Triangle Formations In Currency 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.

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 also known as Wedges. There are basically three types of triangles: 1) Ascending, 2) Descending and 3) Symmetrical. 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.

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. 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? 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.

There are buyers who believe very strongly that the currency price should rise based on their own reasons when the prices retreat from their high and are on the way down. 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.

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.

The horizontal lower boundary of the triangle represents the support level and it is formed by connecting at least two price points. 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. - 23159

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!

Inflation Can Help And Hurt

By Mike Swanson

Inflation is a term that often has a negative connotation for stock market beginners. We hear the word and it makes us shudder. No one wants to pay more today for a product that we bought yesterday for a lower price. However, inflation is not always bad. In real estate, inflation can increase the value of our home while we pay the same mortgage payment.

The following example shows how inflation can actually be helpful.

Rob and Mary bought a little house in 1991 for fifty eight thousand dollars. Their payments, including taxes and insurance were four hundred forty dollars each month.

In 2005, the value of their home had increased two hundred nine thousand dollars. Their payments have also increased due to an increase in the homes assessed value and insurance rates. Their total payment in 2005 is five hundred and forty dollars.

In this case, inflation has been helpful to Rob and Mary. Their home is now worth more than when they bought it and the home payment has not made a significant increase.

Bob and Marie list the property for sale, but it does not immediately sell. The market for real-estate quickly turns sour and they watch the value of their home drop. Eventually it is appraised at one hundred thirty thousand dollars and they decide to wait to sell. Although the payment remains constant, they are no longer seeing the benefits of inflation.

Runaway inflation is hurtful for most people. For those on fixed incomes, it is especially difficult. However, some inflation helps our lives to flow smoothly.

What we really desire is to see balanced inflation. The prices of things grow gradually along with our paycheck as well as the value of our property. - 23159

About the Author:

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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.

Current investing is the name of the game for BlackHorse Fund, a private California-based Forex fund. It strives to create substantial ROI for its investors through successful trades that are achieved by tapping into the knowledge and best practices of veteran investors

Forex is a huge and liquid market, necessary to the world's economy. Trillions of dollars of currency are bought and sold each day by savvy investors who buy one currency and sell another and wait for those currencies to change in value.

For investors who are used to stocks and bonds, the currency market might seem less like foreign exchange and more like a foreign language! But to the practiced eye, it is a vast opportunity for wealth building. The reason that Forex investors tend to do well in this market is not because of their own experience but rather because they pooled their money with other investors and rely on an experienced trading team to do the trades on their behalf.

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.

Experience is only half of the story at BlackHorse Fund. The other half of the story is their technique: The team combines their experience with specific best practices and a proprietary algorithm that has proven to be extremely market-intuitive.

And how have BlackHorse Fund investors fared? By combining the experience of their team and the proprietary algorithm, BlackHorse Fund has delivered a substantial double-digit percentage return to investors.

This private fund is managed by BlackHorse Management LLC and is made up of these managers as well as a group of limited partners who each invest a minimum sum of money into this exclusive fund. While new investors are occasionally invited to join, membership is exclusive and based on an exhaustive process. - 23159

About the Author:

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

The Golden Opportunity of Investment in the Real Estate Sector of Dubai

By Mohamed Whitesnow

The property market in Dubai is displaying great potential and considering this it would be a clever choice to own a property in Dubai. The price of Dubai land is on the rise because of the great tourist crowds and Dubai coming to be among the most popular dealing and holiday places on the planet. The rental prospects of a property in Dubai are quite good as well, with a steady progress that is becoming the major basis for many to look for real estate in Dubai.

Being among the fastest extending cities in the world Dubai has become a great alternative for investing money in the industry of developing houses. It is among the major holidaying sites for tourists from all around the globe, especially for those who feel that money is not a burden. This is the explanation for the increase in the industry of real estate in Dubai with key spots being hunted for hotel and resort development. If you are competent enough to pay money for real estate in Dubai you will be able to earn a lot of money.

One of the major subjects that now are a cause for concern is the extra pricing of real estate property in Dubai. This is because the construction industry has not been able to grow in as fast a rate as its demand shot up. Land in Dubai are being sought for ownership at a fast rate and later sold again at a big price tag topping the original price greatly making somewhat tricky to assess its true cost. Consequently it is a better choice to confer with experts in the field of property before you opt for a house in Dubai.

