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Home » Education » Page 2

MACD Settings for Intraday Trading – Best Parameters for MACD

by Fxigor

In this article, we developed one test, created one intraday profitable strategy, and then varied the values of the MACD settings parameters in several combinations. We wanted to see what is the best MACD settings for intraday trading.
basic MACD settings in Metatrader

Standard MACD settings (12,26, 9) have the following parameters:

  • (12) – ‘Fast line’ or the 12 periods EMA (exponentially weighted average)
  • (26) – ‘Slow line’ or the 26 periods EMA
  • (9) –  ‘Signal line’ or  the 9 periods EMA

The Best MACD Settings for Intraday trading – Case Study Video is presented below:

 

Moving average convergence/ divergence or more commonly referred to as MACD for short, moving average convergence/divergence is an indicator for trading, created by Gerald and used for various stock price technical analysis types. It was developed in the last period of the 70s.

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MACD has been designed to help reveal the trend duration, momentum, direction, and stock price strength. The oscillator or the MACD indicator is a three-time series collection calculated with data from historical prices; it is typically the price of closing. The three series are the divergence series, a difference between the average and signal series. The other two are the signal series and the average series.

To use the MACD indicator correctly, use the MACD MT4 2 lines indicator.

The best MACD settings for intraday trading

The best MACD settings for intraday trading are default settings MACD parameters EMA 12, EMA 26, and EMA 9 based on forex.in.rs research on the M30 minute chart. The study was done on 9 MACD settings combinations. The best MACD settings for swing trading are default settings MACD parameters EMA 12, EMA 26, and EMA 9.

Macd settings for day trading analyzed the standard setting for MACD is the difference between the 12- and 26-period EMAs. Our research tried combinations for greater MACD sensitivity and tested a shorter short-term moving average and a longer long-term moving average. MACD(6,35,6) is more sensitive than MACD(12,26,9) and can be a better MACD setting for weekly charts. When traders use M5 or M15, or M30 chart time frames in day trading, the best performance is obtained using standard MACD settings for day trading (12,26,9).

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Signal Line Crossover

The signal line crossover of MACD shows that the acceleration direction is changing. The average velocity of the MACD line when it crosses zero indicates that the direction is being changed. You can read a review about the Two-line MACD indicator for mt4 and make a free download on our page: Download MACD Indicator with Two Lines for MT4.

How is the MACD Indicator Used for intraday trading or long-term trading?

The tool is used to identify moving averages, indicating whether a new trend is bearish or bullish. The main goal of trading is to find a new trend, where one will find the most money and have a piece of the pie.

MACD Chart


The MACD charts show three different numbers being used for the settings. The first number is for the periods and is used to calculate the faster-moving average.
The second number of periods is used for the slower moving average. Finally, the third number is for the number of bars, which would calculate the moving average and differentiate between the slower and faster moving averages.

Basic MACD settings

As an example, if one were to come across the default setting of the MACD parameters that are 12, 26, and 9, these would be interpreted as:
Fast EMA period: The 12 previous bars represent 12 of the faster-moving average.
Slow EMA Period: The 26 previous bars are represented by 26 of the slower moving average.
Signal SMA period: The 9 previous bars are represented by 9.

Vertical lines would be plotted and are referred to as a histogram. When it comes to MACD lines, there is a misconception. The 2 lines that get drawn do not reflect the price moving averages but differ in the moving averages between the moving averages.

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The original line would be smoothened when a slower moving average is plotted. Further, this helps provide one with a much more accurate line. The histogram would plot the difference between the slow and fast-moving average.
The divergence is when one notices the two moving averages moving separately. The histogram will become more significant since the faster-moving average would move away or diverge from the slower-moving average.
The histogram would get smaller as the moving average starts getting closer. This is referred to as convergence since the faster-moving average would get closer or converge to the slower-moving average. This is the entire process of the Moving Average Convergence / Divergence.

Now that you have understood what MACD does, it is time to know what it can do for you.

MACD for Slow and Fast Moving Averages

A new downtrend would be identified as the fast line crosses under the slow line. One could notice that the histogram would disappear temporarily as the lines crossed. It is due to the line difference when the cross is zero.
Furthermore, when the downtrend starts, the histogram gets more significant as the fast line diverges or moves away from the slow line. This is an indication of a definite trend. Let’s have a look at the examples.
Let’s look at an example for a better understanding.

Our MACD intraday settings using Expert Advisor tests

Indicators :
1) MACD with several settings
2) Channel (we used our indicator, but you can use any channel indicator, for example, the Donchian channel).
3) Important level indicator. Our indicator is based on previous highs and lows, but you can use Pivot points or Fib levels.

Rules :
We created several combinations and created BUY and SELL rules on 30 minutes chart :

BUY if we see a bullish MACD cross or zero line cross AND the price touch a significant level AND the price is in a bullish channel. Stop loss is the last important level swing. Target at the next level.

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SELL if we see a bearish MACD cross or zero line cross AND the price touch an important level AND the price is in a bearish channel. Stop loss is the last important level swing. Target at the next level.

In the first test, we used 30 minutes chart and basic MACD settings. Then we repeated several tests with different combinations :
macd intraday settings and profits. Our tests.

Important fact:
You can combine the moving average strategy with MACD. The best moving average crossover for intraday (or long-term strategies) is a combination of SMA10, SMA50, SMA100, and SMA200, but you need to change the chart time frame for each strategy. For the long-term strategy, you will use a combination of SMA10, SMA50, SMA100, and SMA200 on H4 or a daily or weekly chart. For intraday trading, you will use m30 or m15 or a 1-minute chart.

The best MACD settings for 5 minute chart

The best MACD settings for a 5-minute chart are parameters 24, 52, and 18. They showed 5% better performance than default settings 12,26,9.

The best MACD settings for 15 minute chart

The best MACD settings for a 15-minute chart are parameters 24, 52, and 18. However, this setting is only a few percent better in our case study than the default setting 12,26,9.

This setting is the best for small time frames. For example, the best MACD settings for a 2-minute chart or 1-minute chart will be higher periods than default settings. Higher periods analyze more number of minutes and give provide robust solutions to price volatility.

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The best MACD settings for 30 minute chart

The best MACD settings for the 30-minute chart are default settings parameters 12, 26, and 9. Our research didn’t find any statistically important significance when comparing default settings and varied value combinations.

The best MACD settings for 1-hour chart

The best MACD settings for the 30-minute chart are parameters 24, 52, and 18, and default settings parameters 12, 26, and 9. Both settings showed similar results. However, we recommend standard settings for 1-hour chart trading.

Trade with the help of MACD

As there are 2 moving averages with different speeds, it would be quicker to react to the price movement for the faster one than the slower one. Whenever a new trend is discovered, it would be the last line to be the first to react, and it would eventually cross to the slower line. When the fast line begins to diverge as the crossover starts, it will move away from the slower line, and a new trend would be indicated as being formed.

Crossover Example of MACD

MACD has a drawback, which is that they tend to lag when it comes to price since it is just the historical price average. One would expect a bit of lag as the MACD represents the moving averages of others, and it is, as such, smoothed out by one another. Despite this, it is still one of the practical tools most traders use.

Indication of Changes in Stock or Forex Trends

IN the MACD series, with the help of different periods, EMAs can indicate the changes in stock trends. Usually, the fast EMA would respond much quicker than a slow one. Subtle shifts can be revealed in the stock trends with the help of the divergence series.

