Triangle Formations In Forex Trading (Part I)

By Ahmad Hassam

You should know and understand triangle formations. Triangle formations appear relatively common in 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. Triangles are one of the best depictions of decreasing price volatility in the currency price charts.

All triangles show decreasing price volatility in action. 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.

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 this horizontal line should connect at least two price points. The horizontal line represents the resistance level. What is the crowd psychology behind an ascending triangle? There are sellers in the market who push the price down every time the currency price goes up to the resistance level.

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.

When these two lines, one sloping and the other horizontal converge at one point the triangle is formed. The appearance of an ascending triangle should prepare you for an upside breakout from the resistance. 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 general guideline is this that when you see an ascending triangle during an uptrend, it is seen as an uptrend continuation pattern. But if it formed during an existing downtrend, it acts as a bullish reversal pattern.

Descending Triangles: Even though it can be a continuation or reversal pattern, a descending triangle is viewed as a bearish formation. A descending triangle and an ascending triangle are the opposite of each other.

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. - 23223

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading stocks and currencies. Know These Forex Charts. Learn Forex Trading!

A Forex Tutorial On How The Forex Market Works

By Bart Icles

Learning the basics of the foreign exchange market is part of any forex tutorial. And part of learning the basics is learning more about how the foreign exchange market works. We may all know that a certain type of forex market exists in any place wherein one currency is traded for another. You can say that the foreign exchange or currency market works as an international market for different kinds of currencies. Through forex trading, investors from different parts of the globe are able to exchange currencies.

Practically, the forex market works through the exchange of currencies. This currency exchange makes the forex market unique because investors are able to buy and sell money all in the same time. Currency trades are done in pairs wherein one currency is paired with another. Some of the most common currency pairs include USD/CHF or the US dollar and Swiss franc, EUR/JPY or the euro and Japanese yen, and CAD/USD or the Canadian dollar and US dollar. Presently, the forex market is the largest trading market in the world, where in more than one trillion trades are done each day. Turnover rates in the foreign exchange market are almost thirty times larger than the total volume of equity or stock trades in the United States.

In spite of its large volume and popularity, the public remains to be relatively unfamiliar with the foreign exchange market. The currency market was made open to the public only in 1998, when large inter-bank units were broken down into smaller pieces and offered to the public.

Before 1998, the foreign exchange market was only meant for big players like banks, large currency dealers, and multinational corporations. These days, the currency market is no longer limited to large-sized businesses that have strong financial backgrounds - even individual traders are allowed to participate in foreign currency trades. Nevertheless, large international banks still remain to be the major traders in the foreign exchange market. These large banks are said to be in control of almost 70% of the trades in the forex market.

If you are looking into joining the unpredictable yet rewarding world of currency trading, it would help a lot to spend time in learning the ins and outs of forex trading. You can start with a simple forex tutorial on market basics so you can have an idea of how the market works. The amount of time you spend on learning more about the currency market and the quality of forex education you receive can pretty much determine your future success or failure in the forex world. - 23223

About the Author:

A forex trading system is powerful when coupled with a desire to learn and a drive to become a great trader. Learning forex trading systems takes dedication and a good teacher. But once you learn how to trade and do so successfully your life will change and you have options and financial resources you never had before.

BlackHorseFund: Uses Experience And Tactics To Succeed

By Robert Miller

July 27, 2009, Los Angeles California " In baseball a home run is a thrilling play and when it happens, it gets the fans on their feet to cheer for the batter. One Forex fund is striving to hit home runs day in and day out.

BlackHorse Fund, a California-based private Forex fund has a strategy of winning profitable trade after profitable trade based on a number of factors, including an experienced team and a proprietary system for trading. And the real winners? The fund's investors.

Forex is the largest market in the world and it involves the trading of currency by buying one currency and selling the other. As currencies increase or decrease in value, the purchased currency may be worth more than it once was so the position is closed and a profit is realized. This market is highly liquid and necessary for world economies to function effectively.

Forex may be well-known investing opportunity but few people are successful at it when they invest on their own. The amounts of dollars (and yen and pounds and pesos) that change hands is massive and it often takes a team of experienced people with a highly perfected system to enjoy the returns necessary to consider this investment a wise decision. BladkHorse has both the team and the technique and their fund's investors pool their money to be used to grow capital.

The team of traders and analysts who perform the research and make the trades each bring years of experience to the table. They include seasoned Forex investors a well as those who have experience in the field but bring an outsider's outside-the-box perspective. The team's skills are a balanced mix between fundamental analysis and technical analysis and the team works together, within specific parameters, to strive for successful wins.

The expertise of the BlackHorse Fund traders is matched by the invaluable tactics and a proprietary forex algorithm that reads the market and analyzes it deeply.

With a powerful team and technique in place, this fund has grown dramatically, earning stellar results for its select pool of investors. While real numbers cannot be disclosed, the fund's traders have made successful trades that have more than doubled the initial investment.

BlackHorse Fund is made up of a group of limited partners as well as BlackHorse Management LLC. The limited partners are private investors who were able to pass through the exclusive investing "gate", which includes a rigorous new investor application process. - 23223

About the Author:

Please You can contact the BlackHorse Management team at info@blackhorsefund.com for more information, for information about the investor application process, or for media inquiries.

Investing Is All About Knowledge

By Jens Jackson

Anyone who has been trading for awhile will tell you that investing in the stock market is anything but easy. There is nothing like the pain you get in your stomach when you put your hard earned money on the line and get it wrong. You do not have to take a stab at investing alone. Thanks to the Internet there are many investing blogs, websites, and forums that you can go to to get free information. Try and meet more knowledgeable traders than yourself and then learn everything you can about making money investing in stocks.

