What Is Russell 2000 and How Does It Differ from S&P 500?

Author: Victor Gryazin

Dear Clients and Partners

This overview is devoted to a popular stock index Russell 2000: its contents, its differences from the S&P 500, and ways of trading it.

What is Russell 2000?

The Russell 2000 index (US Small Cap 2000) is one of the leading global indices based on the stock prices of 2,000 companies with small capitalization traded in the USA. The index was created in 1984 by the Frank Russell Company, a part of the London Stock Exchange. Russell 2000 is called a wide market index among small companies as it represents stock price dynamics of tier 2 and 3 companies.

The Russell family consists of several indices, the most famous of them being:

• Russell 3000 is an index based on the stock prices of 3,000 largest public companies registered in the USA. Their overall capitalization makes up for 97% of the American stock market.

• Russell 2000 is an index consisting of 2,000 smallest companies of the Russell 3000 index.

• Russell 1000 is an index that tracks 1,000 stocks with the highest rating from Russell 3000.

Russell 2000 is the most popular index among investors who hold shares of companies with small capitalization. Investors usually track this index to assess the market efficacy of small enterprises, mostly working for the domestic market. As long as there are so many companies in the index, your portfolio automatically diversifies.

Leading companies of Russell 2000 include startups in the spheres of healthcare, food, and consumer goods. Russell 2000 is calculated based on capitalization-weighed stock price of all the companies in it. The index gets revised every year, some companies being removed from and some added to it.

How does Russell 2000 differ from S&P 500?

• The number of companies: S&P 500 uses the shares of 500 largest companies, and Russell 2000 – the shares of 2000 smaller ones.

• Capitalization of companies: S&P 500 tracks the leading companies; it is meant for investors who hold the shares of large enterprises. Russell 2000 demonstrates the state of affairs in small companies; it is meant for investors who hold small but promising shares in their portfolios.

• Volatility: depending on the current market conditions, the volatility of S&P 500 and Russell 2000 may differ. At certain times, one index demonstrates better volatility, while the other comes to the scene as soon as the situation changes.

• These two indices have both differences and common features. S&P 500 is a wide market index that includes companies with the highest capitalization, while Russell 2000 is a wide market index with a low capitalization. The main differences are as follows:

On the whole, regardless of all the differences, S&P 500 and Russell 2000 have been showing similar dynamics.

How to trade Russell 2000

First of all, Russell 2000 is a most popular investment instrument but it can be used for short-term trading as well. Thanks to a wide range of instruments (ETFs, futures, options, CFDs) for trading Russell 2000, different strategies may be used.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

How to Trade by Day-Hour Strategy?

Author: Andrey Goilov

Dear Clients and Partners,

Looking for signals on larger timeframes and then confirming them on smaller ones is quite a widespread strategy. Even in John Bollinger’s book on graphic patterns traders looked for graphic patterns in D1 charts and then switched to other TFs to wait for the same patterns to appear on them.

The Day-Hour trading strategy is exactly such a way of medium-term strategy, by which the trader searches for entry points on daily charts, then opens an H4 and assesses the strength of the signal on it. However, you do not need to look for any graphic patterns, as this type of trading is highly subjective: one trader sees one pattern, while another trader can see an absolutely different one at the same place of the chart.

By this strategy, the trader only cares for signals from technical indicators. This makes trading completely objective.

Which indicators to use for Day-Hour?

This strategy requires use of indicators. The first one is the usual Moving Average. The indicator is easy to use:

• If the price is above the Moving Average, then the trade is bullish, hence look for signals confirming the growth;

• If the price has dropped under the MA, the trend is bearish, and you need selling ideas.

The other two indicators used in the strategy are oscillators: the MACD and RSI.

Most often, traders use a trend indicator and one or more oscillators to look for signals that confirm the trend.

All in all, add to the chart the following indicators:

1. Moving Average (3). The “shift” parameter is also at 3. The line will be shifted three candlesticks to the right. This indicator is necessary on the daily chart.

2. The MACD with the parameters 12, 120, 5. This is an indicator fir H4.

3. The RSI with period 9. The overbought level is 70 and the oversold area is 30. This oscillator is also for H4.

All these indicators can be found in the standard settings of MetaTrader 4, MetaTrader 5, or R Trader. This is a huge advantage as you do not need to download or install anything extra.

