Triangle Formations In Forex Trading (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.

A high probability trade is in sight when the technicals are coupled with the current market sentiment when a particular type of triangle has been identified by the trader. 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: When you see an ascending triangle on the chart, it is basically a bullish signal. It can be either a continuation or reversal pattern. An ascending triangle can be easily identified by its upward sloping trendline. This upward sloping trendline creates the lower boundary of the ascending triangle.

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.

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. The buyers 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.

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

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. - 23196

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!

Using Stock Charts Right

By Mike Swanson

Stock charts can be incredibly useful to people that are interested in trading stocks on the open stock market. You will be able to analyze the information from the charts as a means to ensure that you are only making the smartest investments that you could possibly make. Even stock market beginners can use them.

You need to be able to evaluate the information that can be found on the stock charts in order to rest easy that you are making a good decision in your investment endeavors. The charts will show you the fluctuation of the stock market and the chances of different stocks climbing on the market as well as the possibility of the same stocks falling.

Remember before you ever commence in trading on the open stock market, that there will be some underlying risks to every investment that you make. Simply because stocks are based off of company revenue they do have a reason to decrease as well as increase as they please.

The economic situation that the world faced made a plethora of people turn away from utilizing the stock markets and turn towards different forms of investment. However, the people that chose to leave the market because of its decline are gradually being brought back to it more and more every day.

The stock charts will allow you the opportunity to gain a firm understanding of how the market works and allow you the opportunity to evaluate the market from an outsiders perspective. A lot of people still use systems from ages ago when investing. They bet when the stock is low and hope that it will one day rise again.

The probability of a stock rising once it finds itself at a low stature is a 50/50 stake. However, many people have found that by utilizing stock charts they can gain enough adamant knowledge to be able to distinguish from stocks that are going to benefit them as opposed to stocks that may end up taking them for everything that they have.

Stock charts are beneficial to both traders starting out their investment careers as well as veteran traders. - 23196

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Opting Between a Currency Mini Account and a Demo Account

By Brad Morgan

The standard Forex account has a diminutive version known as a Mini account. The minimum amount compulsory for starting an account is $2000 for the standard account. Conversely, the minimum for a mini account is solely $400.

With regards to trading lots, "mini lots" is the phrase used for Mini accounts. For a Standard FX account, the pip value is $10 meaning if the market moves fortunately for you in say 100 pips then you would make $1000. The Mini account has a much petite pip which is $1 so you simply get $100 from a advantageous movement of 100 pips.

If you'd desire to open up an account with even less amount than any mini account there is even a "micro account". A micro account could be opened for as low as $25. If the market advances 100 pips in your side in this type of account your earnings would be $10.

The smaller Forex accounts such as the Forex mini account are notably convenient for those getting started in Forex trading. Even though there are demo accounts available which mandate no real money to trade, a mini account can serve a particular goal.

That objective is that you will be transacting with real money. Transacting with real money will assist your trading more closely level what it will be like when you escalate to trading a standard account.

For a Demo account, having no authentic money means no factual risk. In truth, people regard the demo trading as a play trade with play money. Thus a phenomemon happen where newbie traders are prodigies at trading with demo accounts but lose profoundly when they begin using standard accounts with real money.

Your purpose whilst trading your Forex mini account is to sharply imitate what you will do when you move up to a standard account. You will have a chance to put your trading skills to the test yet at the same time having a minuscule amount of money on the table.

So you don't defeat the purpose, you must, for all intents and purposes use the same method of risk analysis and have the same regard for the mini as you do your standard account. This will give you the self restraint required to succeed in forex trading.

Finally, when you are happy with your percentage of revenue on your mini account, you can then elevate to the standard account knowing that you now have the skills necessary to succeed. - 23196

About the Author:

Buy peter bain forexmentor before trading forex. Forex markets are very dynamic, try a fap turbo review to keep on top of it.

Forex Option Trading - Fixed Prices to Shield a Trading Account

By Steve Maenshel

Forex option trading is often used by large financial institutions for their hedging strategy implementation, as well as it is used by a large number of day traders as a speculative instrument. Forex options are a specific type of a trading instrument, which has its upsides and downsides. One of the special features of Forex option trading is that it's extremely liquid. Forex option buyer is called a holder, while Forex option seller is called the granter.

Forex options grant the owner the right (not obligation) to exchange a particular amount of one currency into another currency on a particular date and at a pre-agreed rate. Forex option trading is known for incurring only a limited liability. The buyer only has one obligation - to pay a premium to the seller prior to the purchasing of the foreign currency option. The seller can either buy the contract back before it expires, or to hold the contract until its expiration.

Forex option trading can protect you from unfavorable fluctuations, which could eat up your whole account, since the amount that you may lose is fixed in advance.