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Mathematical Interpretation

The MACD is a measure filtered by the price, which derives the input regarding signal processing time. Velocity is the term for derivate as used in technical stock analysis. It would estimate the derivatives just like how they had been calculated. The difference in the time constants would be discovered using filtering by the 2 low-pass filters.

Just as it would have been filtered by an EMA of a single low pass exponential filter, MACD can be seen to approximate the derivative through calculation. The time constant would equal the sum of two filters’ time constants, which one would multiply by a similar gain. The MACD derivative would be estimated through the approximate filtering of the equivalent of an EMA filter of low pass.

Furthermore, the average series can also be considered a derivative estimate, for further smoothing would be done by the additional low-pass filter. The difference between the intermediate series and the MACD serried would represent a second price measure connected to the time. The estimate would have an additional gain factor equal to the signal’s filter constant and additional lag.

Classification

MACD could be classified as an APO (absolute price oscillator) as it does not deal with percentage changes but with moving averages of the actual prices. PPO or a percentage price oscillator would compute the difference of 2 moving averages of the price divided by a longer moving average.
The PPO will calculate the changes relative to price, and the APO will show more minor levels of lowered price securities and greater levels of the higher price securities. When one compares the oscillator values of various securities, a PPO would be preferred, especially for different prices.
The DPO (Detrended Price Oscillator), another member of the price oscillator family, ignores long-term trends. Instead, short-term patterns are emphasized.

Trading Interpretation

EMAs highlight the current changes in stock prices. The MACD can gauge the changes in stock trends by comparing the different lengths of the EMAs. The difference between the average claimed by the MACD and the MACD series helps reveal the shifts in the direction and the strength of the stock trends. It might even be necessary to correlate the indicators of the MACD to signals such as the RSI power.
Some traders would attribute importance to the MACD line that crosses the 0 axes and the MACD line that crosses the signal line. The importance is also due to the disagreements between the different lines, the MACD line, and the stock price.

Signal-Line Crossover in our tests

It happens when the average lines and the MACD cross, meaning that the divergence would change its sign. The interpretation of this would be that it would be recommended to buy as long as the MACD line crosses over the average line. These events indicate a trend in which the stock would accelerate towards the crossover.

False Signals in our tests

It is possible for there to be false signals, just like any other forecasting algorithm. It would be prudent to apply filters to the signal line crossovers. Analysts use different approaches to find the right results. We chose our trading rules. You can make any test using its strategy. Each strategy will have false signals.

Thoughts

We think that the best success we can get is using standard basic MACD intraday settings because most “big dog” traders and institutions use these settings. Our test got similar results, but basic settings made the best results.

Filed Under: Forex strategy, Indicators

How Banks Trade Forex? – Smart Money Concept Example

by Fxigor

Banks in this century are changed. Because of digital transformation and open banking strategy (opening up consumers’ financial data allowing third-party payment services to access banking transactions) banks have more liquidity than ever before. This liquidity gives an opportunity for banks to trade more on financial markets.

Recently I had a podcast interview with Bryan Mason, a former trader in large banks, and our topic was “Be a successful trader with forex bank trading strategy.” Using theory from books and this interview, we will try to answer the question:

How do big banks trade forex?

The standard bank forex trading strategy is based on fundamental analysis, price accumulation, manipulation, and distribution. Most bank traders try to enter the trade after the false breakout and manipulation stage. Usually, bank traders make less than three positions per week and don’t have sophisticated trading systems.

Banks usually use 80% fundamental analysis and 20% technical analysis. In 20% technical analysis, there are not a lot of indicators. Their technical analysis is based on price levels.

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Before we analyze bank strategy, you should check the free Financial Markets course created by Robert Shiller, a Yale professor.  Using this free course, you can learn about banks and financial markets.

 

What is the forex bank trading strategy?

The Forex Bank Trading Strategy is designed to identify price levels (manipulation points) based on supply and demand areas. Banks usually enter into trades during consolidation times, and they need liquidity in the market to enter into positions.

 

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This article describes something different. Describe the bank traders’ approach. If you hurry and can not read whole articles, see the “Most common forex trading strategy” chapter for details.

Do banks trade forex?

Banks manage forex transactions for clients and trade forex from their trading desks, primarily using fundamental analysis and long trade positions. Banks make profits trading forex in two different ways. When a bank act as a dealer for clients, a bank generates profit from the bid-ask spread. When the bank trades forex as a speculator, the bank creates profit on currency fluctuations (the same as retail traders). 

Forex big banks (banks that trade forex frequently)

RankNameMarket share
1United States JP Morgan9.81%
2Germany Deutsche Bank8.41%
3United States Citi7.87%
4United Kingdom XTX Markets7.22%
5Switzerland UBS6.63%
6United States State Street Corporation5.50%
7United States HCTech5.28%
8United Kingdom HSBC4.93%
9United States Bank of America Merrill Lynch4.63%
10United States Goldman Sachs4.50%

Top 10 investment banks that trade forex

But bank traders have tremendous knowledge about fundamental analysis and use daily, weekly, and monthly charts mostly in their strategies. Moreover, they are primarily long-term traders because fundamental analysis and economic reports can influence the market days and weeks later.

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How do big banks manipulate the forex market?

Big banks manipulate the forex market because they have massive positions, create liquidity, and almost 80% of their volume. Banks trade for clients and for themselves too. Banks drive the markets in 3 phases: Accumulation, Distribution, and Manipulation. By Dow’s theory, the accumulation phase starts when the big investors ( institutions) usually enter their positions. The manipulation phase is a false breakout phase. Finally, in the distribution phase, markets follow a big trend. Of course, these phases are theoretical.

 

Bank trading strategy example:

For example, let us replicate one simple bank trading strategy. The OECD Purchasing Power Parity figure represents a way to assess each currency’s fair value versus USD in the month of publishing. Banks can use monthly CPI and exchange rate changes to create a fair PPP value for the month before the current month.

Buy trade:
Go long three currencies that are the most undervalued (lowest PPP fair value figure)

Sell trade:
Go short the three most overvalued currencies (highest PPP fair value figure).

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Then, every month, banks can rebalance and remove currencies that are not undervalued or overvalued.

What is the smart money concept?

The smart money concept represents institutional forex trading strategies based on a fundamental approach, long-term positions, and three important trading phases principle. Forex smart money concept represents bank trading strategy based on determining accumulation, manipulation, and distribution trading phase.

Let’s start this article with smart money. This term is widely used to describe the most significant market participants. Please note that these participants have an extremely crucial and substantial part of the market. What’s more, these market participants’ positions can be neither closed nor opened in a single order without spiking the overall market. For your reference, here’s a list of smart money or largest market participants — Hedge Funds, insurance companies, most significant banks, massive global companies, prop firms, and speculative traders.

The banks indeed hold a vital position in the market on this list. However, kindly note that they primarily act as a market maker. It’s also true that these banks have a speculative position, but the essential purpose of these banks is all about market-making. These banks drive the market mostly in supply and demand as the primary market makers.

Keynote at a glance: Smart money is a term to define the most extensive market participants. Smart money indeed has a strong position and influence in the market. Banks are considered one of the prominent participants in the market making. Although they hold a speculative position, their primary responsibility lies in the market making.

The forex market, or foreign exchange, is the largest global financial market. As per a Triennial Central Bank Survey conducted in 2016, forex trading far surpasses the stock market. Its daily transactions average $5.1 trillion, compared to $84 billion of equity volume globally. The forex market also features digital sites that run the currency exchange trade and has multiple distinctive qualities that new traders get surprisingly fascinated by. We will take you into the introductory forex phase to cover how and why traders find themselves progressively more attracted to forex trade.

