Libertex was recognized as the best trading application and cryptocurrency broke

[Libertex]

Forex Market Hours

Other than being the largest and most talked about financial market out there, Forex has a very appealing characteristic - around-the-clock operation. Being available and opening its doors to international participants at any time of the day is arguably its best characteristic. Even though Forex never sleeps and you have endless opportunities to start trading, some time frames are a better choice. Here is what you should know about the FX exchange hours.

Forex Market Hours Definition

The foreign exchange marketconsists of banks, large organizations, asset management companies, hedge funds, retail brokers and investors all over the world. The market hours offer them a timetable that indicates when they can conduct currency operations and when they can’t.

Technically, sessions are restricted to business hours like typical stock exchange hours, but considering there are multiple markets all over the world, Forex can be entered at any time. When one session ends, there is already another one in full swing. It only stops for weekend breaks and holidays. However, with moving time zones, weekends are squeezed tighter.

There’s not just one market in Forex that you should be paying attention to. This network accommodates many markets and trading hours are dictated by when trading opens in different parts of the world.

Why Forex market hours are so important



Currency pairsare open to trading whenever you wish, but no trader or investor has the capability to keep an eye on the market, or a position for hours on end. Moreover, not all market hours offer equal opportunities.

Certain currency pairs demonstrate different trends and activity as you move throughout the day. This is explained by the fact that market participants belong to varying demographic groups and engage during different parts of the day. This brings us to the conclusion that the most profitable activity is closely connected to certain busy market hours.

The most profitable activity is closely connected to certain busy market hours.

For instance, if a Forex trader is unaware of what to expect from a session, they might miss a profitable opportunity. Or the trader might not be at their computer the moment when there is a spike in volatility, allowing them to move against a set position. To minimize the risk, you can learn the most common volatility patterns and thus, choose what time fits your personal trading needs.

Major Forex trading sessions

Major sessions and the most influential financial centers go hand in hand. The session bears the title of the relevant city during its business hours. Generally, Forex is divided into sessions according to which ones are associated with peak traction.

Asian session (Tokyo)

When an optimal liquidity position is restored from the weekend break, the Asian trading session appropriately sees the results of that first. This is where the trading week effectively starts. The trend for this region is unofficially defined by the Tokyo financial markets.

Tokyo works from 7:00 pm to 4:00 am EST (EDT)

Nevertheless, this session is not restricted to Tokyo alone and attracts movement from other places. Given the fact that Australian, Chinese and Russian markets are so geographically distant, there are good reasons why the beginning and ending of Asian markets hours go further than the regular Tokyo hours. Minor fluctuations are due to the fact that Asian economies are highly dependent on the export of their goods, and therefore they do not need strong fluctuations in national currencies.

Asian economies are highly dependent on the export of their goods, and they therefore do not need strong fluctuations in national currencies.

European session (London)

As the trading day advances, not long before the Asian session closes its doors, the European session steps in on the activity. This particular area is crammed with multiple markets so this zone is notably busy, due to a number of leading European financial markets. London takes on the role of dictating the parameters for the European session, which accounts for 30% of all Forex operations.

London works from 3:00 am to 12:00 noon EST (EDT)

The European market is an interesting field since there are many influential platforms such as France and Germany, and they even start operating before the official start in the UK. At the time of its opening, the euro grew in price, and the market saw a strong price movement.

Such a situation is ideal for obtaining high profits, but this can only be achieved by experienced players who are able to monitor the fluctuations of many currencies and make a quick forecast regarding market trends. The session is extended to use the volatility generated by the London market.

There is strong price movement in the market, which is ideal for obtaining high profits.

US session (New York)

By the time the American market starts participating, the Asian session has already finished several hours prior. Nevertheless, the European participants have only gone through half of the working day. For the most part, the US session is naturally determined by what is happening in the States, for the most part, with some influence coming from Canada, Mexico, and a few other participants.

New York works from 8:00 am to 5:00 pm EST (EDT)

Unsurprisingly, the active state of the market in New York signifies intense volatility. If there is a news release that directly relates to the region, then it always causes a strong reaction and a very sharp change in exchange rates. This market is peculiar because it creates the strongest market price change in a matter of seconds.

The New York session signifies intense volatility and it creates the strongest price change in a matter of seconds.

The 8:00 am start of the US session is the unofficial start prompted by the early work of the futures exchange, commodity market and the noticeable inflow of economic and political news. As a result of the difference between the market closing time in one part of the world and a new trading day in another, a gap in liquidity takes place at 5:00 pm when the New York market closes.

Minor Forex trading sessions

Wellington/Auckland

Early Monday morning, New Zealand comes into play with the Wellington market, and it technically indicates the start of the new week.

Wellington works from 5:00 pm to 1:00 am EST (EDT)

Wellington is very calm and observes a rather small turnover. Because of this, it is not considered a very popular platform.

Sydney

Another market in the Pacific area is Sydney. The market activity only begins to gain momentum with this session because the real movement starts with the Tokyo session in two hours’ time.

Sydney works from 5:00 pm to 2:00 am EST (EDT)

Hong Kong/Singapore

The Hong Kong and Singapore exchanges open an hour after Tokyo and the movement is seen in pairs, such as the Japanese yen, CNY, the Hong Kong and Singapore dollar.

Hong Kong and Singapore work from 8:00 pm to 5:00 am EST (EDT)

After the news at 8:00 - 8:30 pm there is generally an off-peak period, which lasts a couple of hours. The trading volume increases towards the end.

Frankfurt

The amount of conversion operations in Frankfurt is significant. The operations are simultaneously carried out in London, Frankfurt and partly in New York, so it is great for conducting large-scale operations.

Frankfurt works from 2:00 am to 11:00 am EST (EDT)

Chicago

The majority of Chicago banks open an hour later than in New York.

Chicago works from 9:00 am to 6:00 pm EST (EDT)

The exchange time of the International Monetary Market (IMM) - a division of the Chicago Mercantile Exchange, CME - is 7:20 am 2:00 pm. The trading in currency futures is heavily conducted at IMM, which has a strong impact on exchange rates.

Overlaps in Forex trading sessions



Overlaps correspond to bigger price movements, leading to favourable circumstances. There are three overlaps that take place every day:

- Frankfurt and Tokyo (2:00 am to 4:00 am): there is a much smaller volatility movement compared to the New York/London overlap. However, there are still moderate fluctuations for you to use. EUR/JPY is the better combination to go for, as they are affected the most.
- London and Tokyo (3:00 am to 4:00 am): the profit opportunities can be seen in currencies that are in high demand such as yen, euro and pound combinations. Since the US market has yet to open, this overlap has moderate pip changes.
- New York and London (8:00 am to noon): the central time for the day, i.e. the most intense and fruitful period. Since more than 70% of all FX operations are carried out at this overlap, it is proof that high volatility brings greater profits. This has to do with the fact that the US dollar, euro and pound gain the biggest traction.

When is the best time to trade?

The most profitable period for conducting FX operations are the busiest periods, such as the sessions in London and New York. This involves large operation volumes, so take a look at whether your currency pair is in high demand. It also means sharp price changes, but keeping up with changing trends requires some experience. The presence of these two factors causes the most impressive results. This is common for the busiest sessions and their overlaps. The spreads also get narrower and this leads to lower fees.

The broadly acceptable principle is that Tuesday, Wednesday, and Thursday attract the biggest activity. In case you want to limit your work week, these three days would be the best choice.

That said, there are serious grounds for acting cautiously. If a trader wants to have tremendous profit, they might be tempted to use leverage as high as 1000:1. While this ratio could potentially provide large gains, on the flipside, the trader risks losing equally large sums of money because of one trade.

For example, you could be working with the EUR/USD currency pair. With the influence of busy traction, the New York/London session overlap could possibly yield the highest profits for you. Similarly, depending on what pair you are aiming to work with, you should research when peak activity takes place. Generally, it revolves around the local time zone for the national currency.

Conclusion



As a trader, the first task is to decide whether the periods of high volatility will be compatible with your particular technique. If they are, then you should recognise your optimal trade times – it could be a particular session, an overlap, or the short periods after economic and political releases.

Knowing the best market hours doesn’t mean you have to seize every opportunity for a favourable move. An FX trader could be forced to wake up extremely early to keep up with everything. This could cause long-term burnout and frequent mistakes, so you also have to consider your well-being.

Having enough information about what to do during certain Forex trading hours, in addition to a general knowledge of FX trading sessions, provides a significant benefit for your trading results.

[Libertex]

Looking to ditch fees when trading crypto CFDs? Look no further than Libertex!

Last December, Libertex announced that it was completely slashing commission, swap and exchange fees to zero on all crypto CFDs available on its platform as part of a special holiday promotion. But it was simply too good to let go since undoubtedly these are possibly the best trading conditions currently available on the market. The response from clients was so overwhelmingly positive that Libertex has decided to continue these trading conditions indefinitely.

The cryptocurrency sector is one of the most exciting areas of trading today, and Libertex is making it infinitely more exciting by eliminating some of the annoying fees that other brokers still charge. Essentially, this means that, with the Libertex platform, if you have €100 in your account, you can use your entire balance to trade crypto CFDs without wasting a big part of it on fees. That’s it! No catch, no fine print! With three different kinds of fees slashed to zero, Libertex lets traders save money that other brokers would normally charge as fees.

Libertex is possibly the only online broker to eliminate these three fees. Going forward, it plans to continue offering 0% swap, commission and exchange fees on all cryptocurrency CFD trades. These include Bitcoin, Ethereum, Litecoin, Stellar, Solana and any other cryptocurrencies on the Libertex platform. These special conditions are available for both new and existing Libertex retail clients (except UK retail clients, where cryptocurrency CFDs are not available).

How much money does a typical trader lose in broker fees?

When it comes to trading, while one can make or lose money on any individual trade, most brokers charge for their administrative services in several ways. Commission is charged for activity on a platform, such as deposits and trades. It is taken directly from the trading account's balance, usually as a percentage, and deducted before any transaction happens, whether or not the trade is successful. Swap fees are interest charged on holding a trading position overnight. Exchange fees are charged for currency and asset exchanges.

- 0% commission means that all the money you deposit for a trade will actually be used for trading. This is not the case with typical brokers, who deduct a percentage before any trading can take place. For example, if you deposit €100 with a broker that has a 5% commission fee, you will have only €95 to use for trading. When you trade crypto CFDs with Libertex, your €100 deposit will be fully used for trading. Many new traders are taken by surprise by commission amounts and end up trading less than they wanted to.
- 0% swap means that you will not be charged for holding a trading position overnight. Brokers usually charge swaps on currency pairs based on the interest difference between the currencies, so swaps are also percentage-based. However, the crypto market doesn't sleep, nor does it depend on any issuing government's time zone. Libertex recognises that it serves a large body of clients, and no one should worry about closing their crypto position by a certain time to avoid swap fees.
- 0% exchange fees mean that you won't be charged for exchanging cryptocurrency, whether to fiat money or other crypto CFDs, on Libertex. Most exchanges will charge a percentage-based fee for this, limiting a trader's flexibility.

So, what does it actually cost someone to trade crypto CFDs on Libertex?

The only thing a trader would pay on a crypto CFD trade with Libertex is the spread (the difference between the Ask and Bid prices). In other words, traders can expect to save a substantial amount of money with Libertex when making multiple trades, overnight trades, high-volume trades and more.

Fewer fees, more freedom in trading crypto CFDs

It is only natural for traders to do their best to minimise or avoid fees, but in the fast-moving crypto market, this can restrict their flexibility in responding to trends or cause unnecessary stress. Feedback from crypto CFD traders on Libertex indicated that they need cryptocurrency trading to be faster, more flexible and more friction-free than classic forex trading. By eliminating three different kinds of fees, Libertex continues its mission to make trading accessible for everyone and provide its clients with high-quality assets such as crypto CFDs and more.

Trade for More with Libertex

With over 24 years of financial market experience and more than 40 international awards, including most recently Best Trading Platform (Forex Report, 2021) and Most Trusted Broker of Europe (Ultimate Fintech, 2021), Libertex has been one of the leading platforms combining classic market expertise with cutting-edge technology, designing user-friendly software that makes the market accessible from any device, anywhere, anytime. Used by everyone from professional traders to complete beginners (who can start with a practice demo account), Libertex features a full range of tools and information in order for its clients to get the most out of the platform.

It only takes a few seconds to register with Libertex and enjoy the potential advantage of these unique crypto CFD trading conditions as well as a full range of stocks, commodities, and forex CFDs. Say goodbye to crypto CFD commissions for good and sign up to trade with Libertex!

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Cryptocurrency instruments are not available to retail clients in the UK.

Available for retail clients on the Libertex Trading Platform.

[Libertex]

What is Forex and how to trade on it?

The term "Forex" — also known as foreign currency trading, currency exchange or by its acronym "FX" — refers to Foreign Exchange or to transactions between currencies.

Today, it is considered to be the most important exchange market in the world with over $5 trillion traded every single day. The combined volumes of all the stock markets in the world do not even come close to this figure. But, what does that mean to you? Well, if you take a closer look at the currency market, you're sure to come across some intriguing trading opportunities that you won't find with other investments.

As for the price of each currency, that varies depending on its demand in relation to other currencies. In other words: the more in demand a given currency is, the higher its price will be and vice versa.

If you're still wondering exactly what Forex is, let's just say that it's basically a decentralized marketplace where you can trade all the major world currencies. It encompasses a wide range of different market actors, from the world's largest financial institutions dealing in big money transactions all the way to ordinary people converting a few dollars here and there. But they all have the same end goal — they either want to buy a currency and then sell it for more than they paid, or else sell a currency and then buy it back for less money.

To join the ranks of those already trading on the Grand Bazaar of exchange markets that is Forex, all you need is a computer, an internet connection and a trading account to complete your transactions.