Exercising of the Forex options does not always occur with Forex option trading. In fact, it does not occur more often than it does. The options are usually offset until they expire. Every time the option does get exercised, the option holder is said to be assigned a spot position. In case the final strike price is below the initial purchase price, the option expires and becomes worthless.

As mentioned before, options in Forex option trading have a fixed price. This special feature shields you from losing all of your capital with a particularly unfavorable market move. You will profit when the strike price is higher than your initial purchase price, and you will incur a loss when its lower.

Forex option trading is applied strictly at the international exchanges, since it is a hedging instrument. While being probably riskier than regular Forex trading due to its uniqueness, Forex option trading is also potentially much more profitable.

Call options grant their owners the right to buy the currency. Put options grant their owners the right to sell the currency. Both call and put Forex option prices are predominantly influenced by volatility. Increasing volatility results in both call and put options to grow in price. There are two types of put and call option contracts in Forex option trading. Common (plain) options are called "plain vanilla" options and customized ones are called "exotic" options.

Are there any ways to make your Forex option trading less risky? Yes, for that try to follow the below general guidelines:

1. Forex option trading should only involve a very small part of your capital.

2. Use only the proven signals with your Forex option trading.

3. Trade on a Forex option trading demo account prior starting to trade live.

Forex option trading is a good way to learn and understand more about the Forex market. Forex option trading is a risky but also potentially very profitable Forex trading instrument. - 23196

About the Author:

About the author: Steve Maenshel can you develop a solid foundation for forex option trading. Fore more forex market info, visit his forex resource center.

Dubai Properties: The Diamond Mine For Dubai at Present

By Mohamed Whitesnow

The real estate sector in Dubai is showing nice prospects and today it would be a smart decision to buy properties in Dubai. The value of real estate is increasing gradually in Dubai due to the high tourist footfall and Dubai becoming one of the most important trading and holidaying destination of the world. The rental prospects of Dubai real estate are high as well, with a steady growth, that is becoming one of the main reasons for many to acquire a property in Dubai.

As one of the swiftest developing cities on the planet Dubai has become a brilliant prospect for investing money in the industry of developing houses. It is among the major holidaying locations for tourists from all around the globe, especially for those who can afford it. This is the motive for the growth in the industry of real estate in Dubai with important sites being chased after hotel and resort construction. If you are competent enough to buy some real estate in Dubai you will have the chance to benefit galore in the end.

Due to the large demand of real estate in Dubai, the prices have raised enormously with overpricing of properties becoming one of the major issues. The properties sector of Dubai has not been able to solve the problem of shortage of supply in comparison to the huge demand that is there in the market. For this reason, before you plan to buy Dubai real estate, do look for some help from professionals to understand the correct value and growth prospective of this real estate. Without proper professional help, you may end up buying a property with an exaggerated price and low future potential.

When you compare the availability of apartments and villas in Dubai, you will find that there is a huge supply of high-rise apartments in Dubai but a very high demand and low supply for the villas. This is because villas take up more resources in terms of square footage area. Moreover, the difference of cost between a high-rise apartment and a small villa is very less, thus, most buyers opt for the villas as their prospective Dubai real estate than apartments.

If you are looking to invest in villas then you can check out the Jumeirah Beach Residence property in Dubai. It is one of the largest commercial and residential projects of the world with a capital of about 5.8 billion UAE Dirhams. There are numerous hotels in this region, which makes acquisition of villas in JBR one of the wisest investments in Dubai property. In terms of Gross Domestic Product, real estate market in Dubai has shown real improvement in the past decade and it seems that 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 property 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.

Be wise enough to do a good research into the matter about the piece of real estate that you are going to purchase in Dubai as many times due to the great demand there is always the probability of excessive price tags of estate becomes a real reason for distress in Dubai. Either way of hiring it out or selling it again you can make a great proceeds from your piece of real estate in Dubai as as an expenditure on property for a long time because the cost of these pieces of estate will greatly develop with time. As per background details studied upon by those expert in the field of economy proclaim the growing cost of home in Dubai is can reach up to 15% as per every year.

Always be careful about the community area in which you are acquiring your real estate in Dubai will surely develop in value. The worth of the property will definitely increase for a building or apartment if it is positioned in a popular commercial area. The market for developing houses is a right step to take for investment. Even if you are purchasing the land with the security of a loan the money you will make from rents for your home will be quite enough for it to be repaid and very soon you will see that you are earning quite a lot from it.

A final note on how the worldwide financial depression affected the property prices in Dubai. As most of you have expected the prices have dropped a lot. So the end of the third quarter of 2009 may be considered as the right time to start purchasing real estate assets in Dubai with a normal price. - 23196

About the Author:

Follow the link to find adverts of property for sale in Dubai submited on daily basis. Mr Muhamed Whitesnow is an enterprenuer activating in the area of Dubai real estate. Keep in mind that Dubai is a great place for investing if you do it the right way.