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Whether you call it forex, currency trading, or foreign exchange, a decentralized global marketing system brings the world’s currencies to trade. The exchange rate price paid to exchange one currency for another drives the forex market.

The official global currencies surpass 100 in number. However, the U.S. dollar, euro, British pound, and Japanese yen are the most used in international forex trade and payment marketplaces. Apart from these currencies, other relatively popular ones are the Swiss franc, Australian, New Zealand, the Canadian dollar, etc.

Currency trade can be conducted via spot transactions, swaps, forwards, and options contracts with currency as the primary instrument. Currency trading is also on the list among the businesses that operate 24 hours every five days worldwide.

Before we analyze bank trading strategy, we need to know :

Who Trades Forex?

Forex is a market that features many players and a variety of players.

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  • Banks

The interbank market holds the first position regarding the trade’s highest currency volume. This avenue comprises all banks sizes to trade currency and uses electronic networks. However, big banks are the largest in the significant percentage of currency volume in exchange trade. This is because banks enable forex trade for their clients and handle speculative trades on bank trading desks alongside their usual banking business.

When banks play the role of dealers for customers, representing the bank’s profits, these currency trade speculations conducted by banks are a strategy to take advantage of currency fluctuations for profit.

  • Central Banks

Central and government-owned banks play a significant role in the foreign exchange market. Central banks’ policies on operations and interest rates on the open markets greatly influence currency rates. Also, central banks fix the rates or price of their nation’s currency on forex.

When the central bank takes any action in the F.X. market, it is to stabilize or raise the competitiveness of its nation’s economy. Like speculators, Central banks may carry out specific currency interventions to appreciate or depreciate their currency. For instance, any country’s central bank can decide to render its currency weak by creating additional supplies in lengthy deflationary trends for foreign currency to be purchased with it. When this happens, its domestic currency is weakened effectively, leading to more competitive exports in the international market.

It is with these strategies that central banks calm inflation. Such action also forms long-term indicators for those trading in forex.

  • Investment Managers &Hedge Funds

When it comes to the most significant Forex market player collection, banks, central banks, portfolio managers, hedge funds, and pooled funds come second in position. Investment Managers conduct trade currency transactions for significantly large accounts like pension funds, endowments, and foundations.

Investment managers with a global portfolio buy and conduct currency sales to trade foreign securities. These investment managers can also execute speculative F.X. trades; meanwhile, certain hedge funds that execute speculative currency trades have their investment strategies.

These are inflation-calming strategies that central banks use. This also presents forex traders with long-term indicators.

  • Corporations

Firms in the import and export businesses also engage in forex trade to execute payments for their goods and services. For example, let’s take an American solar panel firm that imports German components and then sells the finished products to Japan. At the end of the cell, the firm’s Japanese yen has been converted to U.S. dollars. The American firm must also exchange U.S. dollars for euros to buy more German Components.

Companies engage in forex trade to evade the risk that comes with the translation of foreign currencies. So, for example, the same American firm might purchase euros from the spot market or engage in a currency swap agreement to receive dollars before buying components from this German company, which reduces exposure to foreign currency risks.

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  • Individual Investors

Retail investors make a low volume of foreign currency trades compared with financial institutions or firms. Retail investors focus on the following fundamentals; inflation rates, monetary policy, and parity in interest rates. Expectations. They also considered chemical factors such as support, technical indicators, resistance, and price patterns.

The way business shapes Forex trading.

Collaboration among Forex traders makes the market highly liquid and plays a significant role in the global market. Moreover, the fluctuation of exchange rates impacts inflation and each country’s corporate earnings and balance payments account.

When countries with higher-yielding interest rates start dwindling toward those with lower-yielding, it will carry trade unwinding. Then investors sell the higher-profit investments they have. For example, suppose the yen takes trade unwinds. In that case, it can result in big Japanese financial institutions and investors moving their currency back to Japan, provided they have substantial foreign holdings. This is because of the tightening of the spread between domestic and foreign yields. This strategy leads to a considerable reduction in equity prices worldwide.

Forex remains the world’s largest market for a reason. It endows central banks, retail investors, and everyone else to take advantage of currency fluctuations that characterize the global economy. Moreover, trading and hedging currencies involve many strategies like carrying trade, which presents forex players’ impact on the worldwide economy.

There are varying reasons to engage in forex trading. Whether it is speculative trades that banks carry out, hedge funds, financial institutions, or individual investors, their sole motivation is profit. With the monetary policies, rare currency interventions, and exchange regime setting, central banks always have robust control of the forex market.

Understanding who trades in forex and why it is essential for investors.

Before becoming a successful trader, it’s essential to determine the forex bank trading strategy’s nitty-gritty. More precisely, it’s a trading setup primarily designed to identify where the most significant market participants will enter/exit their respective positions based on the probable supply and demand areas.

Also, the top ten banks control more than 60% of daily forex market volume. Since these top ten banks are considered smart money, tracking them is vital for determining the overall trade success. Kindly note that tracking smart money is the foundation of any forex bank trading strategy. Thus, as a successful trader, you must check where the smart money moves in and out in the market. You also need to find out where the smart money is getting traded. With all these details, you will make a profitable trading decision.

Yes, there are different rules and strategies present in the trading market. However, we can’t control all of these rules and strategies for sure! Since we cannot manage these strategies, we will learn smart money’s trading strategy, i.e., megabanks. Please note that these banks follow a specific business model. Understanding this business model is essential as it will help you achieve consistent results quickly! This business model is based on a three-step process. If you want more details about this three-step process, please look at the following sections for more information.

Keynote at a glance: Understanding the forex bank trading strategy is very important. It’s primarily based on their business model. The business model follows a three-step process: accumulation, manipulation, and distribution.

Critical steps for the ultimate trading success

In theory, the forex bank trading strategy is based on a three-step process. We will discuss the details of these three individual steps in the following sections. But, before that, all you will now need is to understand a key fact. In every transaction in the market, there are two primary participants, i.e., the buyer and seller. When you are trying to buy something from the market, someone must try to sell it to you. Similarly, when looking forward to something on sale, you must be willing to buy it yourself. Thus, buying and selling are the two counterparts in every transaction in the market.

The same thing applies true for smart money as well. Therefore, we will need to track and trace the areas where the smart money is most likely buying and selling their shares/trades. Now, let’s give you a good example: please consider that smart money is buying a considerable portion of trades in the EURUSD market. But, at the same time, they should have an equal amount of selling pressure based on the rule that’s discussed above.

What is the forex smart money concept?

Forex smart money concept represents bank trading strategy based on determining accumulation, manipulation, and distribution trading phase. Usually, a smart money bank trading strategy’s main characteristics are medium and long-term positions after the manipulation phase.

 

Step 1: Accumulation Bank Trading Strategy Phase

In the forex bank trading strategy, accumulation plays a vital role. The exciting part is that it’s even considered one of the essential factors for successful trading. Unfortunately, most people/traders consider this strategy vague and meaningless, and they never give enough focus or attention to it. However, you must understand this strategy accurately to be a successful trader.

