Triangle Formations (Part I)

By Ahmad Hassam

Triangle formations appear relatively common in charts. Triangles are one of the best depictions of decreasing price volatility in the currency price charts. Through triangle formations you can ride on a potentially high momentum move that is likely to occur after a period of decreasing volatility.

When a particular type of triangle has been identified by the trader, a high probability trade is in sight when the technicals are coupled with the current market sentiment. All triangles show decreasing price volatility in action.

Triangles are basically continuation patterns. But they can also be reversal patterns. This depends on the different types of triangles and whether they occur in an uptrend or a downtrend. Triangles are also known as Wedges. There are basically three types of triangles: 1) Ascending, 2) Descending and 3) Symmetrical.

Ascending Triangle: It is basically a bullish signal when you see an ascending triangle on the chart. An ascending triangle can be easily identified by its upward sloping trendline. This upward sloping trendline creates the lower boundary of the ascending triangle. An ascending triangle can be either a continuation or reversal pattern.

The upper boundary is roughly horizontal and should connect at least two price points. The upper boundary represents the resistance level. The crowd psychology behind the ascending triangle is this that every time the currency price goes up to the resistance level; there is sellers in the market who push the price down.

Similarly when the prices retreat from their high and are on the way down, there are buyers who believe very strongly that the currency price should rise based on their own reasons. They thus bid the prices higher than the previous low forming the upward slope of the triangle.

The triangle is formed when these two lines, one sloping and the other horizontal converge at one point. Breakouts tend to occur in the middle or the third of the triangle formation measuring from the start of the triangle to the tip. The appearance of an ascending triangle should prepare you for an upside breakout form the resistance.

It acts as a bullish reversal pattern if it formed during an existing downtrend. It is seen as an uptrend continuation pattern when you see an ascending triangle during an uptrend in general.

Descending Triangles: A descending triangle works the opposite of an ascending triangle. It is viewed as a bearish formation even though it can be either a continuation or reversal pattern.

A descending triangle can be identified by the downward slope of the trendline which is formed by connecting the lower price highs. This downward sloping trendline forms the upper boundary of the triangle. The horizontal lower boundary of the triangle represents the support level and it is formed by connecting at least two price points. - 23210

About the Author:

Mr. Ahmad Hassam has done Masters from Harvard University. He is interested in day trading stocks and currencies. Know These Forex Charts. Learn Forex Trading!

Laws Of Physics According To A Penny Stock Advisor

By Malcolm Torren

Imagine you penny stock advisor as a physicist? What would investing be like for him? Would he have invented something beneficial for everyone? Or would he have created something for world domination? Would he be formulating new laws for the stock market for every one to gain? Or would he be outlawed for disclosing too much information to the public? How would the stock market look and sound like?

Interesting isn't it? You'd probably end up analyzing too much on some empirical formula and how it works. Perhaps you'd be challenged about momentum penny stocks. Is there really gravity in these numbers? What could be your learning curve? If the penny stock advisor was a physicist, would he be interested in the stock market just the same? What laws of physics could there be?

- Law no. 1 - What goes up must come down. Well for sure, the numbers will still behave as usual. Think of your penny stocks as bubbles. The smaller the price, the lesser its weight. Then the easier for it to float. When it gets bigger, the more volatile it becomes and the easier it bursts. Then you may lose the bubble forever.

- Law no. 2 - There are no horizontal lines, just horizons. Professor penny stock advisor will tell you that your penny stocks cannot move sideways. It's only up or down. Therefore, if it goes up, you don't see horizontal lines but new and better horizons for you.

- Law no. 3 - Think big, start small. You start with a cheap small cap share and imagine it to grow bigger. But it needs energy if you want it to grow. Penny stock brokers will help bring in the investors to fuel the energy for you. At the end of the day, your profit is realized. This theory explains that with positive energy, your penny stocks can only grow.

- Law no. 4 - Time is inversely proportional with money. The longer you keep your penny stocks in, the more risky your investments become. Professor penny stock advisor can prove this by applying this fourth theory with the first law. If your penny stocks are subjected at a longer time at its current size and weight, it will eventually drop.

- Law no. 5 - The theory of the penny stock trajectory. What is a trajectory? A trajectory is defined when an object is thrown up into the air. Because of the magnitude of force it is subjected, it will take time before it comes down again. This imaginary curve is formed. With this curve includes the time factor when how long it stayed up and the distance it has covered with its travel. If the penny stock trajectory is perfect, an investor and penny stock broker would be able to pinpoint the exact time when the peak happens. Unfortunately, there is none.

Then professor penny stock advisor therefore concludes that the laws of the stock market can be compared to physics. But the difference is that the penny stock trading cannot be an absolute science. You cannot calculate risks accurately. But you can trace the irregularities of the trend. Your best fallback is your empirical analysis. That means your ability to decide. - 23210

About the Author:

Discover more concerning day trading penny stock. Consult the best penny stock pick online.