The existence of an imbalance between the villas and the high-rise apartments is due to a low price difference between villas and apartments and the requirement of high resources in terms of square meeter area for the construction of villa. Thus, the villa has become one of the most sought after property in Dubai, with high demand and low supply.

If you are looking to invest in villas then you can check out the Jumeirah Beach Residence area in Dubai. It is among the largest residential and commercial projects of the world with an investment of nearly 1.65 billion US Dollars. There are numerous hotel buildings in this region, which makes purchase of property in Jumeirah Beach Residence one of the best investments in real estate in Dubai. In terms of Gross Domestic Product, real estate market and property in Dubai has shown considerable improvement in the past few years and it seems that it grows further in the future.

Currently the amount of money made from rental fee is around 8 to 11% of the actual price of the acreage. Thus you can rightly propose that the real estate sector of Dubai has large hopes, you can with proper instruction from experienced and experts in the field of real estate in Dubai invest in high rising apartments. You can also venture out on your own your own study of the market about the land cost by going through various websites and thus decide on your perfect apartment investment.

Be wise enough to do a well researched background analysis about the estate that you are going to purchase in Dubai as more often than not due to the great demand there is always the probability of excessive price tags of real estate becomes a real reason for distress in Dubai. Whatever may be the case, renting out or reselling the property you can make a huge turnovers from your apartment in Dubai as as an expenditure on property for a long time because the value of these homes will surely increase in a couple of years. According to what researches done and thought upon by those in the field of economy claim the growing cost of properties in Dubai is can reach up to 15% as per every year.

Do ensure that you are buying Dubai property that have future growth potential. It is better to opt for Dubai real estate, which is in the developing area rather than the developed area. This is because, after development, the prices of the property will surely increase. Moreover, the chances that the real estate in the developed areas will be overpriced are high. You can easily opt for Dubai property through a loan. It is risk free because the rent that you are going to receive from your Dubai property will pay for the loan and give you a huge profit.

And the last thing you should know is how the worldwide economic depression influenced the cost of Dubai property. As most of you have expected the prices have dropped slightly. So the end of the third quarter of 2009 may be the right time to start purchasing property in Dubai with a normal price. - 23159

About the Author:

Muhamed Whitesnow is a businessman hired by the Dubai Bulletin Board a free Dubai Classifieds listing adverts of Freehold Dubai Property for Sale and to Rent.

Forex Education: Must-Dos for Beginners

By Bart Icles

It has often been said that the foreign exchange market offers a lot of great rewards to investors. However, those who choose to engage in the currency trading must bear in mind that large sums of profits come with great risks. In the long term, forex investors would often realize more losses than profits. Nevertheless, there are still lots and lots of people who continue to join this very exciting form of trading. Many beginners ask if there is a way for them to manage risks wisely as they try to increase their possibilities of making profits. In fact there is. A good start is to invest in forex education.

In the volatile environment of the forex market, one of the most important things that can help investors in managing risks is the quality of forex education that they have received. It is important that forex investors must be able to learn currency trading basics and secrets, as well as must-dos as part of their forex education.

Investing in your forex education is just a start but it is also one of the most important steps you can take in forex risk management. If you are planning to invest in the foreign exchange market, you will need to hone your knowledge and skills in forex trading through seminars, video tutorials, workshops, online tutorials, and books.

You will also need to learn more about different kinds of forex trading systems. It helps to research more about the different kinds of systems from different brokers before you finally choose one that you will use as you deal with the changing forex rates. Forex trading systems can help a lot in reducing the difficulty of the whole task of forex trading with the aid of some computer automations like charting and auto trades.

As a beginner, you will also need to have a trading plan. You will need to determine your objectives in trading, as well as the details of such objectives. Another thing you must consider is the amount of profit that you expect to realize from trading. It also helps to plan on the amount of money that you will invest on the market, what price levels would signal your exit, when to execute stop loss orders, and the level of affordable risk. All these are pretty much the parts of a trading plan. Should your trading plan start to fail, it helps to review it so you can make the necessary adjustments. - 23159

About the Author:

A forex ger is a powerful tool in your forex education. Many people are becoming interested in forex trading. Visit our site and today to learn more yourself.