Your goal should be to track and find out the areas where, when, and how the smart money, i.e., banks, are planning to enter. To be more precise, you need to find their accumulating secret cautiously. You know when smart money will most likely enter the market, and their respective positions will be your key to success. Suppose you can identify and find out the areas/positions that smart money is accumulating. In that case, you can also specify the directions where the market will most probably move in the future. When you have an accurate idea of where the market will be moving next, it will benefit a profitable trading strategy.

Step 2: Manipulation Bank Trading Strategy Phase

This is the second step that comes after a successful accumulation. Market manipulation is quite a complex concept. You will still be urged to understand this strategy minutely to trade successfully despite the complexity. For example, when you just wait to enter a respective market area, you will soon notice the market moves in the opposite direction. That’s known as market manipulation, which is a false push. After a considerable accumulation period, s short-term wrong push or market manipulation period must be present in every market.

As mentioned, when the “megabanks” are trying to enter or accumulate the market, they will also create selling pressure. More precisely, they will drive and manipulate the market to sell off their stuff after a considerable accumulation. This is a short-term manipulation period where the market trend may move differently. It may appear that the market is behaving against you during this time! But, you will need to be smart and cautious at this point. This short-term manipulation gives you an extraordinary hint about a possible accumulation when the market trend will possibly go up.

If you can recall any significant market move before, you will surely notice a tight range-bound period known as accumulation. After that phase, there will be a short period of false push in the opposite/different market trend direction, known as manipulation.

Step 3: Distribution Bank Trading Strategy Phase

After the megabanks have accumulated a position in the market, there will be a period of false push or market manipulation. Many forex traders may consider this market manipulation period at the wrong time. But, if you can carefully visualize and analyze the market, you can avoid being a pawn of market manipulation. You can instead make a profit out of it. After the phases of accumulation and manipulation, there is a distribution phase of the market. This is when the banks will attempt to push the price of the market area. Finding the market’s distribution phase is also tricky, and it closely depends on its previous two steps, i.e., accumulation and manipulation.

Megabanks play a vital role in the overall market. As a result, it’s paramount to carefully observe and analyze their moves so that you can be successful in trading. To study their movements, you must carefully follow three steps, i.e., accumulation, manipulation, and distribution. Before any significant market moves, these three steps above are bound to happen. Therefore, as an ambitious trader, you must closely watch these three steps. In this way, you should determine the market’s possible time, volume, and position and then make your trading decision accordingly for lucrative profits.

Most common forex trading strategy – example, how to do big banks trade forex

Step 1. Accumulation Example.

As we said, accumulation is the first step of the market in the bank trading system. Smart money trading without accumulation may not allow banks to take any position in any currency market. During this first phase, smart money accumulation must be identified when looking for a market setup. There is no alternative option that smart money can enter the market other than through this accumulation period. Before moving to the next phase, we need to see an hour of sideways accumulation. This stage is critical for the trade setup since it is not advisable for the smart money to spike the market because this may give away what they had already accumulated. During the accumulation stage, smart money can achieve a better total entry price by keeping the cost relatively stable and entering overtime.
In this example, we have bad economic news for EURUSD see :

Step 2. Manipulation Example.

In May, we see a bullish market push. No economic impact on the price to go bullish.
Forex traders feel insecure during this stage since they feel it is wrong to enter the market. Many traders experience market changes that seem to move in the worst direction, but that may not be the case since this stage is inevitable; it is also crucial in the product market. This point is what we term the manipulation stage. This forex manipulation stage always comes immediately after the initial accumulation stage. This is a stop-run stage before moving to the final stage, i.e., market trend, mainly when operating on a given consistency.

The manipulation stage is crucial to monitoring smart money regardless of being termed a” false push” because of the market conditions coming towards the end of the accumulation stage. These are two existing accumulations of wrong push are;

Bullish. This is a false push beyond the low of the actual accumulation period, and this means that the short-term period is beginning since the smart money seems to have been buying into the real market.

Step 3. Forex Market Trend Example.

The forex market trend is the final phase in the smart money cycle. In this stage, the market experience a very aggressive experience in the short run.

These being the last strategy in smart money forex trading, it is the final step that each retailer hopes will be enjoyable and a mark of the business’s peak. However, the truth is that every stage is essential, especially when a visionary trader is experiencing the manipulation stage, since this is the crucial stage to distinguish determined retailers/traders from others.
Bank trading strategy phase - trend trading distribution

Bank traders SELL after a short-time bullish trend !!!!

What time frame does smart money use?

A smart money strategy is created for more extensive time frames such as weekly and monthly. This strategy is part of position trading strategies where traders hold positions for several weeks or months.

What time do banks trade forex?

Banks trade forex most frequently after the daily opening range (half an hour after market opening) and during the high liquidity when market trading sessions overlap. For example, EURUSD’s most frequent trades are after the US market opens when EU banks working hours overlap with US banks working hours.

However, banks trade long-term positions, and daily trading hours do not significantly impact.

Forex trading needs severe analysis and more research on new and productive ways for a unique and profitable trade. Forex learners should invest more time learning different trading strategies to bring a difference in the outcome. Unfortunately, most traders have dropped the trading business following discouraging expectations. Still, the truth behind this is that most traders don’t spend their time researching the trade’s different strategies.

Also, traders should analyze strategies, whether predictive or reactive. They need to trade for a given period, say almost a year, to see if it is productive or not, then choose the right strategy that can work.

Predictive Vs. Reactive strategies.

The basic understanding is about relating the trading activities with the nature of being reactive. This means that the trading software will start producing buy signals, and the falling trade market indicates the sell signals when the market rises. Following the rise in the market will lead to more buying pressure while falling in the market induces selling pressure.

Almost every primary strategy used in trading is reactive, so smart money automatically identifies how to convince you to buy. Also, they know how to direct you towards selling. This is why traders often talk about the trading market that seems to be experiencing a tremendous change in buying or selling once they enter.

The quite uncertain thing about this scenario is that smart money is the only source of information and the actual information is the most potent fact we require. Still, we will be successful if we are lenient to them and trade as they need. The frequent price manipulation perfectly reflects how far they have accumulated and the desired direction to control the price.

Suppose you focus on how large the market moved before deducing the vast majority of the significant moves. In that case, you will realize a tight and the actual accumulation followed by manipulation in the other direction of the market trend.

Trade forex, like the banks, means a lot of fundamental analysis.

As more and more people show an increased interest in trading forex, intuitional entities like banks are equally active in forex trade. Indeed, they are likely to be engaged more because of money, power, and quality think-tank. Further, they can research the market themselves and make sound decisions. Yet, it’s not as easy as it reads. So, we’ll discuss here how banks trade forex. Banks execute their trading based on a set of valuable practical data. And, there’s hardly any other consideration while trading forex.

The extent of banks’ forex share

Thanks to their electronic networks, banks are among the most significant participants in forex trading. Moreover, the largest ones in the economy take the lion’s share in forex trade. As a result, banks play a critical role in influencing the volume of forex to affect the trends of markets.

Banks focus on a few criteria.

When banks are active in the market, they make up the market. No other entity in the market can perform as competently as banks. First, they make all the decisions based on fundamental and technical analysis of the pattern that happens in the market. Then, they make the decision superfast.

Banks focus on the actual parameters. There is no place for human emotions to influence investment decisions n forex trade. Instead, they focus on price and fundamentals. This enables them to sound judgments.

Banks’ forex trading behavior is solely influenced by fundamentals that affect economic decisions. Several factors influence the market trend and hence the direction of forex trade. As many factors are involved, it’s hard to accurately say which factor/s were/were responsible for bringing out the market change.