Closing thoughts

The Day-Hour strategy is meant for trading the trend, as one of the main traders’ rules goes. For a decent market entry, the strategy implies analyzing both D1 and H4 of the instrument. This method decreases risks and gives a chance a catch a good movement on the D1.

The drawback of the strategy is that it remains valid only when there is a good movement on the chart. When the price is in a flat, the trader will constantly be seeing breakaways of the MA up and down, which might entail a series of bad trades. On the other hand, opening a position by a trend that is just beginning, you never know what levels it might reach.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

Best Short-term Strategies: GBP/JPY Range

Author: Andrey Goilov

Dear Clients and Partners,

Trading GBP/JPY might be quite tricky because it is so volatile: its average volatility range exceeds 100 points. However, closer to the Asian trading session the market calms down and sometimes forms a range, pushing the pair out of it by the main trend.

A short-term strategy called GBP/JPY Range uses no indicators; it includes pending orders which shortens your time in front of the terminal. Moreover, working by the strategy, the trader does not choose or forecast the market direction but simply follows the price.

The article is devoted to the idea of this strategy, its trading principles, and to generally checking whether the authors of the strategy have managed to pacify such a volatile pair.

Description of GBP/JPY Range

For trading by the strategy, we use the M15 chart of the GBP/JPY pair. Stick to the closing time of the American and opening time of the Asian sessions. This is 23:00-02:00 terminal time.

Draw horizontal lines through the high and lows of the price in the mentioned timeframe. Then place pending orders for breakaways a bit higher and lower than the drawn levels. If one order gets triggered, delete the second one. If none is triggered over 4 hours, delete both and try again on the next day.

Note that the narrower the corridor, the less it is possible that a strong movement will develop. If the range is quite wide, it is unlikely that the movement will continue after the breakaway. In practice, higher volatility changes for lower, then for higher, and over and over again. It is important that we notice low volatility to catch higher volatility later.

If the channel is wide, volatility is high, hence, there will be no movement after the breakaway. By the rules of the strategy, if the channel is over 70 points wide, you should not trade.

Selling by the GBP/JPY Range

As an example of a selling trade, let us take a breakaway of the channel downwards. We mark the beginning of the channel at 23:00 (11 p.m.); the low of the channel is at 152.74, the high is around 152.86. At 03:00 (3 a.m.) the lower border of the channel was broken, and the price went down. Place a Take Profit at the level of two ranges. This time, the movement was strong and triggered the TP at 152.50.

In this strategy, we need a Sell Stop pending order as it opens a selling position below the current market price. By the strategy, we must place it 2 points below the low of the range. In our case, it is 152.72.

Place a Stop Loss behind the high of our range to avoid random price movements against our position. Hence, we place it at 151.95.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

What Is Stock Split and How Does It Influence Stock Price?

Author: Victor Gryazin

Dear Clients and Partners,

This article is devoted to such an idea as a split of stocks, its influence on the stock price and on how attractive they are for investors

What is a stock split

A stock split is an increase in the number of stocks of the issuer in circulation that entails a decrease in the stock price but not in the general capitalization. This is a wide-spread market practice, naturally supported by the company's desire to make their expensive shares more affordable to a wide range of investors.

Many actively developing companies are interested in an in-flow of extra money that new investors can bring. However, not every investor can afford promising and expensive stocks.

Hence, to make stocks cheaper and more affordable, the split procedure is run to. As a result, the number of stocks increases and their price drops proportionally. This makes the stocks more affordable to investors.

For example, if a company increases the number of its shares five times, i.e. carries out a split of 5:1, investors can have 4 extra shares per each they already have.

At the same time, the price of one share decreases proportionally: if initially a share cost $1,000, after the split it will cost $200. Hence, each shareholder of this issuer will have 5 times as many shares but their total price will not change.

Critical points of stock splits

The split coefficient that shows how much the number of stocks changes after the procedure, is normally anything between 2:1 and 10:1. In the split procedure, there are three main dates:

• The day of announcement. To get started, the company makes a public announcement of its plans for a stock split and all the details that investors need to know. This information usually includes the split coefficient and the day when the split is to happen.