Investor Diversification - An Individual Decision For The Small Investor

By Michael Swanson

Any investor who has done some research is well aware of the advice diversify your investment portfolio to minimize your risk. It makes sense; we as cautious humans quickly understand the old proverb "Don't put all your eggs in one basket". But when it comes down to the dollars and cents, does investor diversification benefit the smaller investor?

Depending where you are in your investment life your acceptance of risk, known as your risk profile, will change. As a young parent your risk level may be low - it is hard enough to save the money, you can't afford to lose it. As your move into your main earnings years you are a little more risk attuned. You have the ability to weather any particular losses and time to make up those losses. When you have reached retirement and are living off those investments your risk profile may be low again. In all those stages the level of portfolio diversification is likely to be different.

Diversification, by its very nature, means that while our risks are minimized our exposure to profits can also be minimized. The money we have tied up in fixed interest is not available to take advantage of a red hot stock picks or a booming property market.

Another problem for the small investor is the smaller pool of funds he has to play with. It would be great to have a portfolio of property, a wide range of stocks and bonds, bank deposits and investment art. But to buy into all of these areas the small investor risks having such tiny investments in each that it isn't worth the effort.

There are many instances where specializing have paid off, look at Henry Ford or Bill Gates, neither of these diversified their markets. But there are just as many examples of people who have not diversified and have been burnt.

In the end each small investor has to assess his risk profile and manage his investor diversification appropriately. - 23210

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Buying and Selling Property

By Martin Davis

Due to the current economic climate, in recent months, the UK housing market has been in dramatic decline. A staggering 16.6% decline has been seen, to date with a total of 1.3% of that amassed during January 2009.

Whilst searching online it is not hard to find information regarding the current economic climate. It has been reported that the housing market in the UK could fall further still and any improvements are still some time away.

It has been predicted, by the Royal Institution of Chartered Surveyors (RICS) that there will be a further 10% decrease in the number of houses sold, this year. The housing market is currently in the worst position seen in many, many years.

RICS have reported that house prices will plummet a further 10% and sales of homes will not pick up again until 2011, therefore people will have to accept that their homes are now worth less than they were a few years ago if they are going to move on.

Although the market is in this weakened state, there are many people who are still willing to buy. For those who are looking to invest in property this may be the ideal time to do so. With house prices still falling and so many people being faced with homes being repossessed, deals are certainly available.

During the rest of 2009 it is expected that a further 34,000 homes will be repossessed. Housing repossession is currently at an all time high, this owing mainly to the current economic climate. People are finding it ever more difficult to keep up with their mortgage and rent repayments.

Below are a few reasons why the UK property market has seen a fall over the last year.

(1) There are many people out there that are worried about losing their jobs and making repayments. This is making a lot of mortgage companies wary so they end up holding back on lending.

(2) Mortgage lenders are demanding a higher down payment from first time buyers, doing this makes it difficult for the buyer as normally they do not have the money.

(3) People are expecting house prices to fall further, they are unwilling to buy.

(4) Bank base rate cuts still have not changed peoples minds in remortgaging, even with the cuts the average mortgage has not altered within the 2-3 years.

The property industry is not at its healthiest at the moment, many construction workers are becoming out of work and many estate agents are closing by the day. As stated above, it is a very difficult time for this industry. - 23210

About the Author:

Adflyer is an online Classifieds site that allows private sellers and the online retailer to sell completely free. 1000s of people place free classifieds with Adflyer every day.

How To Chose Best Trading Broker?

By Lukas Veselinov

You want to trade online and you are looking for a forex trading brokers? It can be difficult to find one , but it is not impossible. But lets take it step by step. You need to know what a forex trading broker is. A trading broker is a one person or company which will hold onto your money to sell and buy based on your decisions. Step two: How to find reliable broker?

You need to do a thorough research to find it. And here are three important tips that will help you decide on the forex broker you are going to use.

One: The first thing you need to know is if the forex trading broker is regulated. If the forex broker you are using is based in the U.S., then they need to be registered as a Futures Commission Merchant for the Commodity Futures Trading Commission; plus, the need to be a member of National Futures Association.

Second : You need to find out if they provide a reliable and quality , 24/7 customer support? Try to find out what whether their operating hours align with the global forex market's hour of operations.

3. Find out what services they can provide. Are they able to provide the currencies that are most needed? Whether their operating hours align with the global forex market's hour of operations.

Using these three tips you will be able to find a good forex trading platform with little difficulty. The important thing is to research each different forex broker that you find, then decide which one to use.

The critical element is to research all of the various forex brokers that you are able to locate, then choose the one you will use.There's nothing for you to lose but the time it takes to identify the broker and trading platform that suits you.

Finally, when you find couple of them which you like you can easily join them all because you have nothing to lose as they offer free accounts and if they are all free then sign up with everyone of them. After that, just start to trade with the broker and online platform you like best. - 23210

About the Author:

There are literally thousands of sites and claiming they will help you earn money. It's easy fall for scams. If you are really looking for online currency trading broker rating and want to get more tips and advices, please visit Smart-Product-Reviews.com.To Your success, Lukas Veselinov. SPR Team