Fundamental tendencies in the market are highly complex, and it takes a long time to come – years to get perfections in analyzing the market. Besides commercial banks, central banks also take part in forex markets. According to the country’s law, they’re vested with taking care of the whole forex market in the economy they represent.

A large volume of forex

The most important factors that influence trade are two. First, you must have a ground understanding of how the fundamental analysis works. Second, you must also thoroughly grasp how the data releases influence the market.
The second aspect is how you should act (execute) without being influenced by any external factor and solely with market data with razor-sharp precision. The economic data that come out are the most influential in forex markets.

Central banks formulate their monetary and credit policies to accommodate their economy based on economic data. Thus, if you abide by the data releases and start treading accordingly, you can understand what will happen to the central bank’s forex policy and build your capital base.

Important facts

Each month not less than seven significant releases of data happen.

The number of countries that have made the market are the leading global forex pairs is eight. And these eight countries add the total turnover of seven main currencies.

The seven currency pairs include the Euro/Dollar pair (EUR/USD), the British Pound Sterling/U.S. Dollar (GBP/USD), the Dollar/Japanese Yen (USD/JPY), the Australian Dollar/U.S. Dollar (AUD/USD), the New Zealand Dollar/U.S. Dollar (NZD/USD), the U.S. Dollar/Canadian Dollar (USD/CAD), and the U.S. Dollar/Swiss Franc (USD/CHF).

Every month there are quite a few trading opportunities in the forex market. This is clear from these facts:

Every month you get not less than 56 opportunities in forex trading. However, when it comes to the number of trading days, it is 20.

It’s, therefore, vital that you should not do things hurriedly. You should gain patience and closely observe the trends in the market. You should look for the best trade opportunity.

Have a well-thought-out capital management

To bring out the maximum amount, it’s essential to understand system capital management. The capital system is critical because it brings you the necessary experience to judge the market’s quality and make decisions accordingly.

Why is a sound capital management system essential?

It’s essential to formulate and execute an authoritarian system of capital management that addresses risks concerning capital controls, the ratio of risk to reward, and the whole trade plan – the values at exit and entry. When you make the trade in this manner, the most important thing you should do is look for entry levels.

Such a sound capital management system will mitigate the stress and let s you reflect on the trade for the whole day, for which you will not have to spend hours monitoring the market.

How does the actual trade go on?

Many traders at various banks keep moving around the room to witness the deals and keep moving to the other traders. Alternatively, they take a short break and go out with the brokers. As a result, they are never at the computer for over a few hours. We advise you to take a similar approach. You can move forward if you comprehend the markets’ fundamental and technical aspects and have a complete professional capital management system.

How do trade like the big banks?

To trade like the big banks, you need to be ready to hold a position for several weeks or months as a position trader, analyze macroeconomic data, and monitor critical price levels in the trend distribution phase.

Once you are clear with capital management, market fundamentals, and the like, you need to understand simple strategies to apply your knowledge.

Conclusion

According to current market definitions, the smart money is the actual source or the cash invested by experienced investors, with the collective force of a certain amount of money that can change the market patterns. In this case, the central bank is the force behind the smart money, while the rest respond to any market trend.
So we can start trading like banks, to think long term.

Talking about banks as one of the main aspects of the smart money that controls most daily market volumes, other subsidiary banks act as the market makers for several types of traders, including some mentioned above. Of course, the banks play a significant role in controlling the daily volume, but many traders trade daily, and they are the basis of daily market making but not speculations. This strategic-based information is provided to educate traders on important tips in smart trading. It also helps teach banks the role of primary market makers and direct traders in learning from existing market trends without complicating trading strategies.

This is the process of finding out the strategies used by prominent market participants, especially by devising trading setups designed to find likely areas of demand and supply. This process is sometimes referred to as manipulative points.
It may be easy for a retailer to find the likely point where smart money traders buy and sell. Still, the difficulty arises due to the issues about the financing capability to drive market forces. The central banks continuously track the paths to which smart money is waving since they are among the able market participants. The latter can successfully drive the market forces and alter the smart money operations by introducing certain trading decisions.

The only option retail traders dealing with forex trade can follow the market trends and the rules set by prominent market participants to achieve consistent results rather than introducing their rules in the market and losing their chances of success.

There are no shortcuts or gimmicks to help you in the forex trade. No system of indicators exists similar to the market. You must understand how the leading bankers in trade look into the market. You will succeed in the forex trade if you gain in these aspects.

Filed Under: Education

Calculate Crude Oil Lot Size – How to Read Oil Pips?

by Fxigor

A recent article showed how oil trading works and how to calculate gold pips. But let us start from the beginning.

Crude Oil Profit Calculator – USOIL pip calculator

What is Crude Oil?

Crude oil represents a natural fossil,  unrefined petroleum product composed of hydrocarbon deposits and other organic materials. Crude oil can be refined to produce usable gasoline, diesel, and various other petrochemicals. The most famous types of crude oils are WTI Crude Oil and Brent Crude Oil.

The difference between Brent crude and WTI crude oil is that WTI originates from U.S. oil fields, and Brent Crude originates from oil fields in the North Sea. Usually, WTI is slightly “sweeter,” “lighter,” and lower in price than Brent.

WTI Crude Oil

WTI, or the West Texas Intermediate, is a grade or a mix of crude oil. Its spot and futures prices are used as a benchmark in oil pricing. Its grade is light crude oil due to its relatively low density. In addition, the presence of sulfur makes it the sweetest. Therefore, it refers to the New YorkMercentile Exchange WTI Crude Oil futures price. 

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crude oil production

What is USOIL in forex?

USOIL in forex platforms such as Metatrader represents light sweet Crude Oil. Usually, the Metatrader USOIL symbol is WTI (West Texas Intermediate), USOIL, or Crude Oil.

 

There are various ways crude oil can be traded; our focus will be on retail forex trading platforms for this instrument. Let us see how to calculate oil in the WTI forex platform Metatrader.

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WTI Crude Oil Price – USOIL Price Today

Lot Size of Crude Oil – oil pips in MetaTrader

The minor price change for Crude Oil is 0.01 or 1 pip. So when the price rises from 40.00 to 40.01, it is 1 pip.

If we trade oil on the Metatrader platform, 1 micro lot trading size for 1 pip target is $0.01. If we buy 1 micro lot from 40.00 to 40.01, it is $0.01 or 1 pip. If we buy 1 mini lot from 40.00 to 40.01, it is $0.1 or 1 pip. If we buy 1 lot from 40.00 to 40.01, it is $1 or 1 pip. When traders calculate oil pips than  1 lot oil trading size, 1 pip move equals $1.00.

Many brokers give you 1:500 leverage on this instrument. 1:500 leverage means you can operate a capital of $500 in the market for every dollar you invest. This is what you need to open a 10-barrel position.

Other than the capital required to open a position, it would help if you had marginal capital to support any floating losses. You will lose 5 pips as soon as you open a position as it is its spread. 

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The leverage offered by brokers is not always this high. Some brokers offer leverage as low as 1:40. You will need more significant capital to open a position and support floating losses in such cases. 

Pip Value of Crude Oil

A pip denotes the slightest change in the price of an instrument. It helps identify how a tool in the market has witnessed much fluctuation. For example, by most trading platforms, a crude oil pip is considered $0.01. Remember that 1 lot oil trading size, crude oil 1 lot price, and 1 pip move are equivalent to $1.00.