How does Forex Trading work?



The aim of Forex trading is to profit from changes in the value of one currency relative to another. You can make a profit by buying a currency and then selling it at a higher price, or by first selling it and then buying it back at a lower price.

To understand how this works in practice you need to understand what exactly a currency pair is. Currencies are priced relative to other currencies. If you buy Euros (EUR) the price you pay will depend whether you are exchanging US Dollars (USD), British Pounds (GBP) or another currency for those Euros.

A currency pair consists of a base currency and a counter or reference currency. The base currency is the first currency in the quote, and the counter currency is the second. The counter currency is the reference currency in which the base currency is being quoted.

For most pairs, the most liquid currency is usually quoted first. However, when the USD is paired with the British Pound, Euro, New Zealand Dollar, or Australian Dollar, the USD is quoted second.

If the base currency is a foreign currency, the quote is known as a direct quote. If the base currency is the domestic currency, the quote is known as an indirect quote.

Currency pairs are divided into three categories:

- The most widely traded currency pairs in the world are known as the majors. They include the EUR/USD, USD/JPY, GBP/USD, AUD/USD, USD/CHF, NZD/USD and USD/CAD. You will notice that these pairs all include the USD.
- Currency pairs that include two of the currencies listed above, but not the USD, are known as minor currency pairs. These pairs are also known as cross currency pairs or crosses. Examples include EUR/GBP, AUD/JPY and GBP/CAD.
- Exotic currency pairs include one major currency and one other. The second currency is usually the currency of a developing nation like Turkey, Thailand or South Africa. However exotic currencies also include those of quite developed nations like Singapore and Hong Kong.

An important aspect of Forex trading is liquidity. If two countries have a healthy trading relationship, the currency pair with their two respective currencies should be very liquid. On the other hand, a currency pair that includes the currencies of two countries that don’t have trading relationships may be illiquid.

The major and minor currency pairs are the most popular to trade due to high liquidity levels. These pairs can be traded on any time frame as the spread is narrow. Exotic pairs can be traded but require larger price movements to cover trading costs. This means you will need high levels of volatility, or a longer time frame.

Types of Forex trading strategies



There are several approaches to analyzing and trading currencies:

- Fundamental analysis considers the difference between the economies of two countries and how that may affect the relative strength of each currency. This includes interest rates, money supply and trade balances.
- Technical analysis considers the price action of the pair. Price patterns, indicators and support and resistance levels are used to identify profitable trading opportunities.
- Traders also use news, market sentiment and algorithms to identify potential trading opportunities.
- Scalping strategies take advantage of short-term price movement that may last seconds or minutes to generate profits.
- Day traders use technical analysis to identify trades to hold minutes to hours. They close all positions at the end of the day.
- Swing traders hold positions for a few days to take advantage of larger price swings.
- Position traders and trend flowers hold positions for as long as few years. They follow major trends, or trade price patterns.

Lot sizes and how to calculate position size

One of the more confusing aspects of Forex trading is calculating the size of a position. The size of a position, which is the size of its exposure to the market, depends on the traded price, the lot size, and the number of lots.

So, what is a lot? A lot is the standardized trade size for Forex. One lot is 100,000 units of the base currency. So, if you buy 1 lot of EUR/USD at 1.1019, you are buying 100,000 Euros and you will be paying $ 110,190.

You probably noticed that if you are trading a lot size like that your minimum trade size would be quite large. Fortunately, you can also trade smaller lots:

- Mini lots are 10,000 units of the base currency
- Micro lots are 1,000 units of the base currency
- Nano lots are 100 units of the base currency

How to learn to trade Forex



Any type of trading requires ongoing learning. It’s not like becoming a doctor where you first learn and then do. In the case of trading you need to simultaneously learn and practice what you learn.

You can start out with a demo account (which you can do for free with Libertex) but your learning curve will speed up when you have ‘skin in the game.’ Some of the most important lessons to learn concern the way you react when you make money and when you lose money. So, it’s a good idea to graduate to a live account as soon as you feel confident trading with a demo account.

To improve your knowledge, you should read books on trading, technical analysis and technical analysis. For Forex traders its worth learning about economics and monetary policy too, as this is what drives the value of a currency. There are also lots of very good videos and blogs on these topics available on the internet for free.

Finally, you should keep a journal, set goals and track your progress. The more systematic you are about the process of learning the more efficient your learning curve will be.

Why is Forex the best investment option?

Foreign currency trading, or simply Forex as it's often called, is one of the most popular activities among investors today. More and more people are showing an interest in currency trading. Their reasons are numerous and varied, though many of them see it as a good source of trading income for the future. With the right strategy, people can definitely profit from this unique method of trading.

Forex has a variety of benefits that are helping it to expand the online trading market:

- Greater liquidity

It is the most liquid market in the world with a trading volume in excess of $5 trillion. This means you can open and close positions more easily than in other less liquid markets.

- Low volatility

In the Forex market, there are fewer variables affecting the price difference between two currencies. It is also far more predictable compared to other assets such as stocks, for example.

- Greater leverage

Leverage and volatility are closely linked. Since foreign exchange is a low volatility market, leverage will always be higher when trading with Forex.

- Constant price updates

You are able to check prices in real time 24 hours a day, 5 days a week.

- It is decentralized

As a market founded on decentralization, it is much more accessible and this, in turn, enables trading volumes to expand further and further.

Disadvantages and risks of Forex trading

Like any trading activity, Forex trading does come with some risks and drawbacks.

- Market risks

All trading instruments are subject to a range of market risks. Political, economic, and geo-political factors can contribute to increased volatility, which can make trading challenging.

- Potential for large losses

The use of leverage and margin can be used to increase profits but can also magnify losses. Forex traders must use leverage with caution, and make sure they are aware of the potential loss on each trade.

- Weekend Gaps

Because currency markets trade 24 hours a day, Forex traders do not have to worry about the overnight gaps that occur in other markets. However, Forex markets are closed over weekends, which can result I price gaps. Forex traders should be cautious when holding positions over a weekend.

- Liquidity

Some currencies can go through extended periods with low liquidity. This can result in wider spreads and greater volatility. Even liquid currencies can become illiquid at certain periods of a trading session.

- Counterparty risks

Forex is not traded on centralised exchanges like equities and other instruments. This means there is less oversight of the way trading occurs, and traders may not be protected if a broker becomes insolvent.

- Regulatory risks

Forex brokers are regulated by several regulatory bodies which depend on the country where the broker is domiciled. Traders should always ensure their broker is certified by a reputable regulator.

What does "spread" mean?



You have surely heard the word "spread" used endlessly in relation to the financial markets, but do you know its exact meaning?

Well, in most financial markets, you have three prices: the market price, the buy price and the sell price.

The word spread is used to refer to the difference between the supply (or sell) and demand (or buy) prices and is used for all shares and stock market derivatives.

In short, the spread is the difference between the sell price and the buy price.



In the chart margin, you can see the price for which you can buy the first currency and then compare it with the second currency.

Say the EUR/USD sell price is 1.300, if you want to buy €1, you should pay $1.30. Therefore, it would be advisable to make the purchase if you believe that the EUR will rise against the US dollar. In other words: you should buy only if you think you can sell your €1 for an amount greater than the $1.30 you paid for it.

In the event that you wish to sell, the chart will show you the price at which you can sell the first currency for the second.

If the EUR/USD sell price stands at 1.300, you could sell €1 at that price. However, it is only advisable to sell if you think that the price of the EUR will fall against the US dollar. Because then you could buy the same euro for less than the $1.30 you paid when you opened the position.

What is a pip?



A pip — short for point in percentage — is a very small measure of change in a currency pair traded on the foreign exchange market. It can be expressed either in terms of the quoted price or in terms of the underlying currency. A pip is a standardized unit and is the smallest amount by which a currency's quoted price can change.

The actual profit you receive will depend on the amount of currency you have purchased. For instance, if you bought micro lots (1,000 units) and trade with an account denominated in US dollars, the pip value will be $0.1. Thus, if your profit was 50 pips, this means you made $5. In the event you bought mini lots (one unit of 10,000), the pip value will increase to $1, making your profit $50. Similarly, when you purchase a standard lot (100,000 units), the pip value rises to $10, which translates to a profit of $500.

The same pip value will apply to all pairs where the US dollar appears in the second position. If it is listed as the first currency, though, the pip value will be different. To calculate this new pip value, you must divide the normal pip value by the current exchange rate. For example, if your currency pair is USD/CHF, you must divide $0.10 (micro lot value) by 0.9435 (the current exchange rate for CHF) to get $0.1060 (new pip value). If JPY is part of your pair, as in USD/JPY, you must follow the same steps and then multiply your result by 100 at the end.

What is leverage?



Leverage essentially means using something small to control something bigger. In the specific case of currency trading, it means having a small amount of capital in your account that you use to control a larger amount elsewhere in the market.

If, for instance, Forex offers you a leverage of 1:100, it means that you can trade with 100 times more money than the amount of your initial deposit. That means that, if you want to invest in 100,000 EUR/USD, you now only need €1,000. However, these kinds of trades come with much higher risk... Let's suppose you're using a leverage of 1:100: your losses could then be multiplied by a factor of 100. So only go for it if you are completely sure.

Advantages of leverage:

- Increase profits

The first and probably the most important benefit of trading with leverage is that it allows you to earn more money with less effort. Whatever it is you're trading and however much of it, the main purpose of leverage is to increase your per-trade profits.

- Increase capital efficiency

It follows that by increasing the amount of money you can earn per trade, you will naturally increase your capital efficiency, too. To understand the whole technical process better, consider your capital as an asset with the potential to offer a return.

Look at it this way: if it takes two days to generate £100 with unleveraged positions, leverage would mean that it takes a much shorter period of time to earn the same £100. This means your capital can be reinvested more and thus bring you more frequent profits.

- Mitigate low volatility

Another key advantage of leverage, especially when it comes to currency trading, is that it has the effect of mitigating low volatility. It is usually volatile exchanges that generate the highest profits. That's because these markets are moving in wider cycles than more stable instruments.

Take care when using leverage in Forex! Leverage can help you amplify your earnings, but it can also lose you a lot of money. Use it responsibly.

What are CFDs?

CFD trading is a popular form of derivatives trading. CFD trading allows you to speculate on the rises and falls of fast-moving financial markets (or instruments), such as stocks, indices, commodities, currencies and other liquid assets.

Trading with CFDs in currency pairs allows you to open long or short positions. A long position means you are buying the base currency, and you are effectively short of the reference currency. The price will rise if the base currency strengthens or if the counter currency weakens. You will profit if you close the position at a higher price.

If you open a short position, you are selling the base currency and buying the reference currency. The price will fall if the base currency weakens, or if the counter currency strengthens. You make a profit by closing the position at a lower price.

Advantages of CFDs:

Liquidity: CFD prices are a direct reflection of what is happening in the underlying market. This means that CFDs provide access to liquidity in the wider market, in addition to the liquidity offered by the broker.

The ability to work in different financial markets from one account: many brokers dealing with these instruments offer CFDs based on shares from different markets around the world, as well as other types of financial instruments such as gold, silver, oil, stock indexes, sectors, commodities, government bonds, currencies, etc. This gives traders the opportunity to diversify their trading and investments by maintaining a wider portfolio of options.

Ability to work at any time: many brokers offer their clients extended hours, which means they can work with certain instruments or markets such as the FTSE and Dow, even after the underlying market has closed for the day.

Traders can work for as long as they like: CFDs do not have a fixed maturity date.

There is no set contract size. Traders can work with volumes of any size.

CFDs are less complicated than options and guarantees: the direct price and liquidity of any given CFD are reflected in the underlying market.

Contracts for Difference (CFDs), are part of a group of derivative financial products which permit the use of leverage. This means that you can trade more money than you actually have, which increases your profit potential, but also amplifies your possible losses. For this reason, traders should have some previous experience of using leverage before trying it with CFDs as profits or losses could considerably exceed the amount invested.

Bulls and bears: Long positions vs short positions



The terms "bull" and "bear" are used to identify the two types of investors we encounter in the exchange market.

Bulls are unsurprisingly found most commonly in bull markets. This type of investor is optimistic and expects the price to rise and so prefers long positions as a way of making money. Therefore, in the context of FOREX, a long position is opened when the investor buys a pair of currencies and waits for the price to rise.

Bears, on the other hand usually reside in bear markets, where investors are pessimistic and expect prices to fall, thus electing to open short positions. With respect to the specific case of FOREX, a short position is opened when the investor sells a pair of currencies hoping for its price to fall.

How do I start trading Forex?

For the best results from Forex trading (Exchange Market), first make sure you follow these core principles:

- Select the currency pairs you will be trading. For Forex newcomers, we recommend currency pairs with high trading volumes. As a general rule, these will typically include the currencies of the world's biggest economies, such as the United States, European Union, United Kingdom, Japan or Switzerland.
- Know all upcoming economic events likely to affect your pairs. Currencies can be influenced by things like releases of macroeconomic data on major global economies and economic decisions made by their issuing Central Banks. Knowing about these kinds of developments can tell you a lot about the strength or weakness of your currencies.
- Set yourself a trading schedule. The best hours for trading are those during which volumes are at their highest. These typically coincide with the open and close of trade on the biggest foreign currency exchanges, e.g. New York, London and Tokyo.
- Use technical analysis tools. If you want to make money trading FOREX, you simply must make use of technical analysis. This type of analysis involves using charts to study price trends.
- Use leverage effectively. Knowing how to use leverage will help you to minimise your losses wherever possible. You need to set a "stop loss" or level of manageable loss for each trade. That way, you can avoid greater losses by closing a position that did not go as expected.
- If you have made it this far, then you must have been able to grasp all the concepts explained in this article. These concepts will help you to understand graphs and how to track the appreciation or depreciation of your selected trading currency, so you can detect potentially profitable investment opportunities.
- The next step is to create your own free Forex demo account. Once you have such an account, you can practice choosing currency pairs and buying them if you think they will increase in value.
- Then you will gradually acquire new strategies that will prepare you to start trading with real money. Eventually, these will help you become a prolific trader in one of the best positioned exchange markets in the world.

