Trading Strategy - Descending Triangles Downside Breakout

By Jeff Cartridge

The descending triangle can be traded very successfully on the short side entering the trade as the stock breaks out of the pattern to the downside. The pattern forms when the two boundary lines that contain the price movement converge to a point. The top line slopes down toward the bottom line which is horizontal.

Descending Triangles, One Of The Best

Descending triangles are one of the most predictable patterns that are available to trade short. With 57% of the patterns breaking down descending triangles can deliver good returns when they do. The average gain is 0.92% in 9 days with about half of the breakouts (45%) being profitable. These results are good but selecting the right conditions can make trading descending triangles very attractive.

Specific Setups to Improve Profitability

When you look at the performance of a descending triangle in bearish market conditions you will see the results were stronger than they were in more bullish years. Trading descending triangles when the market is in a down trend or consolidating improves your trading results. The sector should be falling to make the most profits. Unusually the trend of the sector at the end of the pattern, prior to the breakout is less important than the sector trend at the start of the pattern.

Descending triangles that breakout early in the pattern, produce similar results to those that breakout later, so this is not an important filter to use. The best results are achieved when the stock climbs up from the lower boundary and collapses back before reaching the upper boundary of the pattern.

Ensure that the volume is supportive of the breakout, i.e. volume as the share falls is greater than volume as the share rises.

Descending Triangles, Profitable When the Markets Is Not

You can improve your trading results by using a series of simple filters that have been outlined here. This select group of descending triangles delivers an average profit of 2.55% in 10 days and is profitable on 48% of the trades. Overall this makes descending triangles extremely attractive to trade.

Note: Statistics for this article have been provided by Patterns Trader after analyzing over 60,000 chart patterns on the Australian market from 2000 - 2008. - 23229

About the Author:

Jeff Cartridge is a private trader and created the website LearnCFDs.com Ways to Make Serious Money With A Small Investment

Always Draw Correct Trendlines

By Ahmad Hassam

Learning currency trading is like building a new car from scratch without an instruction manual for new traders. Many of them acquire quality parts like brakes, wheels, motors, seats, steering wheels etc to build the car.

To become a successful trader you need right parts with right instructions to put them together. After all, a part such as a $2.00 gasket can bring your car to a screeching halt.

Understand that forex trading is very different from trading stocks. Companies can file for bankruptcies like Enron or GM or Goldman Sachs. Companies go completely out of business taking their share value to zero. However in case of currencies, there is no threat of a country going bankrupt. The only thing that can happen is a loan default by a poor country.

Trade balances and budget deficits play a role in determining the price of a currency. What can happen is that trade balances and foreign capital inflows can cause severe economic pressures on a currency! This can create dramatic changes between the currency values relative to other currencies. When that happens, it can be an incredible financial opportunity for savvy, educated currency traders.

Before you enter the markets, you should learn how to find the current trend. For a skilled and educated trader, learning how to spot a trend is very important. A trend can last from a few hours, several days or several months. It can create an enormous financial return for the savvy.

You should always trade in the direction of the market. Fighting a trend is like swimming against the current. Traders can make many mistakes. The biggest mistake is trading in the wrong direction.

Suppose you are an active trader. You dont have the trading software that has the moving trend line indicator. An incorrectly drawn trendline can be the difference between making and losing money in a trade. You will need to learn the skill of drawing correct Trendlines.

There are three types of trend lines. 1) An Inner Trendline. 2) An Outer Trendline and 3) A Long Term Trendline. These three trendlines form on all time frames and in both uptrends and downtrends.

In any uptrend draw a straight line connecting levels of support without penetrating bodies or wicks of a candle. Correctly drawn trendlines can project future levels of potential support in an uptrend and future levels of resistance in a downtrend.

Draw inner uptrendlines by finding the last two support levels and drawing the line from left to right. Likewise, draw the outer uptrendline by starting at the far left of the chart. Move to the right connecting the majority of the support levels with a straight line.

Go on a larger time frame like daily or weekly. Draw the longerterm trendline by connecting the support levels starting from the far left of the chart moving forward. Instead of a support level, use the resistance level to draw trendlines in a downtrend. That means all the rules are the same but in the opposite direction. The market reacts the same way in a downtrend as an uptrend but in an opposite direction. - 23229

About the Author:

Mr. Ahmad Hassam is a Harvard University Graduate. He is interested in day trading and swing trading stocks and currencies. Discover A Revolutionary New Forex Robot. Develop your own Forex Trading System.

Important Penny Stock Info

By Rashel Dan

Operating penny shares is like going into an auction. How does it start? An asking price is set at the lowest value and then when the bidding starts, the price rises. If you're the seller, you check your starting price and compare it with the current bid. If your selling price is met, you trade and then the transaction is closed. The difference with an auction is that the price doesn't go down. Stock prices do. Today there a number of techniques being developed to monitor your penny stock info and bidding.

Research - Any active stock investor would tell you that you have to do your own research. While penny stock advisors and brokerage firms help in facilitating your sale, it is always helpful to have your penny stock info ready when needed. The more you know, the better your opportunity to gain profit. The more you understand the trade, the lesser your chances of falling into the pit.

