look at these articles again, here are the links.

Post 218 Consumer protection in Europe is becoming ever more dramatic
https://www.forexfactory.com/showthr...3#post10738903

Post 476 ESMA "What does the moon care if a dog barks at him"
https://www.forexfactory.com/showthr...2#post10924582

Post 489 ESMA: An immoral offer!
https://www.forexfactory.com/showthr...4#post10931214


Basically, I would like to make an important note. My recommendation to switch to an Australian broker is intended exclusively for the long-time professionals. A beginner I recommend urgently to stay with a German broker, because there is no additional funding and the account can not run into the minus. With a lever of 1:30 you can start well even as a beginner, later you can still change.

Therefore I would like to address this article to the long-standing experienced traders for CFD.

I promised to look around the Australian market and select a good broker. All in all, I looked at 16 brokers and compared them. I would like to emphasize once again that I do not want to advertise for the broker mentioned later. Firstly, I do not have many years of experience and second, a broker can change quickly if the promised benefits are not fulfilled. In addition, I have only been aware for some months that CFD is undergoing significant changes. This circumstance has only led me to look for other brokers.

For me it was now not so crucial whether the broker offers a lever of 1: 200 or 1: 500. As Scalper, the costs are the execution time and tight stops. In addition, the regulator and an ECN broker is another important point. On April 5, I have already published a detailed article on brokerage.

Post 491 How do I find the best broker for me?
https://www.forexfactory.com/showthr...6#post10938146


Exactly according to these criteria, I proceeded to look for the optimal broker for me in Australia out. First of all, it was important to me that the broker is regulated exclusively through the ASIC and has no connection to a European regulation, otherwise the European rules will apply again. And that's exactly what we want to deal with legally. Many brokers have fallen out due to the cost situation already directly. The spreads of the 16 brokers are between 0.0 and 3.0, but some brokers require a commission. Of the 16 brokers, only one is left at the end. I would have wished that more brokers had been shortlisted, but it ultimately failed because of the costs that are significantly higher for a scalper than for a daytrader.

The brokers within a spread range of 1.0 I have looked closer to me in a demo account. A fast data flow and the execution speed was crucial here. The comparison I have done with the Metatrader 4 to have a consistent comparison.

IC Markets was my personal winner, but please note that every trader has different claims and therefore this broker might not be right for you. IC Markets is an ECN Brocker and ideally suited for my type of trade. He does not offer a guaranteed stop loss, but the stop can be pulled directly to the course. The spread is between 0.0 and 0.2, as well as a commission of $ 7 USD / Roundturn Lot on MT4 True ECN. The spread sometimes rises to 0.2 EURUSD in volatile phases, but usually it is 0.0. Stop and Limitorder can be 0 pip from the current course in the Metatrader, for me absolutely top. The accuracy of the prices is fine in volatile phases, the execution time is very fast. The stop loss must be at least 0 pip away, which is excellent. The speed data transmission of the courses is comparable with Aktivtrades. The margin was $ 235 per lot in the lower range. The customer service is excellent. The lever extends to a maximum of 500 and is adjustable. MT5, Ninja Trader and cTrader possible.

Unfortunately, I miss the dollar index, so I have to get the data from Aktivtrades. The internet platform is very simple structured. Additional features such as multi-terminal and trading tools to download. Basically for my needs a recommended broker. IC Markets is regulated by the ASCI.
The regulatory authority ASIC has a similar importance in Australia as the German BaFin or British FCA. First and foremost, the authorities deal with the registrations arising from regulations in other countries. This is an additional security feature that brokers want to give to their Australian users.

In principle, the account is structured like a futures account, there is an obligation to make additional payments if the account goes down. The costs incl. Commission are between 0.7 and 0.9, making them top in Australia and comparable to IG Markets and Aktivtrades. Since there is a commission, the account view in Metatrader once getting used to. But you can download a professional tradeterminal from IC Markets. In it you will find all information. The execution times were top and exact in all trading hours, what you would expect from an ECN broker. Stop-out rules of ESMA are eliminated. If you want to increase the execution speed again, you can act on the MT5 or Ninja Trader. cTrader is also very fast, but more expensive depending on the price.

As soon as ESMA's restriction comes, many traders can only trade the EURUSD with a leverage of 1:30 and a margin of $ 3,333 per lot. For IC Markets, the lever can be adjusted from 1: 1 to 1: 500, for 1: 500, 1 lot costs $ 235 margin. These are already serious differences, but they also significantly increase the risk.

As many things happen in Germany 5 to 10 years later than in the US, I believe that some traders will change their accounts abroad. As soon as this struck the brokers in Germany, they will put pressure on ESMA. This will then ban foreign accounts, as it is already in the US today.

This means that the clock is ticking in Europe. In a few years, regulation in Europe will bring back all traders. By then you should think about a future account.

I hope I could give you a little insight.

Good luck this week

...Very good information sir. here, from the charts, methods and about brokers, can make it better, thanks for all...