We recommend that you consult our free lessons before you start trading with real money.

[Libertex]

Crypto winter has arrived: why crypto CFDs might be a good option to consider now?

Alarming articles about the “new crypto winter,” i.e., multi-month bear market for Bitcoin (BTC) and major altcoins are popping up here and there. Crypto influencers and media outlets are reiterating that all signs of “winter is coming” are present. If true, which trading strategy can help holders to come through this painful prolonged correction? And is there a reliable service that can help in implementing such a strategy?

What is a bear market?
 
A bear market (“winter,” correction, recession) is a market situation in which the prices of the majority of assets are falling. It is accompanied by negative investing sentiment (from “fear” to “extreme fear”) and panic-driven selling. For stocks and index markets, analysts indicate the start of the bear market at which the rates are falling by 20% from the local peak. As crypto markets are far more volatile, bear markets start here only after a 45-55% decline.



Both traditional and cryptocurrency markets know long-term cycles: every market will go through a bullish and bearish stage. For instance, on Bitcoin (BTC) markets, a bearish recession followed 2013 and 2017 peaks. For the S&P 500 and Dow Jones Industrial Average (DJIA), the last prolonged bear markets took place in 2007-2009. Similar recessions were registered in March, 2020 but bulls managed to push prices higher.

Is the bear market already in for crypto?

While we cannot be sure about whether crypto markets are already in the “bear market” phase, there are some optimistic and pessimistic theories about this trend.

Bearish: Negative sentiment on social media and euphoria of illiquid NFTs

Mostly, analysts are sure that Bitcoin (BTC) and major altcoins have already dipped into bearish waters. Santiment statistics show that social media users have not been so bearish since mid-May 2021. As such, the “crowd wisdom” indicates a bearish correction. So does Chris Burniske, former ARK analyst and author of the most popular crypto asset valuation instruments. According to him, the surprising upsurge of the NFTs market is not good for Bitcoin as it siphons liquidity from digital gold and major altcoins. For Mr. Burniske, the entire situation looks like the “ICO boom” that ended with the “crypto winter” of 2018.

Bullish: Healthy on-chain metrics and RSI

At the same time, the data from many on-chain analytical instruments ‘screams’ that too many large-scale holders are aggressively increasing their bags. As per Coinmetrics, Bitcoin (BTC) holders are back to accumulating. So, the sell-off might be over which suggests the upsurge of price is on cards.



Also, Bitcoin Relative Strength Indicator dropped to ‘extremely overbought’ levels unseen since ‘Black Friday 2020 in Crypto’.

Switching to more flexible trading strategy: Psychology and instruments

Switching to more flexible trading strategy: Psychology and instruments
As the trading sphere has come through dozens of bear markets, there are a number of ready-made strategies that might prove helpful in overcoming a bearish recession with minimum losses.

Stablecoins

Increasing the share of stablecoins in the portfolio might also be a good solution for the bear market. When you are buying stablecoins, you do not need to “cash out” by withdrawing to SEPA, PayPal or other fiat accounts. With increased stablecoins bags, you will be able to either “buy the dip” in potentially promising assets or try “dollar-cost averaging” (DCA), which is generally considered as the go-to strategy for every bear market.

Diversification: Indexes, stocks, commodities

Last but not least, bear markets rarely target all types of markets simultaneously. So, the diversification of the portfolio should be increased. Bitcoiners can try adding ETFs and real world segment stocks, while “gold bugs” can experiment on ForEx markets.

CFDs on crypto: viable alternative for bear markets

Contracts for difference (CFDs) are contracts that allow traders to find potential benefits in volatility, while for others it might mean higher risks and potential losses as well. As crypto markets are the most volatile ones, trading CFDs here might bring significantly more benefits than that for stocks or commodities, but of course it might also bring losses as well considering the potential risks.

When you are certain that some of your assets have entered the bear market, switching to the strategy with dominant short positions might prove to be a smart move. By opening ‘shorts’ and ‘longs’, traders can benefit from price swings in either direction.

Libertex for crypto and Web3 enthusiasts: Trading with no exchange fees

To ensure maximum resource-efficiency for all categories of traders, Libertex introduced a completely novel architecture of fees. As of December 2021, all operations in cryptocurrencies CFD trading on Libertex platform are charged with zero commission fees. Zero exchange fees, commissions or swap fees are introduced for all positions from the crypto segment. As such, spread is the only extra expense for crypto CFD traders.This scheme is valid for all retail crypto trading clients except for U.K. traders, as CFDs on digital assets are not allowed in this jurisdiction.

As the market recession after the 2020-2021 euphoria gains steam, stocks and crypto traders should adjust their strategies to new contexts. Diversification, a resource-efficient fee model and advanced trading UX/UI is one of the best choices for trading in a bear market.

As such, CySEC-regulated Libertex is quite possibly one of the best go-to solutions for all categories of traders due to its unmatched range of assets available, user-friendly interface, large toolkit of deposits/withdrawals methods and reconsidered fee structure.

Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.3% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Cryptocurrency instruments are not available to retail clients in the UK.

Available for retail clients on the Libertex Trading Platform.

[Libertex]

The Best Forex Trading Patterns: Different Shapes, Common Signals

What do traders use to predict the price direction? Technical indicators, candlesticks and, of course, chart patterns.

Overall, there are many trading patterns that occur on the price chart daily. That's why they were divided into three groups. What are these groups? How do you remember all these patterns? Read our guide to get comprehensive knowledge about chart patterns.

Forex Trading Chart Patterns: Meaning

A chart pattern is a combination of support and resistance levels formed by candlesticks in a specific shape that helps to define whether the market will move in the same direction or turn around. There are three types of technical analysis patterns: reversal, continuation and bilateral.



Look at the picture below. Here's one of the most famous trade patterns: head and shoulders. As you can see, candlesticks are placed so that the pattern resembles a head and shoulders. Based on the candlesticks' location, we can define the support level. Later, we'll explain how to read this pattern's signal.



Trading Chart Patterns: Types

There are two major types of chart patterns: reversal and continuation. However, there is a third one that combines both types called bilateral patterns. Let's learn how to identify all types on the price chart and what patterns each type contains.

Reversal Chart Patterns

The name of the type explains the idea of the reversal patterns. These patterns predict the trend will turn in the opposite direction after their formation. If the price declines, a reversal chart pattern says the market will go up soon. Conversely, if the market rises, a reversal pattern sends you an alert that you should close a long trade and be ready for the market to decline soon.

Let's list the most effective and famous reversal chart patterns:
- Head and Shoulders and Inverse Head and Shoulders
- Double Top and Double Bottom
- Triple Top and Triple Bottom

Although chart patterns look different, we can highlight a key rule for reading their signals. To define a take-profit level, measure the distance between the support and resistance levels at the point where the pattern starts forming. This will be the distance between the entry point and the take-profit level. The entry point is the place where the price breaks either the support or resistance level, depending on the trend.

As for the stop-loss level, the idea is to measure the distance between the support and resistance levels and divide it by two. The concept suits the best risk/reward ratio of 1:2. However, we would advise you to evaluate the market conditions and use a trailing stop-loss if the situation is uncertain.

Continuation Chart Patterns

Continuation chart patterns appear when the current trend pauses. That's why they're sometimes called consolidation patterns. Trendlines serve as support and resistance levels. They occur on the chart when buyers and sellers can't beat each other, and the price consolidates for a while. Such patterns show the market will keep moving in the same direction.

Here's a list of the most famous continuation chart patterns:
- Pennants or flags
- Rectangles
- Wedges: rising and falling
- Triangles: ascending, descending and symmetrical

For most of these patterns, the trading idea is similar. You should draw support and resistance lines and measure the distance between them at the point where the pattern starts forming. This is the size of the area between the entry point and the take-profit level.

The same rules apply as with reversal patterns: the entry point occurs when the price breaks either the support or resistance level for the prevailing trend.

The stop-loss level differs. To define the size of the risk you're prepared to take, place the stop-loss above the resistance level for bearish patterns and below the support level for bullish patterns.

Bilateral Chart Patterns

A bilateral chart pattern is a pattern that doesn't predict a certain market direction. It sounds strange because the idea of the pattern is to predict the price direction. Still, the pattern will show you where the market will move. However, it won't happen during the formation of the pattern but after either the support or resistance level is broken.

Ascending, descending and symmetrical triangles are bilateral patterns. Although ascending and descending triangles usually signal a continuation of the trend, there's an odd price that will move in the opposite direction. Thus, you should always evaluate market conditions (for instance, whether the market is volatile) before opening a trade.

The Most Efficient Chart Patterns

We mentioned chart patterns above, but we can't just throw them at you without explaining how they look and work.

Head and Shoulders

A head-and-shoulders pattern is one of the easiest and most common patterns known even to newbies.

It's a reversal bearish chart pattern that forms at the end of the uptrend. Why is it head and shoulders? Because the pattern has three tops: the second is higher than the first one, but the third peak is lower than the second one. Thus, we have the highest peak, called the head, and two lower peaks, which are called shoulders. The perfect pattern has two shoulders that are similar in height and width.



As we said above, the third top is lower than the second one, which signals a weakening of the current trend.

Also, the pattern has a neckline. That's the line drawn through the lowest points of the two troughs that serves as a support level. The neckline can be drawn horizontally or moving down/up. The signal is stronger if the neckline declines.

The pattern works when the price breaks below the neckline (support level) after the formation of the second shoulder. You can open a short position at the breakout. A take-profit order can be placed at a distance equal to the distance between the top of the head and the neckline.

Remember the stop-loss point. You can always apply a 1:2 risk/reward ratio. So, a stop-loss order will be half of the take-profit distance and placed above the breakout point.

Hint: We should warn you that the price can return to the neckline after the breakout point. So, the neckline will turn into resistance.

Inverse Head and Shoulders

An inverse head and shoulders or head and shoulders bottom is a reversal bullish chart pattern.

The inverse head and shoulders pattern mirrors the standard one. It consists of three lows, with the head as the lowest bottom, while the shoulders are almost the same size.



The pattern begins when the price forms two lower lows that signal a downtrend. However, the third low is higher, which means bears lose their strength, and there are odds of an uptrend occurring.

The reversal is confirmed when the price breaks above the neckline. Take-profit and stop-loss orders are defined as in the standard head and shoulders pattern.

Double Top

A double top is a bearish reversal pattern that occurs at the end of upward movement. This pattern is as famous as the head and shoulders one because it's easy and frequent.

The name of the pattern explains its idea. If you find two consecutive tops of similar or nearly similar height with a moderate trough between them, it's a double top pattern. The neckline should go through the lowest point of the trough.



The pattern works when the price falls below the neckline after the second top is formed. A trader can open a sell trade after the breakout point.

To measure the take-profit level, measure the distance between the tops and the neckline and put it down from the neckline.

The stop-loss level can be measured according to the risk/reward ratio. Divide the take-profit distance by two and place this number of pips up from the neckline.

After the breakout, the neckline becomes a resistance. Like in the head and shoulders pattern, the price can turn back and test the neckline again.

Double Bottom

As you might have guessed, the double bottom is a mirror pattern of the double top. It's also a reversal pattern, but it occurs at the end of the downtrend.

The double bottom consists of two consecutive bottoms which have similar or nearly similar length. Also, there's a high between them. The neckline is drawn through the highest point of the trough.



The pattern works if the price breaks above the neckline after the formation of the second bottom. The take-profit and stop-loss levels are measured the same way as in the double top pattern.

The price can retest the neckline after the breakout. However, it's anticipated to rise after the pattern's formation.

Triple Top and Bottom

These patterns are rarer, but we should tell you about them so you know they can appear on the price chart.





The patterns resemble double top/bottom patterns and work similarly. The only difference is that triple bottom/top come into play after a third peak/low is formed.

Symmetrical Triangle

There are three variations of triangle patterns, all of which are easily recognisable. To define a triangle pattern on the price chart, you should draw the support and resistance levels. The idea of triangle trading is to open a trade when a breakout occurs. It's risky to trade within the triangle.

A take-profit order for any type of triangle can be defined by measuring the distance of the widest part of the pattern. This distance should be measured from the entry point. To define a stop-loss order, use a 1:2 risk/reward ratio.

The symmetrical triangle is neither bullish nor bearish. The signal depends on the direction of the breakout.



The support and resistance levels move towards one point. The support goes up, and the resistance slopes down, so they meet at one point and form one angle.

You can use two different approaches to trading a symmetrical triangle. You can wait until the price breaks either a support or a resistance level and open a trade after the breakout. Or, another way is to place a One-Cancels-the-Other Order. So, when one order works, the other will be cancelled automatically.

Descending Triangle

A descending triangle is considered a continuation pattern that signals that the downtrend will continue. Still, it's tricky and can be called a bilateral pattern as the price may turn in the opposite direction to the prevailing trend.

In common concept, the descending triangle shows that bears are strong enough to pull the price further down.



In a descending triangle, the resistance line slopes down, while the support is almost horizontal. The price is expected to break the support level and keep falling. So, as soon as the breakout occurs, you can open a short position.

We don't recommend opening a trade before the breakout as the price could break the resistance, and the trend could change.

Ascending Triangle

An ascending triangle is also a bilateral chart pattern. Still, the main idea of the ascending triangle is a trend continuation. The pattern depicts the strength of bulls, so they are ready to push the price further up.