• Register closing day: this is an important day when the list of the company's shareholders is settled. These people will get extra shares after the split.

• The split day is the day when new stocks appear on the investors' broker accounts and start trading at the new price.

What is a reverse split?

There is another procedure known as the reverse split that also changes the number if stocks in portfolios. It is also called stock consolidation.

By this procedure, the stocks that investors hold are changed by a proportionally smaller number of stocks. For example, a reverse split of 1:3 makes every three shares into one. This means that if you used to hold 30 shares of the company, after a stock consolidation you will have only 10 but the price of each share will grow three times.

For example, if the stocks did horrible, trading low under a dollar, a reversed split can raise their price.

How does a split influence the stocks and investors?

On the whole, a stock split is interpreted as a good event for the issuing company, though it does not influence its capitalization directly. A split means that the company is developing, doing well, and the growth of its shares confirms it. Carrying out a split, the company signals that it wants to make its shares more attractive and affordable to private investors.

A decrease in the price makes the shares more affordable to investors and more liquid. The history of splits shows that the growth of stocks after a split usually exceeds the growth of major stock indices. Hence, after a split, the portfolio of an investor can have a significant profit, if the shares keep growing.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

How to Work with Sources of Information and Avoid Falling A Victim to Market Panic

Author: Vadim Kovalenko

Dear Clients and Partners,

In the era of the Internet and electronic media when information is available to anyone, it’s become easier to fall a victim to a pre-planned information attack. In this article, I want to tell you how to avoid this “doom” when analysing financial news.

When you’re overcome with market panic, you can take wrong investment decisions, which will make you lose potential profit or, which is worse, suffer losses.

From time to time, news media misrepresents a real picture; however, even in these cases, one can eliminate the unlikeliest pessimistic or optimistic scenarios. To be able to do this, one has to be well informed about basic concepts of the nature and special aspects of provided publicly available economic information.

Where should we start?

At first, you have to understand: ordinary people don’t have and will never have an amount of data available to civil servants just because some part of this data is highly classified information. Therefore, one should rely only on public sources.

Economic data implies a set of indicators that display the national economy state or show any changes in all its components. When performing market analysis on one’s own, it is recommended to use only documentary information sources.

Types and sources of information

There are a lot of economic data classifications but we’ll talk only about the most important ones. The data is divided into:

• Forecasts: short-, mid-, and long-term.

• Planned: can be found in the economic calendar.

• Accounting: financial reports, national statistics.

If you’re a rookie in analysing economic indicators, it is recommended to stay away from ready analytical reviews because they are already distorted by the author’s subjective perception. It’s much better to work with primary data. Of course, in the very beginning, you may draw false conclusions but they will be your personal mistakes you’ll learn from. However, sometimes you should read opinions given by popular financial analysts to have a second opinion.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

How to Trade “Tasuki Gap” Pattern?

Author: Victor Gryazin

Dear Clients and Partners,
In this article, we’ll discuss the rules and methods of trading the “Tasuki Gap” pattern. You won’t find it very often, but it’s a quite strong pattern of trend continuation from the candlestick analysis.

How the “Tasuki Gap” pattern is formed

The “Tasuki Gap” candlestick pattern is formed during an ascending or descending tendency and predicts its further development. The pattern consists of three candlesticks: the first two have the same body colour with a price gap between them; the third candlestick has an opposite body colour and returns the price into the gap (between the first two candlesticks).

The first two candlesticks of the pattern show the trend direction and confirm its strength – the gap between them is evidence of that. The third candlestick, which is closed in the opposite direction, is a correction towards the previous movement. This candlestick shouldn’t eliminate the gap with its closing price – if it happens, trading the pattern is not recommended.

Bearish Tasuki Gap

“Upside Tasuki Gap” is formed during a descending tendency: bears dominate the market and believe that the decline will continue. The black bearish candlestick appears on the chart. Later, under the influence of active sales on the market, the next candlestick is opened with a gap to the downside and closed with a black body candlestick.