 

How to Calculate Profit and Loss using Oil Pips in the Metatrader platform

Using the information that 1 lot oil trading size for 1 pip move is equivalent to $1.00, traders can easily calculate oil forex trading size position in Metatrader. This principle will help traders learn how to trade crude oil on the forex MetaTrader platform.

The trader bought 1 lot at 40.55 and closed the trade at 40.90. In this example, the trader generated 45 pips profit. Because the trader had a position size 1 lot, his gain was $45.

Buy 1 lot, gain 45 pips, profit $45.

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Buy 10 lots, gain 45 pips, profit $450.

 

How to Calculate Profit and Loss when we have barrel contract

Let’s calculate oil pips for barrel contracts for the smallest position.

In a 10-barrel contract, the oil pip value would be $0.01*10 barrels = $0.10.

This oil pip value is stationery as the U.S. dollar is the quote or counter currency in the crude oil and U.S. dollar pair.

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Let’s understand how profits and losses are calculated using crude oil signals by referring to this example:

Let’s assume that you buy 200 barrels of crude oil at $50 each, and your profit is $55 each.

The easiest way to find out your profit is by using a simple arithmetic equation:

(Profit gained at one barrel – the cost of one barrel) * Number of barrels bought = Total Profit

($55 – $50)*200 = $1000

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You can also calculate the total profit and loss using the pip value of $0.10. You can multiply the number of pips by $0.10, which is then multiplied by the lot. The result will again be $1000.

Crude Oil and Related Instruments

The oil price is a crucial fundamental factor that can manipulate the value of a currency, especially if the country is a significant exporter or producer of oil and oil products. For example, Canada exports a considerable part of its petroleum products to the U.S. the Canadian dollar (CAD) enjoys a stronger position when the traded oil prices are higher. However, a drop in oil trade volume or an increase in the instrument’s prices will negatively reflect its currency and subsequent currency pairs like USD/CAD. Other currencies correlated to the trading oil prices are the Danish Krone (DKK) and the Norwegian Krone (NOK).

What Affects Oil Price?

Like any commodity, the oil price also fluctuates. The rate of consumption and production are two events that affect it. For example, a declaration by the United States stating that a considerable amount of energy has been drawn from their reserves proves that there has been an increase in oil consumption. Since the demand has certainly increased, the prices will likely increase. This can be avoided only if the subsequent supply also increases. 

The oil prices will drop if the demand declines or the supply overpowers it. 

OPEC’s news also has a significant impact on the price of oil. The prices can spike rapidly if the Petroleum Exporting Countries (OPEC) Organization decides to reduce production. Investors will buy oil in considerable numbers to profit from it, leading to a further decrease in its supply.

War in the oil-producing country, delay in oil shipments for reasons like bad weather, damage to oil pipelines, a change in USD and other currencies, and technology are a few more factors that affect the oil price. However, the list is not limited to these factors.

Filed Under: Finance education, Oil

Forex Tax Free Countries in 2022.

by Fxigor

Tax is an important compulsory financial charge in any business, as well as in trading. So, let us see what countries are tax-free for trading.

Tax-free countries for forex trading


Certain countries are considered “tax-free countries.” This means that residents are not deducted for income tax, dividend tax, or capital gain taxes. Tax-free countries (spread betting tax-free countries) are the Bahamas, United Arab Emirates, Brunei, Monaco, Turks and Caicos, The British Virgin Islands, Oman, and Vanuatu.

Tax-free countries for forex trading

The best country for forex trading tax, where you can relocate and live, is Monaco. In this country, residents do not pay income tax, it has excellent infrastructure, high quality of living, beautiful houses, and rich neighborhoods.

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This list of tax-free countries in the world can be changed in the distant future. This list is not only for forex trading, but those countries are also tax-free business countries (any business).

The Bahamas

The Bahamas are a tax-free country. Residents are not required to pay income tax. The government receives its funds from tourism as well as its offshore industries. Regardless of where residents earn their income, they are not required to pay income tax. The application fee for Bahamian residence is renewable each year for $1,000. There are options for permanent residences, such as real estate investments of $250,000. It is also important to note the many benefits of the Bahamian passport, allowing extensive visa-free access.

United Arab Emirates

Is Saudi Arabia a tax-free country? No, but there is one Arabic country – The United Arab Emirates, also known as the UAE, which does not charge personal income or corporate taxes. Obtaining a residency visa in the UAE is fairly easy. Once a foreign-owned company has been established in one of their free trade areas, a residency visa is issued. Offshore companies can also be set up in Ajman, Dubai, and Ras Al Khaimah. In addition to this, foreigners can own real estate in Dubai’s projects.

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Brunei

Brunei is one of the tax-free trading countries. Brunei is an island in the country of Borneo. There are excellent banking options in Brunei and multiple options for residence.

Monaco

Monaco is a tax-free country. Monaco is located on the French Riviera. Monaco does not impose income tax on its residents. Monaco can be reached by train, car, helicopter, or boat. There is currently no airport in Monaco. Receiving a residency in Monaco is simple and convenient.

Turks and Caicos

Turks and Caicos are tax-free and located southeast of the Bahamas. Turks and Caicos is a part of the British Overseas Territory. Turks and Caicos are unique as they provide quick permits to residents that spend a minimum of $300,000 building a new home or remodeling an existing home on the island. Other ways to receive resident permits include investing $700,000 into a company with many local owners.

Oman

Oman is a country located in the Middle East. They do not tax personal income. Permits for residency are distributed on a limited basis. The main strategies for residency permits are employment or a family member that lives in Oman. A sponsor and government official must sign a non-objection certificate for the applicant before the application process can begin.

The British Virgin Islands

The British Virgin Islands are home to many entrepreneurs that have obtained residency in the BVI to avoid high tax rates in other countries. To obtain a residency permit for the BVI, applicants need to provide bank statements and a $1,000 bond.

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Vanuatu

Vanuatu is one of the only countries to allow residency through a donation. Investing $89,000 will permit you a one-year visa. This visa is renewed on an annual basis. Larger investments and donations allow you residency for anywhere from 3 to 15 years. The offshore financial center is also well-established.


Spread betting tax-free countries

Spread betting tax-free countries are the UK, Northern Ireland, Bahamas, United Arab Emirates, Brunei, Monaco, Turks and Caicos, The British Virgin Islands, Oman, Vanuatu. There is no capital gains tax in the UK and Northern Ireland to be paid on spread bets as they are completely exempt.

The following countries are Low-Tax Countries.

Low tax countries charge tax based on territory. These countries do not have CFC laws. The following countries only tax for income received inside of their own borders. Oversee income is not taxed for these countries. It is important always to use caution when remitting money. This process may be treated differently and subject to local income tax. The tax treatments in the following countries are favorable and preferable compared to most countries.

  • Belize

Belize has reasonable offshore laws and other benefits, such as an English-speaking nation. Belize used to have an official program for citizenship. This program has been changed, and residency is now permissible with an investment.

  • Georgia

Georgia’s country does not require companies to pay corporate tax until the profits of the company have been distributed. Therefore if profits are reinvested or retained, taxes are not mandated. The immigration process to the nation is hassle-free. Citizens of 94 countries around the globe can live in Georgia for one year without a visa.

  • Is Hong Kong a tax-free country?

No, Hong Kong is not a tax-free country, but it is a Low-Tax Country. Hong Kong is a republic in China with countless futuristic benefits and career opportunities. However, opening a bank account has become increasingly difficult as many people worldwide want to reside in the city. Residency permits in Hong Kong are more difficult to obtain than in other places in the world. Applicants have to spend a large amount of time in the city and are connected.

