Principles of Candlestick Chart Patterns

By Brad Morgan

One of the traders aids in developing mechanisms of candlestick charts are the candlestick patterns. They are quite indispensable when one is engaged in the creation of basic systems that help indicate a trend formation so you can begin trading.

The open, high, low, close rate of the stock, commodity or currency over a period of time is illustrated in the candlestick form. The period covered is typically user selectable.

The customary time period is 5 minutes but you may desire in particular situations to take 15 minutes. Usually, longer periods are applied for longer term trading.

The candle body defines the disparity of the close and open points. If it's green/blue (for colored charts) or white then the lower bounds of the rectangular body is the open and price went up during the respective period. A red (for colored charts) or black indicates the top boundary is the opening price, whilst the price diminished during that period.

The wick is the title given to the vertical lines that generally stick up from the top and down from the bottom of the candle body. The top of the upper part of wick is the highest position that the price ever attained during the period. The bottom of the lower wick is the low.

This approach of analysis assists the trader to know at a glance if values slashed or went up during the analysis time frame. Bearish tendencies or rise in price are depicted by green or white candles while bullish tendencies or fall in price would be recognized by red or black candles.

The association of open and close values to high and low values can be discerned immediately. Then there is a solid candle without a wick.

The name for this is Marubozu pattern. This signifies that the opening and closing prices were never moved in either direction by the low and high rates.

The high value as opening price and low value as closing price is represented by the red or black candle. On the other hand, green or white candle indicates the low was the opening price while the high was the closing price.

A relatively even upward or downward trend is defined by a long body. A reversal is determined by a long wick on the top or on the bottom.

A candlestick has to be read along with the previous ones in order to ensure appropriate trending. From there relatively intricate trends can be built to exemplify the trends in the future. - 23223

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Forex and the Death of the Dollar

By James Pynn

As the economy plunges headlong into the new Dark Ages, you may want to get a piece of the proverbial action before the only thing we've got left is bartering chickens. I may be exaggerating, but most financial pundits are heralding the death of the dollar, the ascendancy of gold, and the new strength of foreign currency. While you may not be able to do much about the dollar, or buying into gold outright, you can indulge in the booming forex training services online.

The forex market is responsible for roughly $4 trillion in daily revenue. That's right, you read that correctly -- daily. This incredible sum takes into account the relative strength and weakness of a variety of world currencies. Yes, for now the dollar is king, but most forecasts say this will not be the case come 2012 or 2018. The end of the greenback's dominance is making way for the crafty Euro, the developing Chinese Yuan, and the assured Australian dollar.

You've got to diversify. Diversifying your financial portfolio is a given. In fact, it's a tired cliche. What to diversify it with is anybody's guess. Mutual funds, hedge funds, commodities, stocks -- the sky is the limit. What could prove to be the best option could be a decent round of currency diversification.

You have to flesh out your portfolio with more than dollars. You need currencies from nations that are poised to inherit the 21st Century. It is no secret the Chinese are poised to become the largest economy in the world. You can add the Indians. Brazilians, and Australians to that list as well. The newfound strength of these economies is the fact they are based on solid factors, like manufacturing and production. Indeed, they are economies that are moving to accrue more gold and precious metal with which they can back their currencies.

There is a bright side to the eventual death of the American way of life as we know it. There will be plenty of opportunities for savvy investors. World currencies, unless there is a new world currency, will always be a lucrative trade. The key is understanding how to conduct these trades legally and effectively. - 23223

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With the right degree of forex training, you could stand to make a tidy bit of money. The trick is being smart and doing your homework.

Deciding if a Loan Is Not a Good Idea

By Sara Ferguson

Personal loans arent always the best way to borrow money. You might want to think about it if:

You need to borrow only a few hundred dollars: The smaller the sum you borrow, the higher the rate of interest you pay. Borrowing an amount under $2,000 is extremely expensive in terms of interest charges. Most lenders also have a minimum that you can borrow: If you need less, you may find yourself taking out a bigger loan simply in order to get the money in the first place. This isnt a wise move. You may be better off borrowing smaller sums on a credit card or extending your overdraft instead of opting for a loan.

You can repay the money in a couple of months: The shorter the loans term, the bigger your monthly repayments, so work out whether you could afford them if you take a loan out for just a year or so. If theres a chance that youll be able to clear the loan even sooner, you may be charged a redemption penalty for doing so. If this is the case, you may be better off borrowing on a credit card with a 0 per cent introductory period for several months instead. This may be enough time to repay your borrowings " without having to pay any interest at all.