After that, the price is forming an ascending correction, during which a white bullish candlestick appears and makes the price return to the gap. This gap is now a resistance level. Here, bears start selling again and if bulls couldn’t close the session above the gap, then bears are very likely to resume the downtrend and update the local low.

Recommendations for trading the “Tasuki Gap” pattern

When trading this pattern, one should pay attention to the following:

• “Tasuki Gap” must be formed within an ascending or descending tendency, it’s better not to trade it inside a sideways channel (flat).

• The pattern’s third candlestick mustn’t close the gap completely with its body. In this case, a trading signal is cancelled.

• The pattern materialization probability increases in the combination with price patterns, support and resistance levels, signals of trading indicators.

• It is recommended to use H4 of longer timeframes.

Closing thoughts

The “Tasuki Gap” candlestick pattern appears during an ascending or descending tendency (bullish or bearish respectively) and predicts its further development. Excellent addition to the pattern is technical analysis.

Before using the pattern in real trading, one should learn past statistics and historic records and practice on a demo account.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

RoboForex: changes in trading schedule (revert to Standard Time and Unity Day)

Dear Clients and Partners,

We’re informing you that on October 31st, 2021, European countries will revert from Daylight Saving Time to Standard time. In the USA, the same will happen on November 7th, 2021. As a result, there will be some changes in the trading schedule*.

In addition to that, due to the public holiday in Russia, Unity Day, USDRUB will be traded according to the changed schedule on November 4th, 2021.

MetaTrader 4 / MetaTrader 5 platforms

Schedule for trading on Metals (XAUUSD, XAGUSD)

• From 1 to 5 November 2021, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 12:05 AM - 10:59 PM.

• Starting 8 November 2021, Metals will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on US indices

• From 1 to 5 November 2021, trading on CFDs on US indices will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 02:00 AM - 10:15 PM.

• Starting 8 November 2021, CFDs on US indices will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on oil (Brent and WTI)

• From 1 to 5 November 2021, trading on CFDs on Oil will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 02:00 AM - 10:15 PM.

• Starting 8 November 2021, CFDs on Oil will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on US stocks

• From 1 to 5 November 2021, trading on CFDs on US stocks will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 03:31 PM - 09:59 PM.

• Starting 8 November 2021, CFDs on US stocks will be available for trading within the operating range of the contract specifications.

Schedule for trading on USDRUB

• Starting 1 November 2021, the USDRUB currency pair will be traded according to a new schedule.
  Trading session (server time): 09:00 AM - 5:30 PM.

• 4 November 2021 - no trading.

• 5 November 2021 - trading starts as usual.

R StocksTrader platform

Schedule for trading on US stocks, CFDs on US stocks, ETFs, and CFDs on ETFs

• From 1 to 5 November 2021, trading will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 03:30 PM - 10:00 PM.

• Starting 8 November 2021, the above-mentioned instruments will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on US indices (US30, US500, NAS100)

• From 1 to 5 November 2021, trading will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 09:00 AM - 10:00 PM.

• Starting 8 November 2021, the above-mentioned instruments will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on Metals (XAUUSD, XAGUSD)

• From 1 to 5 November 2021, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 12:05 AM - 10:59 PM.

• Starting 8 November 2021, Metals will be available for trading within the operating range of the contract specifications.

Schedule for trading CFDs on oil (BRENT.oil and WTI.oil)

• From 1 to 5 November 2021, trading on CFDs on Oil will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 02:00 AM - 10:15 PM.

• Starting 8 November 2021, CFDs on Oil will be available for trading within the operating range of the contract specifications

cTrader platform

Schedule for trading CFDs on Metals (XAUUSD, XAGUSD)

• From 1 to 5 November 2021, trading on Metals will be opened and closed 1 hour earlier than usual (server time).
  Trading session (server time): 12:05 AM - 10:59 PM.

• Starting 8 November 2021, Metals will be available for trading within the operating range of the contract specifications.

Schedule for trading on USDRUB

• Starting 1 November 2021, the USDRUB currency pair will be traded according to a new schedule.
  Trading session (server time): 09:00 AM - 5:30 PM.

• 4 November 2021 - no trading.

• 5 November 2021 - trading starts as usual.