Opposite to the descending triangle, the resistance of the ascending triangle is relatively flat, while the support level slopes up. Although the price can break both the support and resistance levels, the more common case is that the upward trend continues, so the price breaks above the resistance.

You should wait for the breakout to occur before opening a trade since any bilateral pattern includes risks.

Pennants

A pennant is a continuation chart pattern that occurs after a strong move. The pennant reflects a pause in the strong market direction no matter if it's an uptrend or downtrend. There are two types of pennants: bearish and bullish.

As the market moves in the same direction, forming an almost vertical trend, it needs to pause. This short-term pause when the price consolidates is called a pennant.



Traders enter the market on the breakout in the trend's direction. The take-profit level can equal the distance of the move ahead of the pennant formation. A stop-loss order should be placed above/below the beginning of the pattern.

You may be confused because pennants and triangles look similar. The difference is in their timeframes. A pennant is a short-term pattern that happens when the market moves strongly up or down. A triangle is a medium- or long-term pattern that occurs independently of the previous trend.

Flags

Flags are considered more reliable than triangles or wedges because they're less frequent. There are two types of flag patterns: bull and bear. Although the price may break in any direction, in most cases, the flags are continuation patterns.





The flag pattern resembles a flag and looks like a small channel after a strong movement. The flag moves in the opposite direction to the prior trend. After an upward movement, it slopes down. After a downward movement, it has an upward slope.

Traders should enter the market after the breakout. A take-profit order should equal the size of the flagpole (the distance of the movement before the flag's formation). A stop-loss can be placed above/below the beginning of the flag.

Wedges

A wedge is a chart pattern that predicts a trend continuation. There are two types of wedge patterns: rising and falling.



The pattern's support and resistance levels move in one direction, so the channel narrows until the price breaks any of the levels. During an ascending (rising) wedge, the support and resistance lines move up. However, the rising wedge is a bearish pattern that signals the price will keep moving down. In a descending (falling) wedge, the support and resistance levels decline.

When the price breaks below the support level, a trader can enter the market. To measure the take-profit level, calculate the distance of the widest area of the pattern. A stop-loss order can be placed above the resistance in the rising wedge and below the support in the falling wedge.

Rectangles

A rectangle is a continuation chart pattern that occurs due to a pause in the trend. There are bearish and bullish rectangles. The pattern consists of flat support and resistance lines that the price tests several times before breaking out.



The rectangle's signal depends on the trend. If the rectangle happens during an uptrend, it signals that the price will keep rising. If the rectangle occurs during a downtrend, the odds are that the market will fall.

To enter the market, wait for the price to break either the support or the resistance. The take-profit should equal the distance between the support and resistance lines. A stop-loss order can be placed above the resistance in a downtrend and below the support in an uptrend.

Reading Forex Chart Patterns

Follow these steps to read forex chart patterns:

- Step 1. Try to define the shape of any of the top patterns we mentioned above.
- Step 2. Define whether it's a continuation, reversal or bilateral chart pattern.
- Step 3. Draw support and resistance levels.
- Step 4. Wait for the price to break the support/resistance to enter the market. Don't open trade before the breakout because it could be a fake breakout. That's why you should get confirmation from other technical tools.
- Step 5. Define your take-profit and stop-loss levels in advance to avoid losses.

Tips for Traders: Everything About Chart Patterns

We've prepared a few simple rules that will make your trading more effective:

- There's no perfect chart pattern that will provide 100% accurate signals and can be applied to any market condition. Some patterns occur during high volatility, while others are workable for calm markets. Also, you should remember that the chart's timeframe affects the strength of chart patterns. That's why any chart pattern needs confirmation of the signals, which you can get by applying technical indicators.
- Chart patterns are divided into several groups: reversal, continuation and bilateral. All you need to do is learn the signals of the top chart patterns and apply them when you encounter the pattern on the chart.
- The support and resistance concept is key to any pattern's signal. All you need to do is to draw these levels, and you'll catch the signal.
- Chart patterns provide perfect entry, stop-loss and take-profit levels.
- Although chart patterns have different shapes, each type has common rules for how to read signals.

Conclusion

"Why do traders use chart patterns? Isn't it complicated to remember all the shapes and signals they provide?" If you still think this, you should do more practice looking for chart patterns in the real market.

However, we don't recommend training in a real account since an incorrect read on chart patterns can lead to losses. Use a Libertex demo account, which allows you to practise in real-market conditions on a wide range of trading instruments, on CFDs.

[Libertex]

Crypto CFD trading to hedge the hodling

When trading crypto CFDs, you are speculating on whether your chosen asset will rise or fall in value. You will not be taking any form of ownership of the digital asset. Libertex, a multi-awarded online broker, recently announced that it has completely slashed fees on all crypto CFDs to zero in terms of commission, swap, and exchange fees.

It means that when deciding to trade with the Libertex platform, if you deposit €100 in your trading account, you can use that entire balance to trade crypto CFDs with. So you will not be wasting a big portion of that on fees.

Here are some of the benefits of trading the exciting cryptocurrency market via CFDs:

The large market moves: High volatility

Even though the cryptocurrency market is well within its infancy, there is a significant amount of volatility, with so much interest and activity continuing to grow day in and day out. The sheer size of movements that can be observed in a daily session is what makes this market so thrilling.

These rapid intraday movements in asset prices can provide several opportunities for traders to go long or short; however, that does come with increased risk. Therefore, it is crucial that if you decide to dive into the cryptocurrency market, be sure to have done proper research and have a good risk management plan in place.

Crypto does not sleep: 24/7

The cryptocurrency market is typically available to trade 24 hours a day, seven days a week because there isn't any centralized governance of this market. Instead, transactions via cryptocurrency take place directly between individuals on cryptocurrency exchanges across the globe.

Faster transaction times: Improved liquidity

Generally speaking, the cryptocurrency market is much less liquid than other asset classes, given its infancy. Liquidity is measured by the speed and how easy it is for a cryptocurrency to be converted into cash without impacting the market price.

Liquidity is important because it allows for better pricing and faster transaction times. Also good for higher accuracy when conducting technical analysis. As the market continues to grow, then these conditions improve for traders.

When trading cryptocurrency CFDs with Libertex, you get access to good liquidity because it sources prices from multiple sources on the trader's behalf. It means that the trades are more likely to be executed at a lower cost and faster.

Greater exposure: Use of leverage

Crypto CFDs are a leveraged product, enabling traders to open positions on what's known as margin. It is a deposit worth just a fraction of the full value of the trade taken. So essentially, you can gain a larger exposure to the cryptocurrency market while only needing to tie up a relatively nominal amount of your capital. 

In terms of the profit and loss on these crypto CFD trades, they will be reflecting the full value of the position at the point of it being closed, so you do have the opportunity to make larger profits from a relatively smaller investment potentially.

However, do, of course, note that on the flip side, it can also amplify any losses, which can exceed your initial deposit. Therefore, it is vital to have a proper risk plan, including stops and targets on these trades.

 
75.3% of retail investor accounts lose money. Zero Commission fees on crypto CFDs are available for retail clients on the Libertex Trading Platform. Cryptocurrency instruments are not available to retail clients in the UK.

[Libertex]

How to Catch Effective Forex Signals

Whether you're a newbie or an expert trader, it's worth using professional forex signals. Signals save you time and provide a higher chance of making a successful trade.

Also, it's an opportunity to use others' wisdom to improve your skills or discover a new trading method. However, not all signals are reliable. Let's learn how to distinguish between a strong signal and a failing one.

Forex Signals: Definition

A forex signal is a recommendation to open a position based on particular conditions. Usually, signals occur in the currency market, but they can be provided in other markets as well. Signals can be made by professional traders, analysts or companies, and come free and paid-for.

A forex signal includes information on the perfect entry point, take-profit and stop-loss levels. The best recommendations contain the reasons for the signal, giving you information on a profitable signal and the strategy or method an expert used. That helps you acquire new knowledge.

Why Choose FX Signals

There are several reasons why you should rely on signals and not merely your own decisions.

- Expert opinions. If you're a professional trader, you can use forex signals to get confirmation of your opinion. Also, it's a great way to save time. If you're a beginner, expert signals will help increase the chances of obtaining a profitable position.
- Gain knowledge. Whether you've just started trading forex or you've been in the market for an extended period of time, there are different approaches and strategies you can still learn.
- Save time. Sometimes, it's not easy to find suitable circumstances to open a position, and you may waste lots of time trying to do so. Using other traders' signals saves you time for other endeavours.

What's Included in Trading Signals

Let's consider the points that are included in trading recommendations:

- Entry point. As we mentioned above, a forex signal contains information about the entry point. It tells you at what level you should enter the position. Usually, professionals give signals for upcoming positions, so it's unlikely you'll see a signal that suggests opening a trade immediately because a trader may read the signal several hours after it's issued. Unclear conditions will lead to losing positions.
- Take-Profit. It's not enough to enter a position at a reasonable level. You also need to know where to exit a successful trade. That's why the signal will contain a take-profit level. If the signal is promising, there could be several take-profit levels.
- Stop-Loss. No matter how long you've been trading, there will always be a risk of loss. Even Warren Buffett and George Soros, two of the wealthiest and most successful investors in history, make mistakes. To limit losses, forex signals include a stop-loss level. If the market moves against you, you'll have a chance to save your funds.
- Buy or Sell. Any decent signal should say whether to buy or sell the asset. Some alerts may have both an alert to sell and to buy. That means that the current situation is unclear. As such, the direction of your position will depend on the specific conditions that should be met for one of the signals to work.
- Additional information. Usually, traders and analysts explain the reasons for a signal. Among the various reasons are pattern, candlestick or indicator conditions. This information may also include a chart.

Forex Signals: Types

There are different types of signals. Because there are two main types of analysis, we can divide signals into fundamental and technical. However, the most accurate signals are usually based on both types of analysis.

Fundament Signals

Fundamental analysis is based on news and economic data. Analysts who use fundamental analysis base their signals on economic data, as well as political and economic news. Thus, fundamental signals work ahead of significant market events.

One kind of economic event that provides more precise signals is a central bank meeting. For example, if the Federal Reserve is anticipated to cut its interest rate, the US dollar will depreciate ahead of the meeting and for some time after the decision is announced. Therefore, the signal will recommend buying the EUR/USD pair.



Technical Signals

Technical analysis is based on historical price movements. Analysts use different instruments such as indicators, charts and candlestick patterns that predict the price's direction. Unlike fundamental signals, technical ones are often made by both analysts and forex bots. A forex bot follows algorithms that include particular conditions that signal possible entry and exit points.

Let's say, for example, that you're trading the GBP/USD pair. The RSI indicator predicts a price reversal, and its line has crossed 30 upward. That's a signal of a bullish movement, so the signal will recommend buying GBP/USD.



Manual Signals

Manual signals are made by people. Professional traders or analysts working for a company or on their own use their experience, knowledge and proven strategies to provide trading recommendations.



Automated Signals

Automated signals are provided by software programmed with a specific algorithm that follows price movements and generates signals regarding particular circumstances.



Paid Signals

Some companies provide paid signals. To get them, you need to pay a fee or choose a subscription plan.



Free Signals

Most forex brokers offer free signals on their websites that are available to their clients and everyone else. Moreover, many famous traders publish trading recommendations on social media.



Entry Signals

If we consider short-term signals, they always have an entry point. If you find a trading recommendation for the short-term position with only an exit level, it's more likely that the signal will fail because there's no clarity on the entry point.



Exit Signals

Usually, signals provide the entire range of information: the entry and exit points and the stop-loss level. However, if a position is held for an extended period of time, there can be signals with only an exit point on the current open trade.



Where to Find the Best Forex Signals

Forex signals are available online, and you can find forex signal providers very quickly.

Forex Brokers

Most forex brokers provide signals, either free or via a paid subscription plan. If the broker is trustworthy, they'll offer a trial period to test whether the signals work. Plus, they may have a track record of successful trades that will confirm the alerts are workable.

The main advantage of this signal provider is that if you find a reliable broker you want to trade with, you don't have to waste time seeking a signal provider. Moreover, forex brokers may offer signals for free to their clients.

Specialised Companies

Also, there can be companies that provide paid forex signals. The main drawback you may meet is signals' effectiveness. Reviews will help you to evaluate their efficiency.

Bots

There are many companies and individuals that program bots for forex signals. However, these bots' services aren't free. Be careful before buying them because bots have many limitations. They don't evaluate market sentiment and don't consider fundamental factors. Check the signals before starting.

MetaTrader

If you trade on a MetaTrader platform, there are signal providers you can subscribe to. Moreover, you can implement bot algorithms that will alert you about profitable opportunities. MetaTrader allows many providers to submit their signals, so there's a risk of running into some failing recommendations.

Copy Trading

Another option that's similar to providing signals is copy trading. While using forex signals, you can decide whether to use the signal fully or not. If you have previous experience, you can take the signal as advice and modify it.

How to Choose the Best Signal Providers

It might be challenging to find a reliable forex signal provider as there are a vast number of companies, private analysts and investors in the market.

Confirmation

The first decision you should make is whether you're ready to pay for signals or not. If you choose paid recommendations, you can require information on the success rate. Moreover, a provider of paid signals should be authorised.

Even if you use free signals, a provider may share their signals' success rate by posting the performance of previous trades. If there's no information on a success rate, you can use a demo account to check whether the signals work.

Libertex offers a demo account that's similar to a real one. You can trade on it with simulated money risk-free to see if the signals perform well.

Information

Before relying on a signal, check what data it includes. Reliable signals should consist of data onthe entry and exit points and the stop-loss level, along with an explanation of how the signal appeared on the chart. Bot signals don't provide an explanation; instead, their reliability is based on mathematical algorithms.

Reviews

If reviews are available, you can check them for the signal provider. However, only companies that specialise in paid forex signals will have reviews. If you're thinking about free alerts provided by a private analyst or trader, the chance to find reviews is smaller.