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  • Malta

Malta is an island located in the heart of the Mediterranean Sea. Digital nomads are the most common type of foreign resident in Malta as the island is a great home base in Europe.

  • Costa Rica

Costa Rica is hands-down one of the most popular South American vacation spots for Americans. The Costa Rican government allows residency permits for individuals that can prove a $2,500 monthly income source. Two-year visas are also available if individuals can prove $60,000 in saved income. Retiree visas are granted upon a $1,000 minimum income check. If an investment of $200,000 is made in real estate, a residency permit is also granted.

  • Singapore

Singapore has one of the most advanced economies in Asia. Taxes on company profits range from as low as 0% to 17%. A startup company in Singapore will not be expected to pay anything for their first 3 years. There are currently no taxes on corporate profits under $150,000. Countless co-working spaces and entrepreneurs have expanded in the area. An investment of $4 million will allow temporary residence in Singapore. Investment visas are treated differently than normal visas. Interest, foreign profits, and capital gains are not taxable in Singapore.

 

  • Thailand

Thailand is one of the most popular vacation destinations as a result of its inexpensive accommodations. Thailand does not have any CFC laws. The cost of living in Thailand is inexpensive and has been a popular choice for American ex-pats. Temporary residents qualify for permanent residency in Thailand after 5 years. There are options for residency through the Thailand Elite Visa and Iglu program.

Filed Under: Finance education

Is ICP Worth Investing In? – ICP Price Today

by Fxigor

 

Is ICP Worth Investing In?

As an only a year-old cryptocurrency, it is difficult to analyze the future of ICP, partially depending upon its price history, which looks quite disappointing. ICP Coin is not a good investment, in my opinion,  because any coin does not have instrict value and does not offer valuable products or services.

Cryptocurrency started showing results after a few years in the market. ICP looks like a promising investment if we look at its fundamental value and what it has to offer. However, looking at how it performed in its one year in the market, the investment does not look promising. 

Therefore, we suggest giving ICP some time and constantly following its price movements in the market. Also, ensure you perform your analysis before making any investment decision. 

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ICP Price Today – ICP Crypto Chart

Why is Internet Computer Coin Falling?

ICP has been in a bearish market since it was launched in May 2021. A significant reason behind the fall was the crypto-dumping allegations against DFINITY, the founders of ICP.

The company dumping ICP tokens worth billions of dollars has put the early investors in a tight situation where they can exit their positions. This has created a sense of investment suspicion and reduced demand for the coin. Hence, it resulted in the fall of the token price. 

ICP has experienced a little momentum now and then since it was launched. But, the overall outlook is bearish. Some predict that the token will rise again in the future due to the prospect of the project. However, we don’t know when or if it will happen. 

Is ICP Crypto Dead?

No, ICP crypto is not dead. It may have fallen in value, but the fundamental importance of the blockchain, which it was created for, keeps it alive.

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ICP or Internet Computer project has a promising future because of what it offers. It brings a blockchain-powered network that helps smart contracts run in a limitless environment. This environment provides web speed and scaling to the smart contracts while at the same time diminishing the computing cost. 

Looking at its promising aspect, there are chances that ICP will rise again, stating that it has been in the market for only a year. 

Does ICP Coin Have a Future?

The Internet Computer blockchain offers what many blockchains cannot: speed and scalability for running smart contracts with reduced cost. This aspect could possibly bring demand for ICP in the future.

ICP has taken a considerable dip from where it started one year ago. This has aroused doubts amongst investors about whether cryptocurrency has any future. It would be unfair to conclude as this crypto is relatively new in the market. The project it powers can generate promising results and demand in the future. It would be safe to say that we should keep an eye on ICP for some time before concluding if it has a future or not. 

Can ICP Coin Reach $1000?

ICP may reach $1000, but it will not happen anytime sooner.

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The blockchain can bring convenience to how smart contracts are run. If the platform can generate the demand, which can later help it get investment and eventually increase its market capitalization, ICP will start gaining momentum. However, looking at its current price and market capitalization, it will take longer to reach such a high price level, maybe five to ten years. 

Will ICP Bounce Back?

Forecasting websites and algorithm-based wallet investors present mixed outlooks. Some say that this is as far as ICP can go. On the contrary, others say that ICP will rise to $20-$25 in the next two years.

It is essential to know that everyone performs technical analysis differently and with different motives. These predictions are just assumptions and are not bound to happen definitely. With a highly volatile market like that of cryptocurrencies, these predictions can take a u-turn anytime. 

What is the Current Price of ICP?

Currently,

Can I Buy ICP on Coinbase?

Yes, you can buy ICP on Coinbase. 

ICP was added to Coinbase in May 2021; the same month, ICP was launched. Coinbase is a vast platform for trading and holding cryptocurrencies. It is a secure platform and is popular amongst cryptocurrency traders and investors. 

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What is ICP Crypto Used For?

ICP is the utility token that powers the Internet Computer Blockchain network. 

The Internet Computer blockchain network aims at providing a decentralized internet, which is otherwise because of the centralized server hosts. It can be used towards paying the transaction fees on the ICP network or as a reward for the network participants. ICP is also used as governance, where ICP holders vote for its future.

Can You Stake ICP?

Yes, you can stake the ICP tokens in the Network Nervous System. 

Network Nervous System is a governing body of the Internet Computer. Staking the ICP will help you earn voting rewards, through which participants can vote on different proposals like configuring or updating the network.

Who is Behind ICP Coin?

Dominic Williams was the founder of ICP, who founded the network in October 2016.

DFINITY, an NPO focused on scientific research, was the organization behind the discovery. Dominic Williams (founder and chief scientist) and his team, all experts in distributed systems and programming, came up with this project. 

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Is ICP Coin Proof of Stake?

No, ICP is neither Proof-of-Stake nor Proof-of-Work. The subnets hosted by the nodes on the network work on the chain key technology responsible for finalizing and quickly altering the smart contracts. 

The ICP network does not work like other blockchains, like Bitcoin or Ethereum. The nodes on the ICP network require standardized technical specifications that every computer cannot run. These nodes host subnets, which are a blockchain with a particular structure. The structure is such that it can be incorporated with other blockchains. This is quite different from a traditional blockchain.

Who Owns ICP Coin?

ICP is owned by DFINITY, which is a scientific research NPO. 

What Problem Does ICP Crypto Solve?

ICP brings a broader scope to the functionality of the internet and converts it into a global computing platform. 

The project aims at bringing the highly required speed to the blockchain by limiting the use of giant tech protocols like AWS. It does so by providing installation of codes directly on the public internet for creating IT systems for enterprises or websites. With ICP, developers do not have to rely on servers or cloud computing services. 

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Is Internet Computer a Blockchain?

Yes, the Internet Computer is a general-purpose blockchain. It is one of the most scalable and fast blockchains.

What Blockchain is ICP on?

ICP is hosted by its blockchain, which is the Internet Computer Blockchain.

The ICP blockchain is quite different from other blockchains, that of Bitcoin. Its independent data centers host nodes at the base of the network. These nodes host subnets that run on the critical chain technology, unlike proof-of-stake or proof-of-work used by traditional blockchains. 

Can I Buy ICP on Binance?

Yes, you can buy ICP on Binance.