Please, note that on 5 November 2021, trading on all instruments in all platforms will be closed at 11:00 PM server time.

In addition to that, from 1 to 5 November 2021, the bank rollover time will be from 10:45 PM to 11:15 PM server time. This might lead to short-term interruptions in quoting and significant widening of spreads.

Please, take into account these changes in schedule when planning your trading activity.

* - This schedule is for informational purposes only and may be changed.

Sincerely,
RoboForex team

What are Forex Cent Accounts Needed For?

Author: Victor Gryazin

Dear Clients and Partners,

In this article, we will review cent accounts and what they are needed for. Such accounts let beginners dive in real trading with minimal expenses and experienced traders – test their trading strategies or robots, as well as some psychological relief.

What is a cent account?

A cent account in Forex is a trading account provided by the broker; the balance is measured in the base currency (US Cent, EU Cent, etc.) denominated 100 times. Trading conditions on cent accounts are almost the same as on real ones. You only need to deposit it for 10 USD to get a 1,000 US Cent deposit.

The Cent account type is widely used for market beginners and those traders who practice or want to test a certain strategy in real market conditions with smallest expenses.

A cent account is always a transition point between a demo account and a classic one, the first step to real trading with a decreased risk. If, for example, a trader wants to work with a capital of 10,000 USD, they only need 100 USD to open a 10,000 US Cent account.

What are cent accounts used for?

Whether one needs a cent account or not, this is always for each trader to decide. One needs it for practicing for real with minimal risks, another – as an account for making unsystematic emotional trades. Let us focus on the main reasons for using cent accounts.

Test trading

This must be the most widespread reason for using cent accounts. Beginners practice their skills on demo accounts, but as long as money is virtual there, they do not include one of the main aspects of trading – the psychological one. Hence, for further development, they need to switch to a real account, and a cent one is a great choice. It allows getting real trading experience and check the working ability of their trading system with minimal expenses.

They can just keep in mind the capital that they plan to use in the market. For example, to check the abilities of a capital of 5,000 USD, they can open a cent account and deposit it for 50 USD to get a 5,000 US Cent capital. As a result, the trader can fully test their strategy on this deposit, risking 50 USD at worst. However, their profit will also be in cents, not in dollars.

In such cases, the trader’s task is not to make a large profit but to train their skills and develop psychological stability. After the trader makes sure their trading is stable (they get a positive result over a reporting period: quarter, semester, year), they may switch to a real trading account.

Psychological vent

Another reason for using cent accounts is making emotional trades that go counter your trading rules. For example, you see on the chart that after some important fundamental news there is a strong active movement. You are sure that a mighty impulse will follow but your trading system does not give any signals in this direction. You want to open a position but this is against your rules, right?

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

MACD + ADX Trading Strategy

Author: Andrey Goilov

Dear Clients and Partners,

The name of the article clearly indicates that the latter is devoted to a strategy that uses two indicators: ADX and the MACD oscillator. To be short, I will be calling it MACD+ADX. Some say that a trend indicator alongside an oscillator is the most efficient combo.

The strategy is meant for day charts of currency pairs, which means less time spent on graphic analysis than with shorter timeframes. Any of these three pair suits the strategy: EUR/USD, GBP/USD, AUD/USD. Experienced investors stick to these ones because majors have more predictable behavior, and tech analysis works much better on them.

In the article I will show you how to combine signals from the two indicators correctly and will reveal some nuances and rules of work by the strategy.

MACD+ADX description

To open a position, start by analyzing the activity of ADX with period 16. Make sure you choose correct settings when adding the indicator to the trading terminal.

Signals in the strategy do not differ from "classic" ADX signals. As you know, the author claims that a crossing of +Di and -Di as it is already gives a market entry signal. For example, if +Di crosses -Di from below, this is a signal to buy, and if -Di crosses +Di from above, this signals to sell.

+Di and -Di show the difference between today's and yesterday's high and low. So in the first case, when +Di goes up, the trend must be ascending because today's highs are higher than yesterday's. Hence, buying is the best option in such circumstances. Meanwhile, when -Di values go down, we can conclude there is a bearish impulse and get prepared for selling.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

What is Depth of Market and How Does It Work?
Author: Victor Gryazin

Dear Clients and Partners,

What is DOM?