Huge Rewards

Beware: the forex signals market is full of scams. If a provider promises enormous rewards, it's more likely a scam that wants your money.

Comparison

If you're not sure which signal provider is better, check their success rate and the range of information. If you don't get a full explanation of the reasons for a particular signal, there's a risk the signal won't work.

How to Use Trading Signals

To fully understand how to read signals, let's consider an example in which you want to trade the XAU/USD pair. The signal is: SELL 1.764; TP 1.759; SL 1.766.

Step 1. As you can see, the signal is to sell gold against the US dollar. The entry point is 1.764. So, you should place a sell order at this level.

Step 2. Place the stop-loss (SL). Since this is a sell signal, the stop-loss should be placed above the entry point.

Step 3. TP stands for the take-profit level. Place the take-profit or exit point below the entry level.

If the signal doesn't contain a chart, the written information may include details on the current price. When reading the recommendation, you'll understand whether the signal is still relevant or not.



How to Choose Forex Signals

Signal providers try to create recommendations that suit a wide range of traders, but there are several rules you should follow to understand whether the signal suits your account and strategy:

- Evaluate the risk. If the signal suggests holding a position for a long time, you should evaluate whether your account can handle possible market fluctuations.
- Check before using. If you use bot signals, remember that they're based on technical analysis that doesn't consider fundamental factors, which may lead to high volatility, so check market conditions. Simultaneously, even if you rely on signals made by people, you should know that unpredictable news comes up frequently. The time lag between the signal and order placement may cost the success of your trade.
- Choose preferable assets. There are lots of signals for different securities. However, not all of them will match your aims. For example, exotic currencies are not the best option for newbies as they bring high risks.



Trading Strategies and Forex Signals

As we mentioned earlier, the choice of trading signals depends on your aims and account. Moreover, different strategies may affect your decision. There are companies that provide signals only regarding a specific strategy.

Scalping

Let's look at scalping, for instance. Tiny positions are the core of this trading strategy. As such, signals for scalpers should apply to small timeframes, preferably no higher than one hour. Moreover, these signals will have a slight difference between the entry and exit points, and there may be several take-profit levels that will allow you to take profit step by step.

Intraday Trading

Intraday trading assumes you hold a position within a day and close it before the next trading day arrives. That means the trading signal should be based on medium-term timeframes such as one hour, four hours and daily. The difference between entry and exit points will mostly depend on fundamental analysis. If there are significant economic events or news, there might be a big difference between the points.

Swing Trading

In general, swing trading is based on technical analysis. The signal provider should find a prominent pattern or indicator that signals market fluctuations. Swing positions can be held for longer than one day, so the spread between the entry and exit points may widen significantly.

Conclusion

To summarise, a forex signal is a useful helper for both beginner and professional traders. It saves you time and effort and provides an opportunity to place successful trades. However, a considerable number of signal providers make it difficult to choose a reliable one.

So, to check whether the provider is trustworthy, try using a demo account. Libertex's demo account gives you the opportunity to test signals risk-free and at no charge to see if they work with a high success rate.

[Libertex]

Apple (AAPL) Stock Forecast

Not many publicly-traded companies manage to achieve the delicate balance between being a significant option for market participants and a favorite among the public. Apple Inc. has not only achieved this balance but very masterfully maintained it over the years as well, with the market cap of Apple nearing $3 trillion.

Discover what makes the AAPL stock immensely popular, the factors that can drive its price up or down, and the expert predictions for the status of Apple stock in 2022 and beyond. Furthermore, you'll find technical analysis for Apple stock's price prediction along with answers to whether this stock is a buy, sell or hold at the moment.

About Apple (AAPL) Stock

Apple Inc., formerly known as Apple Computer, Inc., is an American multinational technology company that manufactures personal computers, tablet computers, smartphones and computer software. Headquartered in Cupertino, California, Apple was the first successful personal computer company and popularised the graphical user interface.

Apple is the largest information technology company by revenue. In August 2018, it became the most valuable publicly-traded company in the world by crossing a market capitalisation of $1 trillion. Two years later, in August 2020, Apple achieved the milestone of being the first company to have a market capitalisation of $2 trillion.

As of 11 January 2022, the stock status of Apple listed on the NASDAQ Stock Exchange is $175.08. When it comes to Apple stock, what makes this company a favourable option for many investors is not just the value its products and services offer but also the impressive fan-following the company has built.

What Affects Apple's (AAPL) Stock Price?

Before you decide to trade or invest in AAPL CFDs, it's important to understand the factors that can affect Apple stock price prediction. Knowing them can potentially help you make more informed and less risky decisions. The following factors have had a hand in driving the price of Apple stocks in the past and will likely continue to do so in the future.

iPhone Sales

The iPhone has long been the largest revenue generator for Apple. Over the years, in many financial quarters, the revenue iPhone brought to the company was more than half the total revenue. Penetration in current and new markets, such as in China, could increase Apple's market share in the smartphone industry. At the same time, competition from an increasing market share of Android phones could hurt Apple's standing.

iPad and iMac Sales

Sales of laptops, tablets and computers to individuals and corporations are another major contributor to Apple's revenue. In 2018, sales of iPads and Mac laptops and desktop computers declined due to competition from other brands. In 2019, new versions of various devices were announced, such as the iPad Pro and MacBook Air. Thus, consider the competition from rivals in this category and the resulting consumer response.

New Products

The release of new products — such as the HomePod, launched in February 2018, and the Apple Watch, launched in April 2015 — can also increase public interest in the company and lead to a surge in the stock price. Similarly, the company's decision to venture into the electronic self-driving cars industry has also led to buzz lately.

Market Sentiment

Although this is a tangible factor, it has a significant effect on the stock price of not just Apple but usually most other publicly-traded companies. Investors expect Apple to beat the estimates for their financial performance, and if the company is able to surpass the estimate by a large margin, it increases investor confidence in the company.

Apple Stock Price in the Past

Let's have a look at how the shares of Apple have performed in the past:



- Over the past 5 years, the stock price of Apple has increased by 400%.
- Due to the coronavirus pandemic, the stock price fell to $56.56 from $81.73 in less than 30 days.
- Apple recovered gradually, and in September 2020, it was able to gain a value of $133.88, more than double the low of $56.56 in March 2020.
- The trailing return of Apple has been 42.59% over the last 5 years, whereas the industry has delivered a trailing return of 42.4%.

That being said, while knowing the historical performance of Apple stock is necessary, it does not reflect how it will perform in the future. For this, let's consider where the experts predict AAPL will be in the near as well as the distant future.

Apple Stock Technical Analysis

The most accurate indicators for Apple stock forecast can be determined from its technical analysis.



As shown by the charts above, which present the picture for one month, the overall current trend for Apple stock is strongly bullish. The price of the stock is going up, and technical indicators such as moving averages are hinting at a strong buy. Even oscillators are at a neutral position without there being any pressure to sell any shares.

According to TradingView, almost all moving averages, including the Exponential Moving Average, are signalling to buy AAPL. Oscillators, on the other hand, are mostly neutral, including the Relative Strength Index (RSI). When considering the overall summary, even the buy-to-sell ratio is very high.

These figures indicate that it is probably a favourable time to consider investing in Apple. Still, there are risks you need to consider and accept.

Apple Stock Forecast for 2022 by Experts

Although it's imperative that you conduct your own research before making any trading decision, it can help knowing how the experts and leaders in the industry are expecting Apple to perform in the future.

Katy Huberty

Katy Huberty, the managing director and a senior analyst at the American multinational investment bank Morgan Stanley, predicts that Apple shares could hit $200 in the coming years. This prediction is based on the fact that Apple is working to tap into two very lucrative markets: augmented/virtual reality and autonomous reality.

The company has announced its plans to venture into the electronic self-driving car market, as well as its desire to manufacture augmented reality headsets. This prediction is highly optimistic, and as it is an analyst view from Morgan Stanley, it has led many to reaffirm their belief in Apple stocks rising in the future.

Ivan Feinseth

Ivan Feinseth, the Chief Investment Officer and Director of Research at Tigress Financial Partners LLC, has also shared his price target for Apple stock, setting it at $198. He reiterated a Buy rating on AAPL and analysed that Apple's stock price may not stop there.

Predictions by other analysts and experts have also led to a price target consensus of $170, which indicates a strong Buy. There are hardly any forecasts by experts hinting at a downside for Apple in the next 12-18 months.

Short-Term Apple (AAPL) Price Prediction for 2022

Here are some of the most reliable and trustworthy figures for Apple stock price prediction for 2022.

Wallet Investor

According to the Wallet Investor, Apple is predicted to start 2022 with its stock priced at a minimum value of $179.375. By the end of the year, the best estimate given is $220.965, which is an appreciation of 29% on the current price of AAPL.

Yahoo! Finance

Yahoo! Finance is also expecting strong returns from Apple for 2022, according to its predictions. It has forecasted that Apple's expansion into the virtual reality sector is bound to drive its share prices higher. In addition to this, the returns are also looking very strong due to the fact that AAPL has been able to defy the volatility lingering in the market due to the Omicron variant of COVID-19.

LongForecast

LongForecast has some of the most optimistic predictions for the stock price of Apple, with its estimates starting at $180 in January 2022 and going as high as $290 by the end of the year.

Apple Price Forecast for 2023-2025

Apple stock forecasts for the years 2023 to 2025 are looking extremely positive, according to the predictions by Wallet Investor. Although the rate at which AAPL is expected to grow is not constant, it is still predicted to move upward, and no downtrends are predicted.

In fact, by the end of the year 2025, Wallet Investor expects that AAPL stock will likely be, at a maximum, $347.362. CoinPriceForecast, moreover, has surprised many with its astonishingly high expectations from Apple stock in the upcoming years. It has forecasted the values of $217, $254 and $311 for the years 2023, 2024 and 2025.

Long-Term Apple Stock Price Prediction 2026-2030

When it comes to Apple stock predictions for longer durations such as periods beyond even 2025, the results should be taken with a grain of salt because there are too many factors at play that could impact the stock price at any given instant. That being said, since these stocks are not very volatile, the predictions can still help with decisions regarding trading and investment.

Wallet Investor forecasts a bullish movement for Apple stock where the year 2026 is predicted to end with the stock price at $387.518. CoinPriceForecast expects Apple stock to continue appreciating, reaching values as high as $466 in 2030.

Conclusion

Apple is currently the leading tech giant in the world. Investor attitude and market sentiment are both at a decent level for this company. This is especially true considering its future plans to venture into the augmented reality and autonomous vehicles industry. Thus, the predictions are seemingly very favourable and optimistic as well. However, at the end of the day, predictions are mere estimates that cannot guarantee future performance.

To ensure that you are well-aware of stock CFDs and your trading moves, consider practising in a controlled environment and learning useful skills before you start investing your actual money. You can create a demo account at Libertex to get started today.

[Libertex]

Moderna (MRNA) Stock Forecast

Moderna went from a biotech company suffering losses for a few years to bringing in billions in revenue in just a few months thanks to its COVID-19 vaccine. Its high rise to popularity on the Nasdaq stock exchange makes it a favourite among many investors who are considering it for the long term.

Learn why Moderna is currently among the most popular stocks, what affects its stock price, and what is the Moderna stock forecast according to the experts. If you're looking for longer-term information, you can also check out the price predictions for the years beyond 2026.

About Moderna (MRNA) Stock

Moderna Inc. is a US pharmaceutical and biotechnology company based in Cambridge, Massachusetts. It specialises in RNA therapeutics, with a primary focus on mRNA vaccines. These vaccines use messenger RNA, or mRNA, which is a copy of a molecule, to produce an immune response in the body.

Currently, the biotech company has only one commercial product, namely the Moderna COVID-19 vaccine. Since its inception, the company has worked towards building a leading mRNA technology platform, created infrastructure to accelerate drug discovery and developed an expanding pipeline to create a new generation of transformative medicines for patients.

Moderna is listed on the Nasdaq stock exchange as MRNA, and as of 20 December 2021, its stock price is $294.80. This is a very high price for the stock considering many leading and well-known publicly-traded companies have stock prices far below this. It would not be unfair to primarily attribute this high price to Moderna's coronavirus vaccine.

What Affects Moderna (MRNA) Stock Price

Knowing the factors that drive the price of MRNA is essential if you are considering buying, selling, or holding Moderna stock. So, what is the key performance indicator when evaluating Moderna stock forecast?

For Moderna, the primary source of revenue as of late has been its COVID-19 vaccine, which has been the main driver behind Moderna's high stock price on the Nasdaq stock exchange. Reliance on one commercial product for revenue is not very unusual for a large company, considering that Moderna was founded in 2010. In 2018, it had its IPO, where it set the record for the largest IPO in biotech history. The company was not even expected to roll out a commercial product using its revolutionary mRNA technology, but it surprised the world with the accelerated development and manufacture of the Moderna vaccine. For now, the company's stock price is closely linked to the coronavirus vaccine, supply and demand for it, and its relevance in the future.

In addition to this, most Moderna investors have confidence in the claim that mRNA-based vaccines will drastically raise the antibodies in humans. However, the first human trial results from Moderna's experimental seasonal flu shot failed to meet expectations, signalling that mRNA-based vaccines do not always turn the body into an antibody-making machine. This led to a 14% drop in the company's stock price in early December 2021.

As such, it can be concluded that apart from the circumstances surrounding the COVID-19 pandemic, the results and efficacy of any product that Moderna rolls out will directly affect its stock price.

Moderna Stock Price in the Past



As Moderna went public in 2018, there is only 3 years' worth of data to analyse its past performance. The company went from zero product revenue and a net loss to billions in revenue in just a few months. In 2018, the year-open price was $18.60, while the year close price was $15.27, with an average price of $16.4338.