You have probably heard the cliche two heads are better than one, and that three heads are better than two. Imagine having thousands of people with a common interest in investing to share knowledge with. Think about just how much you can learn by sharing and listening to stories from fellow investors, experienced and inexperienced alike. I am not only talking about investing with respect to this learning: you may be surprised with how much you can learn from other people, never mind the fact that they are only online and not communicating personally. Socializing, at any level, is the spice of life, so why not integrate something as complicated as investing with the simple act of communicating with other people? Investing blogs make sure that you learn, while enjoying the benefits that socializing brings as well.

You need to read the rules, regulations, and disclaimers before becoming a regular reader of a message forum or blog. You should also check out a financial websites reputation. If they have a bad reputation, stay away from it. Comments should not be deleted by so called moderators. Moderators are bad in any form as they restrict the free flow of information and speech by nature. Any website that needs moderators is probably a website that has a bad reputation and has made a ton of enemies and so they have to keep deleting comments on a regular basis. Spend time researching a financial blog or message forum before you become a regular reader. It is easier to walk away from a website or blog in the beginning before you get emotionally addicted to the content.

My personal favorite is to join stock trading blogs that require no account whatsoever to read and learn from the materials posted. In the end, what website, message forum, or blog you decide to read is up to you but just make sure you do it because the learning curve to becoming a successful and profitable trader is a lot shorter when you have other stock traders to help you.

Keep an eye on the type of stocks a message forum, club, or blog is telling you to buy. Is there a pattern of the stock picks always being small caps? If there is, watch out. Small cap stocks move on very little buying activity. These are the easiest stocks to push higher. Make sure you are not the target of a pump and dump snow job involving small cap stocks. - 23223

About the Author:

Written by Jens Jackson. Do not purchase any stock training materials until you see Lance Jepsen's awesome free stock market blog at investing

Properties Sector of Dubai and Investment Options In It

By Mohamed Whitesnow

With Dubai evolving into one of hottest tourist attraction and business capitals of the world, the real estate sector of Dubai is fast becoming a lucrative opportunity for investment. Property in Dubai without doubt has huge demand throughout the world and it would seem a wise move at present to make an investment in this area. Rental opportunities are increasing as more and more people are expatriating to this busy and wonderful business center of the Middle East. You can make a fortune if you are able to make the correct move at the right time.

Since Dubai has officially become one of the fastest growing cities of the world, the real estate sector is becoming one of the best options for investment in Dubai. Travelers from all over the world visit Dubai and it has become a very popular holidaying destinations. This is one of the many reasons for the high pricing of real estate in Dubai. International resorts and hotels are expanding their business by constructing beautiful hotels and magnificent resorts all over Dubai that has made the value of Dubai property very high.

Due to the enormous demand of property in Dubai, the prices have run up tremendously with overpricing of real estate becoming one of the major issues. The properties area of Dubai has not been able to come up with a solution for the problem of lapse of supply in comparison to the huge demand that is there on the market. This way, before you plan to buy properties in Dubai, do look for some help from professionals to understand the correct value and growth prospective of this assets. Without proper professional help, you may end up buying a property in Dubai with an overrated price and low future prospects.

There is a huge imbalance if we compare the offer of apartments and villas in Dubai. The Dubai real estate division has not been able to meet up to the demand of the number of villas in comparison to the availability of the apartments. The square footage area and the facilities are the main reason why building companies are more attracted by high-rise apartment buildings rather than the one story houses.

If you are looking to invest in houses then you can check out the Jumeirah Beach Residence property in Dubai. It is among the largest commercial and residential projects of the world with an investment of nearly 1.12 billion Euros. There are a number of hotels in this region, which makes investment in Jumeirah Beach Residence one of the wisest investments in property in Dubai. In terms of Gross Domestic Product, real estate market in Dubai has shown considerable improvement in the past few years and it looks like it grows further in the future.

You can make a real fortune by simply renting your Dubai properties. The annual income from rent at present in Dubai is around 5 to 10% of the total property value. This will eventually grow over the years, which means that you do not even need to sell your flat in Dubai to make a fortune. A simple rental scheme will suffice and will reap in the benefits that you have been planning to make from it.

You can easily afford the high-rise apartments of Dubai and it is great investment in the Dubai property. If you are able to utilize this real estate asset properly then you will find that it is bringing you huge benefits. The rental incomes from the high-rise flats are quite high and you will be making huge profits from the investment of yours. To understand the value and prospects of type of property you must consult professionals, preferably real estate lawyers and reputed agents to find out the possible benefits and profits that you are going to get form this real estate in Dubai.

Make sure that the location in which you are buying your property has growth potential. The value will surely rise for a building or apartment if it is near a shopping mall, hotel or resort. The real estate sector of Dubai is a wise option now for investment. Even if you are buying the property with the help of a loan, the rent that you are going to receive for your properties in Dubai will pay for it quite conveniently, and before you know it, you will be making a huge profit from your property.

Dubai has not escaped the global financial depression and the cost of properties have dropped dramatically in Dubai. The situation is calming lately with the prognoses of real estate prices stabilization by the end of 2009. - 23223

About the Author:

Here you can find adverts of property for sale in Dubai posted daily. Mr Muhamed Whitesnow is an enterprenuer functioning in the area of Dubai property. Remember, Dubai is a great place for real estate investments if you do it the right way.