DOM (Depth of Market, a.k.a. Level 2, Order Book) is a list of current orders to sell and buy a certain trading instrument, presented as a handy table. It demonstrates prices that market players offer at the moment. DOM shows the actual balance of sellers and buyers and thus serves a handy instrument for traders and investors.

Stock market, in essence, is an auction in which sellers and buyers participate. For example, you want to buy 10 stocks at a price you set yourself. Your order gets into DOM, and if your price is close to the current market price, a seller will appear quite soon. However, if there are people in the market who want to buy the stocks at a higher price, you will need to wait until their orders are executed.

What does DOM look like?

Classic DOM is divided into two columns: in the left one prices and volumes of buyers (the number of lots) are presented; in the right one there are prices and volumes of sellers. The difference between the nearest orders to buy and sell is the current spread.

The look of DOM depends on the trading terminal you use but general parameters are the same. Normally, orders to sell are at the top and orders to buy are at the bottom. DOM cannot accommodate for all orders placed by buyers and sellers real-time online. Hence, it shows online those orders that are the closest to the current market price.

They are what form the so-called DOM. For example, if DOM is 20*20, the table consists of 20 nearest buy prices and 20 nearest sell prices. This is quite a wide-spread look of DOM that brokers use. However, you can customize it in the trading terminal settings.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team

RoboForex: ticker changes following Facebook's company rebranding

Dear Clients and Partners,

Facebook, Inc. (NASDAQ: FB) announced the change of its name to Meta Platforms, Inc. (“Meta” for short), as part of its company rebranding.

If you have open positions in FB or you plan to open positions, please take into consideration the changes that will take effect prior to the trading session start on 1 December 2021.

How will this change affect positions and orders?

Accounts on MetaTrader 4 / MetaTrader 5

• The ticker of all open positions in CFDs on Facebook's shares will change from FB to MVRS as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.

• The ticker of all open positions in Facebook's shares will change from FB.nq to MVRS.nq as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.

Accounts on R StocksTrader

• The ticker of all open positions in CFDs on Facebook's shares will change from FB to MVRS as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.

• The ticker of all open positions in Facebook's shares will change from FB.nq to MVRS.nq as of 11:00 PM server time on 30 November 2021, prior to the trading session start on 1 December 2021.

Pay attention to Expert Advisors (EA)

If you are using Expert Advisors (EA), check their settings to make sure they are operating correctly after the ticker changes.

All other trading conditions remain the same. Please take the above ticker changes into consideration when planning your trading activity.

Sincerely,
RoboForex team

How to Use Personal Income and Personal Spending in For example

Author: Victor Gryazin

Dear Clients and Partners,

This overview is devoted to two macroeconomic indicators — Personal Income and Personal Spending —and their influence on the stock market.

What is Personal Income

Personal Income represents monthly changes in the income of physical persons. This indicator assesses in percent the changes of the aggregate income of people in the country over a reporting month compared to the previous month. For calculations, income from several sources is used:

• Wage/salary

• Bonuses

• Income from owning real estate

• Income from holding financial assets

• Income from enterprises

• Subsidies and social payments

• Insurance, pension, etc.

In the USA, Personal Income is calculated and published by the Bureau of Economic Analysis (BEA), alongside Personal Spending.

Monthly changes of personal income is one of the key macroeconomic indicators that the BEA uses for assessing business activity in the country. Personal Income changes are published monthly in the Economic Calendar.

What is Personal Spending

Personal Spending demonstrates monthly changes in expenses of physical persons. It assesses in percent how aggregate expenses of people in the country have changed over the reporting month compared to the previous one. This includes all main expenses of the population:

• Spending on services

• Spending on durable and not goods

• Spending on banking transactions, commission fees, etc.

This indicator is also calculated monthly and published by the BEA alongside Personal Income. Consumer expenses are part of the GDP, hence, PS helps forecast its growth. Also, it is one of inflation growth indicators. Changing Personal Spending us published monthly in the Economic Calendar.

Read more at R Blog - RoboForex

Sincerely,
RoboForex team