The following year saw some improvement in the performance on the stock exchange, with the year-open price at $15.33, whereas the year close price was $19.56, which was a 28.09% increase over 2018. The average price for 2019 was $18.1192.

It was in 2020 when things took a drastically positive turn for Moderna and its financials. Moderna was among the leading manufacturers of a COVID-19 vaccine. This propelled the biotech company into mass popularity, with its stock rising to $104.47 at year's end compared to only $19.23 when it started the year. This was an annual change of 434.10%, a game-changer for Moderna.

Moderna Stock Technical Analysis

When considering buying, selling or holding Moderna stock, it's essential to consider the most technical of indicators that determine the stock's status at any given time. These indicators can be studied by conducting a technical analysis of the stock.



The charts above present the overall summary of Moderna stock price comprising all the technical indicators (top) and the buy/sell condition determined by the oscillators (left) and moving averages (right). According to these charts, there is currently buying sentiment. The moving averages are also pointing towards buying Moderna stock right now, and the oscillators are painting the same picture, as well.

This can be attributed to the fact that vaccination is a vital and regularly discussed necessity in the world right now. Coupled with this are the new variants of the COVID-19 virus (Omicron being the latest of them all), which are making the vaccines a more important and attractive investment than ever.

As such, there is no selling pressure at the moment, and most, if not all, technical indicators paint a positive picture for Moderna shares.

Moderna Stock Forecast for 2022 by Experts

While the last two years have proved phenomenal for Moderna, investors are now starting to worry about future orders for the vaccine. Let's explore what the expert opinions regarding Moderna stock forecasts are.

Interestingly, many analysts think that COVID-19 will transition from being pandemic to endemic, with regular (perhaps annual) booster shots necessary for everyone. This means that the company would remain highly relevant, and its stocks would interest investors to a great extent, as well.

When evaluating the future of Moderna, most analysts consider two dimensions. The first is the longevity of the virus as well as the emergence of new variants. Any new variant, such as the current Omicron variant, makes Moderna attractive for investors as the entire world looks to Moderna and a few other biotech companies for a prompt solution.

On the other hand, experts also look at competition from other companies such as Pfizer and AstraZeneca since their rise in popularity could hurt the chances of Moderna's stock rising further.

With such market uncertainty regarding the pandemic and the relevance of vaccines, many experts are unable to suggest a number for Moderna's estimated future stock price.

Short-Term Moderna (MRNA) Price Prediction for 2022

Here are predictions from some of the most renowned traders and technical publications about the price of Moderna in 2022.

Wallet Investor

According to Wallet Investor, Moderna could end 2022 at a price of $379.241. estimates suggest bullish movement throughout the year, with the price constantly rising.

Long Forecast

Although Long Forecast has a similar view regarding Moderna's stock price, it does expect Moderna to perform far better than many other assets. It predicts that the year would start at a minimum of $299 and could end the year anywhere close to $428. If these figures seem too optimistic to you, remember that the Omicron variant has just emerged, and Moderna has already put out a vaccine that it claims works efficiently against the new variant.

Moderna Price Forecast for 2023-2025

While the pandemic's longevity and the need for vaccines are still being heavily studied and debated, Moderna stock predictions for 2023 to 2025 are extremely bright.

According to Wallet Investor, the price is expected to keep growing, although the rate at which it is likely to grow will fluctuate throughout the mentioned time period. In fact, Wallet Investor has forecasted that Moderna's price may go as high as $702.107 by the end of 2025.

Such confidence in the appreciation of the company can be attributed to the fact that the COVID-19 vaccination is still a significant health issue worldwide, and precautions against the Omicron variant are already being taken seriously.

Long-Term Moderna Stock Price Prediction 2026-2030

Making predictions so far ahead in time can be tricky because stock prices rise and drop quite often within a year for estimates more than 5 years out to be accurate. However, it's still important to make these estimates to potentially reduce the risk of any long-term investments.

According to CoinPriceForecast, Moderna stocks could hit a value of $1,348 by 2030, which is an upward change of 357% from the current price. Even for the previous years, the price is expected to rise gradually. The market sentiment is so positive for this company that analysts at Nasdaq are discussing the possibility of Moderna becoming a trillion-dollar company by 2030.

Conclusion

There is absolutely no doubt that Moderna's coronavirus vaccine made its stock a big pandemic winner. However, the question remains whether Moderna will be able to continue this run once the pandemic has subsided. And despite all the forecasts and expert opinions, its relevance in the industry beyond COVID-19 will eventually determine the future of its stock's performance.

If you're inexperienced in trading or simply want to try your hands at stocks CFDs before risking any real money, you can explore multiple options with a demo account at Libertex. Not only will it let you practice in a simulated environment, but it will also suggest expert strategies to you along the way.

[Libertex]

Ford (F) Stock Forecast

From its much-anticipated new line of electric trucks, the F-150 Lightning, to its partnership with an autonomous driving startup, Ford has major plans for 2022. As competitors faced continued shortages in November 2021, Ford's sales increased, and in December 2021, the company reported selling the highest number of vehicles in the US for three consecutive months.

Read on to find expert predictions for Ford's stock in 2022 and the company's potential future growth. We'll also briefly explain the factors that can impact F shares and discuss the historical performance of the automaker on the stock exchange before analysing the Ford stock forecast for the next few years.

About Ford (F) Stock

Founded by Henry Ford in June 1903, Ford Motor Company is an American multinational automobile manufacturer headquartered in Dearborn, Michigan, in the United States. The automaker sells commercial vehicles and automobiles under the Ford brand, while its luxury vehicles are sold under its luxury brand, Lincoln. To gauge how powerful and well-renowned this company is, consider the fact that Ford either owns or has previously owned, partially or fully, the following automobile brands: Troller, Aston Martin, Jiangling Motors, Jaguar, Land Rover and Volvo.

Ford is celebrated for introducing methods for large-scale manufacturing of vehicles and management of an industrial workforce. This was done using intelligently engineered manufacturing sequences that exemplify moving assembly lines. These methods have been viewed so highly across the globe that they have now come to represent the idea of Fordism.

As of 14 January 2022, Ford stock is worth $25.19. Listed on the New York Stock Exchange (NYSE), it has a market capitalisation of $100.6 billion.

What Affects Ford (F) Stock Price

While there are many reliable sources to get information regarding the past, current and expected performance of Ford on the stock exchange, just knowing these numbers is not enough. In order to develop a strong and well-calculated strategy for your trading or investment moves, it's essential to know the factors that affect the price of Ford's stock, and eventually, the Ford stock forecast.

At present, the notable production and sale of vehicles by the automotive maker can be quoted as the reason for growing investor confidence in Ford. Since the company has been thetop-selling US automaker for the past three months, the price of its shares has increased. This indicates that inventory is a key factor in determining market sentiment about Ford. That being said, the production and sale of vehicles by competitors can adversely affect F stock.

Another major factor driving the price of Ford in the future will be its electric vehicles. As the world increasingly turns towards electric cars, Ford is expected to benefit from its all-electric version of the F-150, the Ford Lightning, which is set to launch in spring 2022 and has already accumulated over 160,000 pre-orders.

Interest rates also impact the stock because consumers factor in the cost of financing, which eventually affects sales. In early December 2021, Ford's stock price was down about 3.9% due to the increased likelihood of higher interest rates.

Ford Stock Price in the Past

The past performance of Ford on the stock exchange is not, in any way, an indicator of its future performance. However, knowing how F shares have fared in the past few years can help make less risky and more knowledgeable decisions with your money when considering Ford stock predictions.

The chart below shows the prices of Ford common stock for the past 5 years.



As evident from the graph, the years 2020 and 2021 appear to be the most interesting for the company. While there were fluctuations in the prices even before 2020, it was this year when the prices severely dipped to a low of $4.24 due to the COVID-19 pandemic and its impact on the global supply chain and automotive manufacturing.

That being said, Ford exhibited remarkable recovery after this bearish movement and went on to achieve values it had not ever seen before. The highest price of $21.45 was recorded on 12 July 2021.

Apart from these, a few useful statistics about its performance in the last year are listed below:

- Ford's 52-week high of $21.49 occurred on 10 December 2021.
- Its 52-week low of $8.43 occurred on 4 January 2021.

Ford Stock Technical Analysis

According to the technical analysis conducted by TradingView, at the time of writing this article, Ford's stock is in a neutral position. The oscillators and the moving averages both indicate neutrality. While most oscillators, including the Relative Strength Index (RSI) and Bull Bear Power, are neutral, the moving averages show an interesting situation where half the indicators are pointing towards Buy while the rest are hinting at a Sell rating. The overall effect, however, is determined to be neutral.

This means that, at present, the technical analysis shows neither buying nor selling pressure, and those interested in this stock should either hold it if they already own it or wait before buying it. Conclusively, no bullish or bearish movements are expected in the near future.



When it comes to the end of December 2021 and the start of January 2022, the oscillators are suggesting slight selling pressure, but the moving averages are indicating a Strong Buy. Thus, the overall summary gives the green light to those interested in buying Ford stock in the next 30 days.

Ford Stock Forecast for 2022 by Experts

Before delving into Ford stock predictions for the upcoming few months or years, let's consider expert opinions and learn what industry analysts think F stock will be worth in the near future.

Brian Johnson

Citing tight inventories as one of the car price drivers, Barclays analyst Brian Johnson expects automakers — not auto suppliers — to achieve good margins from car sales in 2022. Hence, Johnson increased his target price for Ford stock in 2022 from $18 to $23, bringing in interested investors, too.

Colin Langan

The renowned Wells Fargo automotive and mobility analyst Colin Langan also raised his bank's price target for F - from $19 to $23. Among the reasons he cited for this move is the expected ease in supply chain issues that have hampered automobile production the past year.

Moreover, Ford's previously held a 12 percent stake in Rivian, an electric vehicle startup, and its share of Argo AI, a startup based on self-driving, autonomous cars, are also forecasted to attract investments worldwide.

Short-Term Ford (F) Price Prediction for 2022

As for Ford's current economic environment and performance, the following are among some of the most well-grounded Ford stock predictions for 2022.

Long Forecast

According to estimates by Long Forecast, the first quarter of 2022 isn't likely to bring any improvement in Ford shares. In fact, the price is predicted to slightly drop from its current value. However, bullish movement is expected in the remaining months of the year, with the price expected to go to a high of $25.97.

CoinPriceForecast

CoinPriceForecast has exhibited strong confidence in the earning potential of Ford in 2022. It has some of the most optimistic predictions for Ford's performance in FY22. It estimates that by the middle of the year, F shares of Ford could be worth $25.48, whereas the year could end with Ford stock price as high as $28.56.

Ford Price Forecast for 2023-2025

Analysis of the F stock forecast for 2023, 2024 and 2025 suggests that Ford stock will experience both bearish and bullish movements in the future. There is far too much fluctuation in the predictions, as estimated by Wallet Investor, for one to guess with any degree of confidence whether Ford stock will be higher, lower or nearly the same compared to its current price.

Long-Term Ford Stock Price Prediction for 2026-2030

With expectations such as Ford's annual electric vehicle sales to be close to 1.24 million units by fiscal year 2030, predictions place the expected price of Ford stock for 2026 between $57.43 and $93.66. According to AI Pickup, the period of 2026 to 2030 can see the price of Ford shares ranging from $43.29 to $45.97. Interestingly, this forecast is very conservative and does not expect Ford to bring in the kind of profits that most other traders, brokers and exchanges think it will.

While these predictions paint a very promising future for Ford in 2026 and beyond, be cognizant of the fact that a Ford stock forecast so far in advance might not be beneficial at all considering their volatile nature and dependence on a number of internal and external factors.

Conclusion

In light of the predictions and driving factors behind its price, experts estimate that Ford stock will increase in the future. Not only is global automotive manufacturing accelerating, but supply chain issues are also easing and will further improve in 2022. These, coupled with the fact that Ford plans to release new models of its vehicles and is actively participating in the electric vehicles and autonomous driving race, the prospects appear very bright for the company at the moment.

That being said, stock prices are more often than not characterised by volatility which must be taken into account when making any decision to trade or invest.

You can begin by using a simulated and controlled environment to test out different strategies and plans and observe how experts are handling their CFD portfolios. To get started, create a demo account at a trading platform Libertex, which is offering the aforementioned facilities.

[Libertex]

Technical analysis: what separates the pros from the schmoes

What is technical analysis?

In essence, technical analysis hinges on the study of past price movements and trends to predict future market developments. It first emerged as a tradition in 19th century Japan, where rice merchants used candlestick charts to anticipate price changes in their staple commodity. Fast forward to the present day, and it has become a must-have tool in the arsenal of virtually every serious day trader and even some long-term investors. Since its humble beginnings, technical analysis has developed significantly as a field and now comprises a variety of oscillators, patterns, trend indicators and more.

Proponents of technical analysis say it is the only research tool one needs to succeed as a trader or investor since the market 'prices in' all relevant fundamental news and developments anyway. Whatever your position on the debate, there's no denying that technical analysis is an extremely useful string to one's bow, especially when searching for entry and exit points. Today, we're going to look at some of the most popular in-chart indicators available on the Libertex platform and how to use them to your advantage!

Relative Strength Index

Let's start with perhaps the quintessential indicator for selecting when to open or close a position: the Relative Strength Index or RSI for short. This is a momentum indicator that shows whether a market is overbought or oversold at any given moment. J. Welles Wilder Jr's seminal indicator is displayed as an oscillator (a line graph that moves between two extremes), and its potential values range from 0 to 100. It's generally understood that any value below about 30 suggests that the market is oversold and a rise to the upside is close at hand. On the contrary, a reading above 70 typically indicates an overbought market, which would mean that a sell-off could be on the cards. To overlay the RSI on a chart in the Libertex platform, all you need to do is follow these simple steps:

First, enter full-screen mode on your chosen chart, then hover over the indicators tab as shown. After that, a dropdown menu should appear. Hover over the 'Oscillators' tab and then select 'Relative Strength Index' from the dropdown menu.



