When You Learn Technical Analysis, Don't Forget The Ascending Continuation Triangle

By Chris Blanchet

One of the more important Classic Patterns in the Learn Technical Analysis Free Series is the Ascending Continuation Triangle. Unlike other Classic Patterns, this one is a little more difficult to spot as it will take its form after two trading-range highs that appear to form a resistance level are joined by a horizontal trendline and two higher lows of the same range are joined by a rising trendline (our site has a visual for this pattern, so please feel free to stop by for a visit).

For investors who want to learn technical analysis, the Ascending Continuation Triangle is an important pattern as it provides us with a Bullish trading signal. Since the pattern is normally a short-term pattern that takes shape over one to three months, investors are able to quickly lock in gains and reverse their position without much loss.

For investors who are just starting to learn technical analysis, remaining patient as the pattern takes shape is often more difficult than spotting the pattern itself. To confirm the pattern, here are a few things one should look for.

Volume

This is considered one of the most important factors when confirming this pattern. What investors need to see is that volume diminishes as the pattern takes shape and then spikes at breakout (pattern confirmation). Conversely, if there is no spike at breakout, then the pattern is considered less reliable or even false.

Moving Average

When prices are close to or touch the 200-day moving average, the pattern is considered to have greater reliability.

Duration

Duration also needs to considered, something many investors who have just started to learn technical analysis tend to forget. Break-out will happen when the price penetrates the upper horizontal line (e.g. the resistance line), but this occurrence should happen long before the pattern reaches the apex, or right-side tip of the triangle. Generally speaking, this break-out should occur between three-quarters to two-thirds of the way along upper line.

As far as providing a fundamental explanation for why this pattern occurs, investors should consider a company or a institutional investor who wants to offload a large quantity of stock at a pre-determined price level. As the stock price reaches such a level, buyers will draw on the large supply and will consequently push the price down, forming something of a resistance level. However, as prices bounce back and the supply is depleted, the price will shoot through the previous resistance levels to new highs. This is exactly what we like to see when we start to learn technical analysis -- the perfect end to a classic pattern. - 23204

About the Author:

For investors who want to learn technical analysis free and receive two free stock picks every week that exemplify the signals discussed in the Series, visit Online Trader Today.com.

An Insight Into Drip Investment

By Mr Christopher Latter

Drips are generally sponsored to the citizens who are ingenuous investors. drip investment is very profitable indeed. They are not a suitable 1st time investment as one does not get that diversification. Original investors must not begin out purchasing individual stocks. They must start out to buy at very less cost index mutual funds.

Timing is the most important thing in the stock investment. This also applies to drip investment as well. Time never depends on acquiring the required basic information of the company. It never depends on the computer tools, investment devices that help you in choosing stocks. Time is independent of the N Y S E (New York Stock Exchange) i.e. it does not depend on the obtaining the seat in the exchange to discuss various strategies and plots.

You might be wondering what is the definition of a drip is. Drip Investment is nothing but the Dividend Reinvestment plan. Where can I get drips? The answer is you can get them by consulting an elective agent appointed by the company itself. There would be no brokers, mediators and other types of financial consultants. There are some companies that do not issue drips. For such companies many brokers and financial consultants provide pseudo drips that are virtual drips with all the benefits but provided by the third party. The thing common and a good one about both the drips and the pseudo drips is that you do not have to incur any extra costs for reinvesting the gains you get.

Cost standardizing is the main idea which makes Drip investment powerful. This plan is all about creating many users over a time period. There would be a decrease in the risk due to this. This is the reason why more and more people are getting interested in drips. There is wrong feeling that these plans are perfect for everybody, this is not always right because there are certain limitations in it as well.

Even though there are many ways to work about each, the restrictions are needed to be implicit. Every drip investment plan has least purchase amounts. This does not mean that one is need to purchase every month, but when some buys are done, the sum should be as a minimum as the sum.