Binance announced in May 2021 that it would list ICP on its platform once the liquidity conditions were met. Later, it was added to the forum and is currently traded in exchange for USDT, BUSD, BTC, TRY, BNB, ETH, and EUR. 

How Do I Get My ICP Token?

There are two ways in which people can get ICP tokens. They can buy the tokens through the exchanges where ICP is listed. They can participate in Internet Computer governance and get ICP as a reward. 

The straightforward way to get any cryptocurrency is to buy it directly through the cryptocurrency exchanges, where they are listed. Such is the case with ICP; it is listed on many exchanges, like Binance, Coinbase, Crypto.com, Gate.io, Kraken, Nominex, WazirX, and more. 

The Internet Computer network rewards its users with ICP tokens, who participate in the governance to vote for proposals for updates and configurations. This is another way of getting ICP tokens. 

What Wallet Holds ICP?

ICP holders have multiple options of wallets to store their tokens in. These can be stored in software wallets (internet) or hardware wallets.

ICP provides the privilege to its users to choose the type of wallet they wish to store their ICP holdings in. There are a variety of cold (hardware) and hot (internet) wallets where ICP tokens can be stored.

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The recommended wallets that are secure and compatible with ICP transactions and storage are — Stoic Wallet, Network Nervous System (also for staking), Plug Wallet, and Earth Wallet.

What is Dissolve Delay ICP?

The dissolve delay is a neuron setting that defines the minimum waiting time before one can unlock the locked ICP tokens. 

Users must use the command “Start Dissolving” to decrease their dissolution delay over time.

How Long Do ICP Transactions Take?

ICP transactions take one to two seconds to finalize a transaction. 

Speed is the primary objective of the Internet Computer blockchain. While other blockchains take a minute or more to finalize a transaction, if there is no congestion in the network, ICP takes only one or two seconds to do so. 

Where Can I Buy ICP in the US?

Many cryptocurrency exchanges are available in the US from where people can buy ICP. The popular one amongst all the public exchanges is Coinbase. 

Can I Buy ICP on Crypto Com?

Yes, ICP coins are listed on Crypto.com. This means you can buy, sell, and store ICP tokens on Crypto.com.

Crypto.com is a Singapore-based cryptocurrency exchange with over 50 million users around the globe. It has over 200 coins on its platform, and the ICP is one of those coins. It was added to the platform in May 2021 and can be exchanged for other cryptocurrencies like USDT and BTC. 

How Do I Send ICP to Ledger?

You can manage your ICP tokens on your Ledger by downloading the Internet Computer app. 

Internet Computer App is a product of the DFINITY foundation, a scientific research NPO. It has its hot wallet, NNS (Network Nervous System) dApp, which helps the users manage their ICP holdings. Since ICP cannot be managed live on the Ledger, users can download the Internet Computer App to manage their ICP. 

How Do I Transfer ICP to Safepal?

Safepal wallet does not support ICP tokens. Therefore, you cannot transfer your ICP holdings to your Safepal wallet. 

Will ICP Price Go Up?

As ICP has been in the market for only a year, it is difficult to say how it will progress in the upcoming days, will it go up or further down. 

There is a mixed outlook amongst investors regarding the future of ICP. Due to its past price movement, many believe this is as far as ICP will go. However, the Internet Computer blockchain’s real prospect is making people think it may go up in the future.

However, ICP has been in the market for only a year. It is advisable to check the movement of this crypto for a few more months to see how progressive it can get or not. Predictions made by other investors and forecasting websites cannot be entirely believed to be accurate. 

Is ICP A Good Long-Term Investment?

According to the predictions of some forecasting sites, which are predicting a positive future for ICP, it could be an excellent long-term investment.

The Internet Computer blockchain has a fundamental value. It establishes a blockchain network that eradicates the limitations of traditional blockchain, bringing speed and scalability to the smart contract at a reduced cost. Due to this aspect, many believe that ICP has a bright future in the long run.

However, ICP is a cryptocurrency considered the most volatile class of tradeable assets. Investors and traders should be aware of the magnified risks involved with such assets. One should make investment plans following their risk-taking ability. 

How Many ICP Coins Are There?

There is a total supply of 482 million ICP coins, of which 238 million are in circulation. 

What Does ICP Crypto Do?

ICP crypto is the utility token that powers the Internet Computer Blockchain network. 

The Internet Computer blockchain network aims at providing a decentralized internet, which is otherwise, in the case of other blockchains, because of the centralized server hosts. It can be used towards paying the transaction fees on the ICP network or as a reward for the network participants. ICP is also used as governance, where ICP holders vote for its future.

Is ICP Crypto Decentralized?

Yes, ICP crypto is a decentralized cryptocurrency. 

What is ICP Max Supply?

There is a total supply of 482 million ICP coins. There is no cap placed on the maximum supply of ICP tokens.

No cap on the maximum supply puts a cryptocurrency vulnerable to inflation. However, the ICP network plans to reduce its inflation at the rate of 5% every year. 

What Was ICP All-Time High?

$494.56 was the all-time high for ICP tokens.

ICP experienced its all-time high in the initial days of its launch. After that, it took a steep fall and traded below $7. 

What Network is ICP Coin On?

The ICP coin is the utility token for the Internet Computer Network. Users of the network use this token to pay for the transaction fees. It also gives them voting rights in the governance (voting for updates and configuration).

Where Do You Store ICP?

ICP tokens can be stored in hot and cold wallets powered to hold them. 

Cold wallets or hardware wallets like Trezor and Ledger can store ICP tokens. While for software wallets (hot wallets), Internet Computer has wallets like NNS (Network Nervous System), Plug Wallet, Stoic Wallet, and Earth Wallet. 

When Did ICP Start Trading on Coinbase?

ICP was added to Coinbase in May 2021. It was the same month when ICP was launched. 

Is ICP on Gemini?

No, ICP is not listed on the Gemini exchange. 

How Long Do ICP Transactions Take?

Can I Stake ICP Token?

Does ICP Have Limited Supply?

No, ICP does not have a limit to the supply of the number of coins. There is a total supply of 482 million ICP coins, of which 238 million are in circulation. 

Since there is no limit to the number of ICP coins that will ever exist in the market, there are high inflation chances. However, the organization plans to decrease the inflation rate by 5% yearly. 

How Decentralized is ICP?

ICP is truly decentralized as it supports the computation and creation of dApps and smart contracts with higher scalability and speed. In other words, it provides an unbounded capacity on its blockchain. 

Will ICP Burn Tokens?

Yes, ICP tokens will be burned over time as it is an integral part of creating cycles required to run the network software.

The developers generally use cycles on the Internet Computer network to pay for the consumption of resources and computation. The only way these cycles can be created is through burning ICP tokens. 

How Much Can You Make Staking ICP?

The capacity of rewards from staking ICP depends on your voting history and DD (Dissolve Delay). More voting and longer DD mean higher staking rewards. 

It is a given that the longer you stake your ICP tokens, the more returns you will get. Also, governance is an essential factor for increasing one’s reward earnings. For example, a user actively voting on ICP proposals and has set DD between 8 to 10 years can have up to 28% yield annually. 

How Many ICP Does a Neuron Have?

Depending upon the period or dissolve delay requested by the user, the maximum number of ICP tokens staked varies. 

A neuron is created when you stake ICP on the Network Nervous System. Every neuron holds an ICP token and has voting powers. The maximum limit to a neuron’s voting power is 250; this power is acquired if you have 100 ICPs. 

 

Filed Under: Cryptocurrency

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