Once that's done, the RSI will appear at the bottom of the chart as shown below:



If we look at the first two red circles, we see that these low points on the RSI immediately precede significant moves to the upside. The last one marks where we stand currently, which would suggest that we are at or close to a local bottom.

Moving Average Convergence Divergence (MACD)

The MACD indicator is used to determine trend direction and, to a lesser extent, momentum. Beyond this, it can also provide a variety of different trade signals. Generally speaking, a security's price can be said to be in an upward phase any time the MACD is above zero. If the MACD is below zero, however, the instrument is considered to be in a bearish trend. Here's how to open it on the Libertex platform:



The indicator itself consists of two lines: the MACD line and the signal line, which moves more slowly. Should the MACD crosses below the signal line, this would indicate a falling price. If the MACD line crosses above the signal line, though, this means the price is on the rise. While the MACD can be used to pick entry points in the same way as the RSI, its consideration of actual price as opposed to just buying and selling means that it can be used in conjunction with other indicators like the RSI to assess whether a given trend is likely to continue or not.

To see an example of this in action, let's see that same TSLA chart again with the MACD overlaid below:



Look closely at the green circles. These represent points where the MACD and signal line cross. Notice how a significant move to the downside follows each crossover? Sometimes the downtrend has already begun, but picking up on the trend reversal early and closing out any long positions/opening short positions upon crossover would have undoubtedly saved/made you a decent amount of money.

Learn with Libertex

This was the first in a series of technical analysis guides that will help you make the most of the Libertex app's in-chart technical analysis tools. Tune in for a closer look at two more key indicators that all successful traders know and use to their advantage. In the meantime, try out some of these new techniques on your Libertex demo account and see for yourself how useful they can be in anticipating price movements.

[Libertex]

Alibaba (BABA) Stock Forecast

Alibaba is one of the world's largest online commerce companies. In 2013, it recorded $5.78 billion in sales during its 11.11 shopping event. The Chinese company is an international B2B platform that connects suppliers and buyers worldwide in one place. Just recently, Alibaba announced that the gross merchandise volume (GMV) from the 11-day sale reached up to 540.3 billion yuan or $84.54 billion.

Alibaba's stock has been rapidly fluctuating for some weeks now. We'll take a closer look into this and include the Alibaba stock forecast for 2022 and beyond.

About Alibaba (BABA) Stock

Alibaba Group Holding Limited or Alibaba is a giantChinese multinational technology company founded in June 1999. Since then, it's been connecting small-to-medium-sized businesses (SMBs) to professional business buyers. It's helped increase sales with their B2B optimised tools.

In 2014, its initial public offering (IPO) on the New York Stock Exchange raised up to $25 billion. This resulted in the company's market value reaching $231 billion, the largest IPO in world history by then. Recently, in 2020, it was included in the Top Five AI Companies.

Alibaba has three main sites: Taobao, Tmall and Alibaba.com. It offers millions of products under different categories like apparel, electronics, machinery, cloud, entertainment and more. Jack Ma and Joseph Tsai, the two founders of the company, are the two largest stakeholders.

Alibaba technology stock sustained solid growth for many years after its official IPO. It started with an initial $88 per share and trading at $92.70. At the time of writing (end of 2021), Alibaba's stock price is over $119.

What Affects the Alibaba (BABA) Stock Price

Here are some factors that can influence the price movement of BABA shares:

- Business restrictions
- An antitrust probe of the company from China's State Administration for Market Regulation (SAMR)
- Change in management and operations
- Investors/shareholders decisions
- Trade conflict
- Fines and restrictions
- Political pressure
- Company sales
- News and events

Alibaba Stock Price in the Past



We're starting from a low stock price in 2016 because the company faced a shroud of scandal and controversy. But Alibaba quickly rose again after Taobao crested 580 million active monthly users and Tmall hit 500 million monthly users.

From an all-time low stock price, Alibaba's value started to rise in 2018. This is because the market liked Alibaba's spending spree that year. In 2018, the company spent over $41.6 billion on product development, sales and marketing, general administration and the cost of revenue. Many analysts consider this to be disciplined spending.

It continued to rise in 2019, the same year that Jack Ma stepped down as the head of the company. Its mobile user base reached 1.1 billion in the same year, and revenue grew by 42%. Its workforce reached 86,000 global workers, and the company delivered 57 million packages a year. Because of all of this, the stock price increased robustly.



In 2020, the value declined slightly as the State Administration for Market Regulation (SAMR) fined the company in China. Alibaba had to pay a $2.82 billion fine and end its exclusive deals. SAMR also imposed additional fines against the company over previously unapproved acquisitions. These anti-competitive practices and challenges placed analysts' expectations of 30% sales growth in uncertainty.

Unfortunately, in 2021, the company's stock price began to drop after its big issues with financial regulators and the Chinese government. Some analysts think many will avoid the stock until these issues are resolved. But in August, there was a 22% rise in quarterly profit and a 46% jump in revenues to $31.9 billion. Then the stock dropped again on 10 November after Chinese regulators announced new draft anti-monopoly rules for platforms like Alibaba.

Alibaba Stock Technical Analysis



For a one-month timeframe, the technical analysis from Trading View showed that overall, BABA shares showed a sell trend. This used the most popular technical indicators — Moving Averages, Oscillators and Pivots. The stock shows a strong sell trend based on MAs, while the oscillators indicate buying movement.

The price is below its 5, 20 & 50-day exponential moving averages, and it's being strongly bearish, moving downwards. These results show that the stock isn't doing quite well in the market. That's why there's a strong sell recommendation.

Alibaba Stock Forecast for 2022 by Experts

Analysts have made their predictions for BABA's stock price in 2022. Forecasting makes use of historical and recent data as well as technical indicators and tools. However, not all Alibaba stock forecasts are the same. Here are some from experts:

CNN Business

Analysts from CNN Business offer a 12-month forecast for investors with expected prices of $302.90 as the highest price, $199.95 as the median and $140.05 as the lowest. Based on these amounts, they've predicted that it will go up next year compared to the current price of Alibaba stock. The consensus among 56 analysts from the firm indicates a buy recommendation for the stock.

Long Forecast

The Economy Forecast Agency from Long Forecast expects to begin January 2022 with $107 and end it with $102. However, this would mean that they expect the price to drop in early 2021. This drop would also seem to continue until September 2022. The largest drop would be in February 2022, the price decreasing by over 20% from its current price.

Luckily, they also predicted Alibaba to gain control and go up again starting October 2022. Based on their BABA stock forecast, 2022 will end with a 9.02% price increase.

Wall Street Zen

From 16 analysts in Wall Street Zen, the predicted prices are shown above. Their maximum price forecast is at $407 with a great 253.91% price increase while the minimum is $200, still 73.91% greater than BABA's current price. Based on these prices, it's clear that they expect only great things for the stock in 2022.

Panda Forecast

The predicted target prices are shown with arrows to indicate their movements relative to their recent price. In this regard, analysts from Panda Forecast expect to welcome the new year with a price increase. It will continue to increase until March, the end of the first quarter, and then slightly drop in April. Overall, there are more expected price increases compared to drops.

The monthly volatility is also indicated, with February being the most volatile month and July being the least. At the end of the year, the price is expected to reach up to $187 with almost 12% volatility.

Wallet Investor

Like most analysts, those from the Wallet Investor predict Alibaba's January price to be greater than its current price. Based on the forecast, January will have over $124 with a 3.18% price increase. However, like with most analysts again, this will drop in February, too.

Throughout the year, the price is expected to fluctuate. The biggest positive change would be in October 2022 and the lowest drop in November. Fortunately, the price is expected to increase before the year ends.

Alibaba Price Forecast for 2023-2025



It's predicted that Alibaba's price will increase in the following years, up to 2025. It started from a 43% increase from its current price in 2023, increasing up to 87% by 2025.

Long-TermAlibaba Stock Price Prediction 2026-2030



2026 is expected to start with a 117% increase in price to $234. The stock's price is then predicted to increase each year until ending 2030 with an over $300 market value.

Conclusion

Even if Alibaba has faced extreme challenges recently, Alibaba continues to show great potential. The positive Alibaba stock forecast of many analysts can support this. Moreover, Alibaba has a good record in the market and is a big company worldwide. Overall, the BABA stock would still be a good investment and trading asset. Please keep in mind that the stock market can be ruthless and react to world events very sharply.

If you're unsure, try using a demo account from Libertex. Not only can you invest in a controlled environment, but you can also use all the traditional trading tools and features and build your own portfolio. This way, you can practice CFD trading, investing, monitoring and analysing the market before entering real conditions.

[Libertex]

General Electric (GE) Stock Forecast

General Electric Company is an industrial business best known for power, aviation, financial services, renewable energy and healthcare. Its fame has increased through the awards it's won, such as Engineering Service Provider of the Year. It operates worldwide and has recently undergone a significant restructuring to offer more services.

In 2020, the company reported consolidated earnings on revenues of over $79 billion with over $5 billion from common shareholders. Just recently, in November 2021, it announced that it would split into three major companies. Where does that put future expected stock prices? Let's find out.

Overview: General Electric (GE) Stock

General Electric Co. is one of the oldest companies around, having been incorporated in 1892. The company emerged after the Thomson-Houston Company and the Edison General Electric Company merged. It started with Appliance and Lighting services.

Now, it operates as a finance, infrastructure and technology company worldwide. Its main expertise lies in the following segments:

- Aviation
- Capital
- Healthcare
- Power
- Renewable energy

As of 14 January 2022, its current stock price is $103.16.

Factors Affecting the General Electric (GE) Stock Price

Here are some factors that can influence GE stock exchange price:

- Workforce layoff
- Change in management or operations
- Investors sentiments
- Inflation
- Industry performance
- Announcement of dividends

General Electric Stock Price in the Past



The stock market price started low in the 1960s and 1970s. During these years, GE was a pioneer in laser light technology and medical imaging. Over the next few years, the price started to fluctuate more until it peaked during 2000. In August 2000, it reached a closing price of $480, making it the most valuable company in the world.

However, its price drastically dropped in 2008, when the company encountered a crisis. In 2001, Welch left the company as a $130 billion conglomerate. But in 2008, GE stock dropped 42%, with the capital financial segment being the main reason. Although Warren Buffet invested $3 billion to stabilise and counter this fall, the crisis didn't end.

The following year, the company had to cut its yearly dividend from $1.24 to $0.82 and fell lower in 2010. The price continued to fluctuate through the following years and didn't drop until 2019.



The company had a good year in 2019. H. Lawrence Culp, the new chairman and CEO of the company, made significant improvements and helped the company recover slightly. By the end of 2019, the stock was up at about 50%. He reduced the $55 billion debt to half in 2020. Culp also sold unproductive stakes and subsidiaries.

However, in 2020, the COVID-19 pandemic significantly affected the company's steady price increase from 2019. On 15 May 2020, the GE stock price dropped to about $44, its lowest in two decades. GE's Aviation unit was the most affected since it had to lay off 10%-25% of its workforce in 2020.

Fortunately, the company began to recover in 2021. The stock price started to increase again. It even reached up to three digits in March until May and continued to drop and rise slightly afterwards.

General Electric Stock Technical Analysis

GE stock moved past a buy point on 9 November 2021. According to the MarketSmith Chart analysis, the relative strength line for the stock is lagging again. It also earned an IBD Composite Rating of 34 out of 99 with an RS Rating of 32, which means it outperformed 32% of all stocks for the past year.



Using pivot points and different indices, here's a summarised technical analysis of NYSE:GE stock:

- A bullish alert on 17 December 2021, after a bearish swing on 16 December 2021.
- The stock is at a short-term and long-term downward trend based on Moving Averages.
- Bearish trend movement according to 200 DMA and Relative Strength Index.
- With a Neutral score from Oscillators and a Sell from MAs, the GE stock is experiencing slight selling pressure.
- Its strongest support and resistance levels are at 6, 13 and 104.

General Electric Stock Forecast for 2022 by Experts

Experts have done their own analysis on GE's performance for next year to create a GE stock price forecast. Although most of them predicted the stock price to increase in the following year, some say that it wouldn't happen so quickly. The one thing they have in common is that there'd be no massive drop in its price in 2022.

Coin Price Forecast

The forecasted stock price at the end of 2021 is $92.97. It'll then increase by 9% in early 2022, and its price is predicted to reach up to $95.86. In the second half of the year, $0.53 will be added, closing the year at $96.39.

Long Forecast

The Economy Forecast Agency predicts the GE stock price to end this year at $89. It's forecasted that the price will constantly decrease, peaking at a drop by 10.75% in February, not until September 2022, with a 3.23% increase. This would continue to go up until the end of the year with a $106 and 13.98% increase.

AI Pickup

According to Wall Street analysts, slight price growth is expected in January. After that, it'll continue to decline in the year's remaining months, dropping the highest in June 2022. Fortunately, the year will end with the price slightly increasing by 0.03% from its previous predicted price of $54.21.

LeoProphet

From LeoProphet's GE stock forecast, the price will increase rapidly but decrease as well in 2022. Its price will continue to go up until March, then drop until May, and continue to rise again. However, starting from November and until the end of the year, it's expected to drop to $97.57. It's also predicted that the highest market volatility will be experienced in February.

Wallet Investor

Wallet Investor analysts announced a prognosis for the GE stock price to have a stable upward movement in the next year. Although they only range from zero to about a 3% increase, no significant drop is expected. Not until December 2022 where the price will experience a 3.53% reduction.