Regularly, the instant answer is to put away one's capital over the line of many months till one can pay for to put together the least buy. Even though this can be completed, the disadvantage is that by doing so boosts the risk. If you are incapable of making usual purchases as of an elevated least purchase sum, one needs to realize the degree to which one is compromising the power of the strategy.

It would be very wise if you put a break on your spending. Do not use credit cards and stop leading a debt life. It would be good to save more money and invest in drips so that it can be utilized to earn cumulative profits over the years.

The money required to move your investing capital is quite lower. Some companies provide the buyers with better options to maximize profit from the drips. So you should be able to choose the right drip based on your priorities and the potential of the company. You should take your decision based on the time you would like to operate. If you are out there hoping for a large sum of money in a quick time then drip investment would not be your cup of tea. - 23204

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Read more about Drip investment by visiting an archive of articles on this topic and other sources closely related to Drip investment.

A Quick Forex Trading Course on Forex Terms

By Bart Icles

The foreign currency exchange market is one complex environment wherein changes happen all of the time. When you are new to forex trading, you can pretty easily find yourself in the myriad of trading terms you need to understand and be familiar with. It can be helpful to learn as much as you can about these terms to help you make your forex trading life easier. Here is a quick forex trading course on some basic forex terms.

As a beginner in the forex trading world, there are some basic terms that you need to be familiar with. One of them is accrual. In forward exchange transactions, it is simply the actual selection of premiums and discounts in place that are known to be directly related to actual deposit swaps. These actual deposit swaps are referred to as interest arbitrage deals which take place over individual periods associated with a certain individual deal.

You also have to be familiar with what adjustments are. Adjustments describe official actions done to correct any imbalance that may take place in actual payments. Adjustments are also made when there are changes in official currency rates.

Another term that you would often here in the forex trading marketplace is appreciation. This refers to the strengthening of the actual price of a certain currency in response to the demands of the market.

While in the forex market, you may also come across the term "balance of trade". This refers to the difference in the actual value of a certain country's exports and its imports. There is also what forex traders call the bar chart. Bar charts have both vertical and horizontal lines. The points in the vertical bars are the highs and the lows in currency values while the points in the horizontal bars represent the opening and closing prices.

There are still a lot of terms used in forex trading that learning all of them normally takes a significant amount of time. It may be hard to keep up with all the terms that you need to know but reading more on forex trading courses can help you a lot. Also, these terms may seem to be self-explanatory but you should never take them from granted. As you spend more time trading in the forex market, you will realize that these different terms have value and they are important to the market. There are lots of resources in the internet and it is important that each time you come across a forex trading course, like one on terminologies, it is crucial that you learn the most out of them. - 23204

About the Author:

Your forex training starts with a desire to learn and a drive to become a great trader. Using forex trading training 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.

Secrets of Forex Mini Account Trading Revealed

By Tom OReilly

Forex mini accounts are ideal for just about anybody who is starting out in forex trading. You would have to be very rich or very confident to start right out with a standard account if you are a retail trader (i.e. somebody trading on their own account from home). A mini account lets you get started without risking so much money and this makes it a very attractive option for most people.

The normal lot size of currency is 100,000 in forex trading and mini forex trading accounts generally allow you to trade with 10,000 units or one tenth the normal lot size.

Because currency trading works with leverage, you do not have to have this much in your account. If you are using 100 times leverage then you need $1,000 to control $100,000 for a standard account and $100 to control $10,000 in your mini account.

$100 or 100 units of other currency per trade is enough for most people to commit to a trade when they are starting out and that is why the mini trading account is so attractive.

The pip size is also usually smaller in a mini account. Pips are units in which you will measure your profits, losses and costs (the spread). Their dollar value can vary depending on the currency pair that you are trading, the lot size and other conventions of your broker, but a common standard pip size is $10 and mini pip size is $1.

Some brokers are now quoting prices to 5 decimal places which technically would make one pip 0.00001 of the quoted price, but we will continue to use the standard 4 decimal place pip for this example.

So if you have a standard forex account you can expect to put up $1,000 on each trade, be involved in trading lots of $100,000 and measure your profits in $10 units.