Because of the availability of free information in the internet though, it can be a bit difficult to make decisions. Especially if you are new to the business, experience is your better half. Be attentive and be very alert about fabricated information. This is a trading business and it involves money. You have to be able to know which penny stock info is reliable for your use.

There are softwares that are being developed to help small cap investors and stock brokers monitor the stocks. The moment your stocks are pegged, it can be a roller coaster ride. Thus you need to stay close to the facts and observe your investment in the penny stock market. Here are some tips and information about how the transactions are made:

- Buying Penny Stocks - Set your funds ready and be sure you'll be able to pay the shares and your stock broker's commission.

- The Ticker Symbols - These are initials or abbreviations of companies that are selling their shares to the public stock exchange. This is standardized for easy management, inventory, and recall.

- Stock Exchange - The more dependable stocks are being traded in major stock exchange. Examples are NASDAQ, NYSE, and AMEX.

- Volume of Shares - Of course, you must be clear on your penny stock info sheets how much of the shares you want to buy or sell. But beware and don't fall into extra commissions being charged to you.

- Open and Closing Dates. These are dates that you set your stock to be available for sale. This must also include active dates (dates when your shares are still open for bid) and the date when you hope to close your stocks.

- Selling Your Penny Stocks - It is important to take note of the above mentioned - the volume of shares to sell, ticker symbol, names of the stock and the stock exchange.

- Share Price and the Dates - Again it is important not to miss out the selling price and the time span to which your stocks are active and open for bidding.

There are still so many things to mention. But this article doesn't intend to give you any penny stock info overload. Too much technical knowledge may not be a good practice. Take this investment carefully. Your penny stocks are good money and therefore delicate. Make haste slowly. - 23229

About the Author:

Begin your career in penny stock trading. Find reliable penny stock info online.

A Forex Tutorial on Opening a Forex Account

By Bart Icles

Before you can start trading in the foreign exchange market, you must first be able to open and setup an account. Any forex tutorial will tell you that having a forex account is a prerequisite to trading. Very much like in trading in the equity market, currency trading will require you to open a trading account.

Each forex account, as well as the services that come with it, is different. Therefore, it is important that you are able to determine which one would best suit you. One of the things that will tell you more about the account you are about to open is leverage. Leverage is simply the ability to manage and influence large sums of capital using a relatively small amount of your own capital. One has to remember that the higher leverage means higher levels of risk.

Nevertheless, many forex investors see leverage as a major currency trading benefit because it can allow you to reap large gains even with just minor investments. On the other hand, leverage can also make you lose more than what you have invested if trading moves against you. Although there are firms that have protective stops to keep an account from going negative, it still helps to exercise extra caution. It also helps to remember these two contradicting scenarios when you try to determine your desired leverage when opening a forex account.

Commissions and fees also make trading accounts different. Major forex accounts normally allow you to trade without having to pay a commission fee to the broker. This is possible because in forex trading, you are dealing directly with market makers and you do not need to go through brokers. However, this does not mean that market makers do not earn money each time you engage in trading. When a trade is made, market makers gain the difference between the bid and ask prices.

There are many ways in which forex firms and the accounts that they offer can differ from one another. It is therefore recommended that you carefully evaluate each firm that you potentially would want to deal with before you commit to them. If you look back to your forex tutorial, it will remind you that each firm will deliver different programs, levels of services, and fees that can be above and beyond the actual trading costs. What is important is that you are able to review them well before making a decision, and when you do, see to it that you are dealing with a reputable firm. - 23229

About the Author:

Finding a good forex strategy builder starts with a desire to learn and a drive to become a great trader. Learning forex trading 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.

Online Stock Trading Software Analysis

By Reginald Shiver

Are there any lucrative and genuine online Forex trading software and where can you download them? Having tested numerous currency trading systems and software, I have started to realize that most of them are not profitable over the long term although their systems' reasons makes accurate sense. They are usually disguised as some influential system and software by intelligent marketers who appear to make good proceeds by selling them to naive traders.

Moreover, there are a few authentic Forex programs and software that are really precious and work to create wealth in the long term. Their owners generally provide useful lifetime maintenance to update their customers regarding the latest market trends.

1. How to Make Bucks with an article of Genuine Online Forex Trading Software?

A few of the best currency devices comprise software that can assist its users study market trends and even generates deals and produces money mechanically for its users. The entire package that I use provides me with a basic training on forex trading and what I need to do to get in progress earning money from currencies business. It must give you a clearer knowledge of Forex trading and also introduce you to a complete host of devices and software that can make your trading processes easier.

2. What Are the Most Common disadvantages of Online Forex Trading Software?

Nearly all programs and techniques will require their users to learn and study difficult mechanical charts and terms needlessly. These complicated investigations courses can generally be eliminated with the correct trading systems and software programs. These are the exact type of devices that make huge financial organizations large income everyday, and dealers worldwide are constantly searching for the most beneficial Forex software. I currently use a software course also known as an Expert Advisor that earns me income constantly each single month. - 23229

About the Author:

Now hear carefully, if you are ready to make a lot of money in Forex, earning more pips than you ever imagined completely on autopilot, then you must visit Chris Rowe's Internal Strength System.