Best Robots FX and Defender Forex Robot
Best Robots FX is a web portal that claims to develop and offer traders the best EAs to assist them in earning profit. Best Robots FX is a partner of two well-known brokers – Equiti and AxiTrader, who are both regulated by the FCA. The web portal does not offer any other insight into the minds at work behind the forex robot. The absence of a dependable name taking responsibility for the robots creates a suspicious image for the EA.
Best Robots FX offers three distinct EAs to the traders – Defender Forex Robot, Index EA Forex Robot, and the Striker Forex Robot. In this review, we will be focusing on the Defender Forex Robot. The traders can also apply for a MAM account through Best Robots FX.
Forex Robot Trading Strategy
The Defender Forex Robot has been designed for the MetaTrader4 and the MetaTrader5 trading platforms. To use this EA, one must have more than $3000 in their trading account. The forex robot can be used 24/7 and can be accessed via remote desktops too.
The web portal, however, does not provide any relevant information about the trading strategies employed by the Defender EA. For traders who wish to have complete transparency, the lack of necessary trading information is a major red flag.
The trading results for Defender Forex Robot have not been directly presented on the website. Rather, the platform offers a link to the verified FXBlue account of Defender EA. On following the link, one can find trading results for a period of 301 days (as on 30th May 2019).
Areas of high interest can often indicate buy and sell big players. Whales (major market participants) can't just enter a trade with one order. They need to gradually build and strengthen your position. Often, their trading volume is so powerful that they absorb all the supply, which subsequently leads to a large and explosive movements on the charts.
Knowing the area of supply and demand, we can determine the area of increased interest, because these moments on the charts can not be unnoticed.
A strong uptrend is possible only in the case when the number of buyers exceeds the number of sellers is obvious. During a bullish trend, the price increases as long as the market will not enter a sufficient number of sellers to absorb the buy orders. A strong bullish trending is called the zone of accumulation or demand.
The reverse situation occurs during a bearish trend. in This case, the sellers exceed the amount of buy orders then the price drops until a new balance, and buyers won't be interested in the price and will not buy the offer for sale. The presence of the wave of the bearish trend is called the area of distribution or supply.
Liquidity and absorption of the order
The example below is what we've all seen hundreds of times. It shows the classical behavior of the price near the support. I personally in the study of the theory I read about that the more price for the same level of support, the stronger becomes this level. However, in practice, I began to face a completely opposite phenomenon and in this regard, I would like to share his vision with you.
What causes the price to fall, is the imbalance between buyers and sellers, and the more sales, the less chance of the buyers to keep the price at the same level. Every time the price reaches the support level, buyers enter the market and cause a rebound, exceeding the volume sellers. Then the price increases as long as the sellers will not re-enter the market, will outnumber buyers and cause the price to go down. Such a simple description can give understand all market movements.
The fact that each time the price reaches the support level, buyers become less and less. Subsequently, all leads to the fact that buyers who were interested in purchasing, the amount of cash that they were ready to throw in the market at a particular level. This process is called absorption order . The snapshot below shows that the price moves to lower highs, which indicates the dominance of sellers, and in the end, the support level is broken, and the sellers have absorbed all of the market offer.
Very clearly the behavior of the market in these moments illustrates the picture that I attached below. Think about the takeover of an order close to level as the ball bounces from the floor. Every time the ball hits the ground, some energy is absorbed by the floor. Thus, each successive bounce will be lower than the previous, until all the energy is gone and the ball will not stop.
Compare how the picture below and the graph are similar to each other:
How to find an area with a high level of supply and demand?
I think now you need to understand how we can apply this information in practice.
The most probable levels are those that have the greatest imbalance between buyers and sellers. What does it mean? Whenever you see a long trend movement or impulse, and then suddenly, without any prior signals, the price immediately turns around and falls are areas of serious imbalance.
In order to stop the trend and to expand it, requires a large amount. This can be to make assumptions about future price movements. Whenever on the chart is formed, such a price region of the demand or supply, it is reasonable to assume that not all the sellers were able to enter at this price the first impulse.There are times when during important news events the price simply flies away and your order does not have time to execute. It is these situations that occur in increased zones of supply and demand.
In addition, it is very likely that in the event of a sudden sale, more players in the market expected sales to be slightly above this level, and most likely they had orders there. After all, who would not want to sell at a higher price?
There are three factors that can help you find these areas:
Strong trend movement before a reversal.
Strong rebound from the level. The price does not stay in one place.
Strong trend movement in the opposite direction.
How to trade supply and demand zones?
Theory does not play any role if you cannot or do not know how to put it into practice. Trading is the ability to enter a deal in time and exit it in time. How can zones of increased demand and supply help this:
Trade on the rebound
When the price approaches the zone of interest, you can consider opening a transaction in the opposite direction. In this, the search for reversal candle patterns, the presence of divergences with indicators can additionally help. If there are additional factors to a market reversal, plus everything happens near the zone of increased demand and supply, this is an ideal situation for opening a transaction with a view to a market reversal.
Support or Resistance Zones
There are levels of support and resistance that intersect or are close to areas of high demand and supply. By and large, the zones we are considering are also support / resistance levels. But, it is worth noting that, in comparison with ordinary levels, such zones are more significant in the overall picture of the market, so if you learn to find them correctly, this will be a big plus for your successful trading.
I hope the article was useful to you, and have taken advantage of several important points.
how about doing some test to confirm that ?