If you have a forex mini account you can expect to commit $100 on each trade, be involved in trading lots of $10,000 and measure your profits in $1 units.

So that you do not have to risk all of the money that is committed to the trade, you can set stop losses. But your losses will be measured in terms of pips so these too will be 10 times greater in the standard account.

You may want to move up to trading greater sums if you are successful and your fund grows. By trading more than one lot at a time, you can still do this in your mini account. So you would just trade ten mini lots if you want to trade a standard lot size. Because your pip size is still just $1, this has the advantage of still giving you the ability for fine control of your stops.

The forex mini account is a development that has opened up the market to people who have the technology but not the money for standard currency trading investment. The standard account used to be all that was available before so many people had powerful home computers and high speed internet connections that made it possible for the ordinary person to trade from home.

If you want to risk even less of your money, you could look at forex micro accounts which allow you to make even smaller trades. Be aware though that the spread is often a little high and you might find it difficult to profit with a micro account. It may be better to use a demo account until your confidence builds and then open a forex mini account for real trading.

I'm sure you probably have a lot more questions about forex mini accounts... - 23204

About the Author:

If you would like free product reviews, tips and tutorials onIf you would likeex Mini Account Trading, click on http://daytradingthecurrencymarket.com/ and find out why If you would likeex trading is taking the world by storm.

A Managed Forex Account Gives You Investments With Protection.

By Roger K. Moxie

A complex beast to comprehend, the Forex market -short for foreign exchange, can provide you with huge monetary gains. You may view the symbol FX, this is also the abbreviated form of the exchange. Unless you're well versed in the market ahead of time, your best bet is to open a managed Forex account. This will ensure you don't get caught up in the verbiage and lose money over it. The Forex is the biggest exchange market on the globe; oddly it has no solid address.

Unlike Wall Street and the floor of the New York Stock exchange, there's nowhere to actually go to see the exchange in action. The Foreign Exchange operates solely through networking across the world. Banks and large companies tied to the banks keep the wheel rolling twenty four hours a day, seven days a week. You can make trades any time your heart desires. No waiting for market adjustments or having to wait for the opening of the market. How great is that?

The United States dollar sets the standard by which all other currency values are measured. The currency exchange is a tricky one that can rapidly move course. In the event of a political or social uprising, a country's currency can sharply decline if not negate itself. The market sees serious fluctuations during US federal elections. Your managed Forex account worth may change dramatically if you don't get rid of the currency in question. Good thing you have someone keeping an eye on these things!

Just like any other market, there are risks to the Forex market. It's a very complex market and many people prefer to leave the buying and selling of foreign currencies up to someone else. Brokers in the Forex market are unlike those in any other exchange. It can be very cumbersome to take on a broker. Seeing an opportunity to bridge the gap, management companies have popped up all across the globe.

When you choose to employ an account manager, you can find solace in the fact that your investments are being watched on a regular basis. Your managerial support will provide you with up to the minute information that may affect your investments. They will give guidance into what moves you need to make with your account. Never worry about your advisors being driven by the all mighty dollar, they are paid a flat fee for services.

Seek out a managing firm with proven results. Nobody is perfect and you can't win all the time, but when you see a lot of red, it's time to move on and look elsewhere. When your finances are involved, be careful of being targeted by thugs. There's always someone trying to make a quick buck and you must cover yourself.

Your managed Forex account advisor will give you all of the information that you need to make wise choices. They can give you market analysis until they are blue in the face, but in the end, it's all on your shoulders. When gaining information on trending market patterns, do what's safest. Stay focused when making these decisions. Don't let emotion get the best of you and sway your trading. Make sure you are solid in your decisions. It's like hitting the enter button on the computer, you give the ok to your account manager and there's no turning back.

When dabbling in the Forex market is scary or unsettling to you, don't give up on the whole thing. You can do extremely well with the assistance of an account manager. Let them guide you and your managed Forex account into prosperous times! - 23204

About the Author:

Roger helps you learn more about how to make a forex investment with a managed forex account.