Short-Term General Electric (GE) Price Prediction for 2022

Many analysts have stated their GE stock predictions in the coming year. Here's a summary of the forecasts for 2022 from five high ranking analysts based on Wall Street:



Most analysts gave a buy trading recommendation for the stock since they expect the price to go higher in 2022, indicated by the positive price change percentages. Most of them also predicted a three-digit stock price next year compared to the two-digit price now.

General Electric Price Forecast for 2023-2025



It's predicted that in the following years, from 2023 to 2025, GE stock price will continue to increase. This means that in 2025, the forecast increase is by 68% compared to the present price.

Long-Term General Electric Stock Price Prediction 2026-2030



Even in 2026, the price will continue to increase. This would continue until 2030 with a 155% increase from the current price. There's no hint of a drop in the forecast as theprice goes up throughout each year.

Conclusion

General Electric stock is starting to get its upward movement again after facing a crisis in 2008. Although they're in debt, it's clear that the company is taking measures to pay it off. The company is doing better now, even after the turbulent pandemic times.

Since it's an old company, this performance shows how the company is managed. Overall, it's a good choice for investment since most GE stock predictions show that its price is likely to increase. The stock is doing pretty well in the market, too, based on its share forecast. However, it's best to do your own research first and then try investing on your own.

If you're still uncertain, you can try a demo account from Libertex. Explore its various features designed to help you develop your skills for building your portfolio. With a demo account, you can practice trading stock CFDs first before you do so in real life.

[Libertex]

Technical analysis: harnessing Bollinger Bands

Technical analysis is a must-have skill for any self-respecting day trader. However, it is also an incredibly useful tool for long- and medium-term investors too. Following last week's look at the RSI and MACD oscillators, let's dive straight into some more technical analysis.

This time around, we'll be building on the trend oscillators studied a week ago with a close look at perhaps the most useful and versatile volatility indicator in existence: Bollinger Bands. Some of you may have never heard of them, but don't worry: by the end of this article, you'll know everything there is to know about these important indicators!

Bollinger Bands

Bollinger Bands were developed by renowned technical trader John Bollinger and consist of a pair of trendlines that are plotted two standard deviations (positively and negatively) away from the simple moving average (SMA) of a given security's price. Their purpose is to provide investors with a higher probability of properly identifying overbought or oversold conditions. This makes them a perfect confirmation tool to complement an analysis of the RSI or MACD.

The formula for calculating them is pretty complex, but luckily for us, the Libertex platform can calculate and automatically apply the bands, as well as additional oscillators expressing the width and percentage disparity between the upper and lower bands. Here's what the one-year Apple (AAPL) chart looks like with all three overlaid:



But how do they help us trade?

The established doctrine among traders is that the closer prices move to the upper band, the more overbought the market is. Conversely, prices moving towards the lower band signal oversold conditions. Beyond this, a widening of bands signals increased volatility, while a contraction is a sign of lower volatility. This is because standard deviation is itself a measure of volatility.

The major leading signal with Bollinger Bands is a phenomenon known as "The Squeeze". This is when the bands come closer together, which indicates decreasing volatility and the existence of potential opportunities for opening trades. On the other hand, a widening of the bands is seen as a sign of increasing volatility and — depending on what the RSI is indicating — is often interpreted as a signal to close out positions or reassess take-profit levels.

Let's take a look at the AAPL chart once more:



See the green circles? These indicate a sudden tightening of the bands. A short time after this, we see significant swings to the upside, which would indicate that the squeeze represents an optimum entry point for a long position.

What about when to sell?

This is a little trickier and requires a combination of indicators for any degree of certainty as to when a decline is imminent. Indeed, even John Bollinger himself states that his bands are not intended to be used as a standalone leading indicator and must be combined with several other technical analysis tools to provide reliable, actionable signals. Nonetheless, we will attempt to show their utility even when combined with just the RSI we looked at last week. Luckily, the Libertex in-app technical analysis suite makes this a breeze.

Simply go into full-screen mode on the chart and follow the instructions from last week to add the RSI (click on the indicators tab, hover over 'Oscillators' and select the RSI). Then, do the same again and add the Bollinger Bands as shown below:



Now, as we mentioned earlier: a widening of the bands is a good sign that market volatility is increasing and a fall could be on the cards. The problem is that these widenings are generally much more protracted and less clearly defined compared to the contractions. This means that we can potentially miss out on a lot of upside movement if we close out positions at the first sign of widening, as shown by the yellow circles below:



Notice how long the periods of widening (volatility) are? This is because the rising prices associated with the uptrend itself represent significant volatility compared to the trailing 20-day SMA, so it's hard to determine at what point the width represents a truly overbought market.

However, if we incorporate the RSI (peaks circled in blue) into our analysis, we see that these are much more precise as a leading indicator. By combining the two together (peak of the RSI and pronounced widening of Bollinger bands), we can predict future price declines much more accurately. This is why Bollinger himself recommends joint analysis using non-correlated tools such as the RSI and MACD.

Expand your knowledge with Libertex

Hopefully, you enjoyed this latest instalment in our technical analysis trading series. Given the interoperability of Bollinger's eponymous indicator with the key trend oscillators we looked at last week, you should now be able to refine your technical analysis skills further and generate even more accurate trading signals at home. If you're feeling confident in your abilities after these two tutorials, you could consider trying them out on a live position. For the more risk-averse, this week could be another great opportunity to test them out in your Demo account.

[Libertex]

AMC Stock Forecast

As the largest movie theatre chain in the world, AMC has been popular as a global investment option, offering its shareholders the opportunity to benefit from the $18 billion US theatre industry. Despite the hit the entire sector has taken due to COVID-19, AMC's shares are still soaring.

Learn what makes AMC stand out among its competitors, how its stock price is defined, AMC's past performance on the New York Stock Exchange and the price target consensus for 2022 by experts. After that, we'll provide an analysis of AMC's future.

About AMC Stock

Founded in 1920, AMC Entertainment Holdings, Inc. is an American multinational movie theatre chain and the largest movie theatre chain worldwide. Headquartered in Leawood, Kansas, in the United States, it has the largest share of the US movie theatre market.

The company is involved in the cinema industry, which it conducts through its subsidiaries. It does so by owning, operating and having interests in theatres. AMC operates through two segments:

- United States Markets, which focuses its operations specifically in New York, Washington D.C., Los Angeles, Chicago and Atlanta.
- International Markets, which involves activity in countries that include Germany, the United Kingdom, Ireland, Estonia, Spain, Sweden, Denmark, Finland, Lithuania and more.

AMC's stock ticker on the NYSE is AMC. As of 24 December 2021, its current share price is $20.57. It has an impressive market capitalisation of approximately $10 billion and has a volume of $49.59 million. The year range for the cost of one AMC share is $2.27 to $62.55. This extreme difference is partly due to the impact of the COVID-19 pandemic on the entertainment industry. Apart from this, the stock experienced a massive rally in mid-2021 as speculative trading began intensely owing to Reddit users.

What Affects AMC Stock Price?

The performance of AMC on the stock exchange depends on certain factors. While some of these have impacted AMC's stock price for decades, others are relatively and surprisingly new.

The regular factors include financing movies, producing films, legal and regulatory rules pertaining to theatre operations, supply chain issues and more.

At present, the ongoing COVID-19 pandemic is a major factor that can vastly move the price of AMC stock up or down. Since March 2020, when COVID-19 was declared a pandemic, the share prices have gone through many surges and dips. Thus, the revenue AMC can potentially bring in largely depends upon whether the situation with the virus will ease in the upcoming few months, allowing cinemas and theatres worldwide to operate at their full capacity. Similarly, growing trust in vaccination and approval of vaccines for children will also play a key role in this situation since movies for children can then be shown, as well.

These price indicators and other general economic factors are considered when analysts and industry experts create an AMC stock forecast.

AMC Stock Price in the Past

For most of its history, AMC's stock price has remained in the $15 to $35 bracket, as shown in the chart below.



- The lowest recorded price is $2.27, which occurred in April 2020 due to the complete closing down of cinemas and theatres worldwide owing to the COVID-19 pandemic.
- The highest recorded price is $62.55, which occurred in June 2021. This was after the cinemas were reopened after lockdowns were lifted across many parts of the world. It's interesting to note that although the virus brought the stock's price down drastically, the way it has increased since reopening has been astonishing, considering it has significantly soared past its previous high.
- An interesting and highly notable surge in the price of AMC stock was recorded in May 2021 when enthusiastic Reddit users encouraged doubling down on the stock. In fact, this wild movement even helped AMC surpass GameStop as the most popular stock among Reddit WallStreetBets forums.

As a result, shares of AMC saw a gain of 1,100% in 2021 alone.

While it helps to know how AMC has performed in the last few years, this information can't be used on its own for accurate AMC price prediction.

AMC Stock Technical Analysis

When making any AMC stock forecast, the most useful metrics are technical indicators. The technical analysis reveals whether the stock should be bought, sold or held at any given moment or during a certain period. The charts below summarise the technical analysis for AMC stock for the upcoming month.



The indicators point towards buying the stock. Only four of them suggest selling, while twice that amount recommend buying. The rest of the indicators are at a neutral position for this 30-day period.

The individual analysis by the oscillators and moving averages is different, however. The moving averages say that AMC stock is a Buy. For oscillators, except Momentum (10) and MACD Level (12, 26), all technical indicators are pointing towards neutral.

Therefore, according to this technical analysis, it appears that the next few weeks are good for buying AMC stock or perhaps even holding it. However, this doesn't seem like an appropriate time at all for selling any shares you own. That being said, technical analysis depends on multiple indicators whose values keep changing regularly. Thus, before finalising any decision, make sure you consider the latest technical analysis.

AMC Stock Forecast for 2022 by Experts

What a senior analyst or an industry expert thinks about future performance can largely affect investor confidence in AMC stock. Mentioned below are some experts and how they predict 2022 will turn out for the international theatre giant. For 2022, most experts don't believe that AMC will make a remarkable recovery from its pandemic-induced loss. Therefore, there are many sell ratings among Wall Street analysts.

Chad Beynon

Chad Beynon, an analyst at the investment banking company Macquarie Group, downgraded AMC in September 2021, expecting the company to exhibit bearish performance on the stock exchange in 2022. The price quoted by Beynon was also shocking for some; at $6, his prediction brings down the value of AMC stock nearly four and half times from its current price. Beynon justified this decision by the fact that the film industry hasn't been able to recover to the pre-pandemic levels at a pace that can help AMC bring in notable revenue.

Michael Pachter

Michael Pachter, an analyst at the privately held investment firm Wedbush Securities, also downgraded the stock price for AMC in 2022 and changed his rating from 'neutral' to 'underperform'. Patcher gave a target price of $7.50, a drastically lower value than the current price inching closer to $30.

Note that forecasts and expert predictions can be wrong and aren't a substitute for proper research and due diligence on your end.

Short-Term AMC Price Prediction for 2022

Despite significant volatility lingering in this industry due to the pandemic, various artificial intelligence-based models and statistical tools have led to some reliable AMC price predictions for 2022.

Coin Price Forecast

According to estimates by Coin Price Forecast, AMC is expected to recover very well from the bearish movements in 2020 and early 2021. The forecasted price for mid-year is $34.52, whereas the year-end price is quoted to be $41.22. This is an extremely positive outlook that suggests confidence in AMC and the fact that the global entertainment industry is set to move past the obstacles brought on by the virus.

Long Forecast

Another optimistic outlook for 2022 comes from Long Forecast. It has released a bullish outlook for the company, with share prices increasing in most months to eventually reach a possible maximum value of $41.50 in December. This also reinforces the growing confidence among investors and traders alike regarding the comeback of cinemas and theatres.

While experts have rather bleak expectations about AMC stocks in 2022, predictions from statistics and models are revealing a very promising picture for the future of this entertainment leader. Take this as yet another reason not to stand by any prediction or rating, and always do your own homework before using your money for AMC stock.

AMC Stock Forecast for 2023-2025

The farther a time period is from the present, the less reliable predictions for it get. That being said, knowing a price target for AMC stock in the upcoming few years can help mitigate risks associated with investing and trading and facilitate the development of a trading or investment strategy.

Wallet Investor has given shockingly high estimates for the price of AMC from 2023 to 2025. Starting from $46.464 in January 2023, it expects the stock to have a bullish movement. This constant increase in the value is forecasted to lead AMC stock to close at $99.177 in December 2025.

Analysts usually refrain from giving out estimates so far ahead in time, and statistical models usually come up with very near-sighted estimates. Therefore, the least risky manner of making any decision regarding AMC stock is to study the details yourself or consult a professional.

Long-Term AMC Stock Price Prediction for 2026-2030

Wall Street analysts don't offer any predictions for the long-term status of stocks, but they can be made using artificial intelligence-based models. Below are AMC price predictions for 2026-2030 by various reliable sources.

Coin Price Forecast

Coin Price Forecast predicts that the price of AMC will follow an uptrend from 2026 onwards. Although these estimates don't depict any significant surge in price, those who are planning to hold their existing shares for the long term might be able to benefit from the expected gradual increase.



Wallet Investor

Wallet Investor has shown far more confidence in the future performance and earnings of AMC, as per its predictions. While many estimates have quoted a price over $100 only in 2029 or 2030, Wallet Investor has forecasted AMC's stock status to reach around $116.191 by just the end of 2026.

Conclusion

At present, the most important factor investors and traders are analysing to determine if they should buy, sell or hold AMC stock is the future state of the leisure and entertainment industry in the US and across the world. This, in turn, depends upon the circumstances surrounding the pandemic, vaccination efficacy and speed of administration and government regulations. If unforeseen circumstances don't appear, the share price is expected to grow slowly.

Before making any trading decision, you can test your strategies and learn useful tricks in a controlled environment, such as the one provided by Libertex. Create a demo account and practice trading CFDs on numerous underlying assets from all over the world.