You're borrowing $40,000 or so to improve your property: If you already have a mortgage, it might be better to ask your mortgage lender to extend your home loan rather than take out a personal loan particularly if you need money to build an extension or otherwise fix up your home. Although interest rates on personal loans have fallen, they still tend to be higher than mortgage rates (the cheapest loan is around 7 per cent compared with mortgage rates of less than 6 per cent). So you pay less interest if you increase your mortgage instead. This is easier to arrange than a personal loan because you already have a relationship with the lender.

Think carefully before extending your mortgage and overburdening yourself. Your home is at risk if you cant keep up the repayments on it, whereas if you take out an unsecured loan to pay for your extension, your home is safe. Dont gamble with your home. Before you decide to take a loan, make sure you really need it, the worst thing to do is to borrow when you have other options. - 23223

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Learning how to invest is a life long process. How to Invest Today is an educational blog dedicated to teaching how to invest.

Forex Trading Software

By Cecilia McCormack

Awareness with regards to forex trading software programs had surprisingly increased from the time when automated systems was established and became usual as well as made available. Not long ago this was the zone where the players were large investors, be it banking companies or other financial institutions, but now even mid and small level investors are getting drawn into towards this field. When you deal the currency of one country for another currency, this is the place where it comes about. There is no end in trading trillions of dollars in this place each day so this marketplace had been hailed as the most active and largest financial market in the world.

These days, through the efficiency and wonder that a advanced computer technology and the internet can give with the use of an internet link, forex dealing computer software, and knowledge regarding accounts and brokering anyone can trade in forex. This marketplace is open 24 x 7 and to monitor the developments, you have to keep a constant vigil. With the assistance of these automatic systems, you can pick up a currency, its asking and selling price ahead of any buying. What are necessary are a small investment amount and a broker for immediate transactions.

The automated forex trading software programs systems will do the rest or most of the work for you so you don't have to be an expert in this deal to make money. When managed accounts use the automated trading systems, the program can easily control everything for you. This process can actually save you a lot of time since the dealing won't be done by you but the auto systems itself. Moreover, the automatic trading system helps you manage multiple accounts at the same time which you cannot expect to handle manually. trading in of various markets with numerous systems is allowed by these programs.

The forex trading software programs has that flexibility and ease that you can enjoy since you are able to choose to trade any time without being there physically. Though you are not always connected to your computer, it doesn't actually mean that you are more likely to miss out any profitable opportunity. Thus it becomes more convenient to use with several systems, and put many of your forex strategies into action. Activation of the assorted systems are tuned to several typical trade ingredients to ensure that you can draw in the majority of the profits by getting engaged in the least risks.

The best part about this forex dealing computer software is that it does not take into consideration any human ingredients which often stand in the way of making good trading decisions. Managing and monitoring a number of currencies all at once as well as trading them any time you like are the abilities that will be given to you.

Using the forex dealing software does not relieve you of your responsibilities of getting knowledgeable about the basics of forex trading, market trend analysis, technical analysis etc., if you want to make lasting profits. The forex market is still dependant on a number of components and variables therefore success can't be assured even if you are using the top rated automatic systems. Of course, you can always make the forex trading software programs tailor-made to suit your specific needs. - 23223

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All Investments Have Gone Down In This Economy

By Jesse Astolos

Anybody who has lost money this last year in the stock market may be unsettled. This has been a tough couple of years where almost everyone has come out a loser. The stock market is a place where anybody can look like a fool when it is going down and look like a hero when all stocks are going up.

At times like these it is hard to buy back into the market because of fear but we all know that at some point we need to get back in. Choosing that reentry point is what will ultimately separate the winners from the losers. The people who have the nerve to get back in when prices are low are the ones that will ultimately come out winners.

When you buy more stock at lower prices than you already own some shares, it is called averaging down. For instance, if you own 100 shares of ABC corp. at $100 a share and then you buy 100 more shares at $50 after it has gone down, you will now own 200 shares at an average price of $75.00. You will have averaged down the price of your shares. This is what we will all be doing when we buy back into the market.

Although it may be tempting to buy more of what you have and to average down, it might not be the smartest choice. Most economists and stock market analysts agree that you should be diversified in your investments and that might mean buying other company stocks instead of the ones you already own. It also could be done by buying other types of financial investments such as treasury bills or bank CDs. A good investor never has too much in one asset as that would expose them to too much risk.

Even if you have been properly diversified, you have most likely lost money in this terrible environment. All investments types have suffered as well as jobs and anything else related to the economy. This will not last forever though, and at some point it will be the right time to get back in. Those that are able to recognize the correct reentry point will stand the best chance of cashing in and actually making money. - 23223

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