Trading Strategy - Descending Triangles Downside Breakout

By Jeff Cartridge

Descending triangles have been very popular with traders on the short side and are not so often traded when it breaks in the upward direction. A descending triangle is defined by two lines, one on the lower boundary of the price movement which is horizontal and one on the upper side which slopes down.

Descending Triangles Best Traded Short

Most descending triangles would be expected to break down and in fact 57%, break out to the downside making this pattern best when traded on the short side. 45% of these breakouts are profitable and on average the profit per trade is 0.92% over a period of 9 days. A good proportion, 12.1% of these breakouts make a profit of 10% or more. The descending triangle is one of the best chart patterns when it breaks to the downside and applying some filters makes this pattern even more attractive to trade.

Refine Your Entries

Short breakouts work better in falling markets which is clear from the results that were achieved in 2002 and 2008, so the market should be falling or consolidating. The best results are achieved trading descending triangles when the sector is falling. For some reason the trend of the sector at the start of the pattern is more important than the trend of the sector prior to the breakout.

A breakout from a descending triangle can occur anywhere on the way to the point of the pattern; it is not important exactly where the breakout occurs. The best trades occur when a down side break occurs after the stock bounces off the lower boundary and drops back before hitting the upper boundary.

If the volume supports the breakout the results are better. Supportive volume means the volume on the way down is higher than the volume on the way up.

Descending Triangles Extremely Profitable

Following a series of simple rules to determine which descending triangle to trade can improve results dramatically. By applying these filters descending triangles are profitable on 48% of the trades and return an average of 2.55% per trade in 10 days. This is a very profitable pattern 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. - 23200

About the Author:

Jeff Cartridge is a private trader and created the website LearnCFDs.com Discover Chart Pattern Secrets

How Many Stock Brokerage Houses are Available Today

By Danny Jamerson

Many mistakes, many years later and stand before you is a man who knows about stock brokers. I've almost tried them all so I can quickly tell whether the interface is good or not, without making a single trade. Here's what I think about the different brokers.

Zecco still advertises stock trading at no cost, but the package it offers is a far cry from the unlimited free trades that it used to promote. Nonetheless, 10 free trades per month (for those that qualify) is still quite good.

OptionsHouse is relatively new but it's making headlines as it provides stock trades at $2.95 per trade. The options pricing is very attractive as well at $9.95 flat fee, making it one of the cheapest brokers out there. There's no bank or anything, but the cost may win you over.

TradeKing, while not the lowest price broker anymore, is still very good. It keeps winning awards like the Smart Money best discount broker award and others, all while maintaining their good pricing and awesome customer service.

OptionsXpress is cool because it focuses on options but they have since expanded into the arena of stocks. They do a fine job on the educational front as well.

Scottrade is not really promoting its business like it should but it does offer a solid platform for traders. At $7 a trade, it is middle of the pack in terms of price and middle of the pack in terms of features.

TD Ameritrade used to dominate but it is not very good. The interface is outdated and the pricing is high. I don't think they are gathering many new comers these days and just servicing old ones.

Etrade, despite its troubles with the mortgage industry is still one of the best stock brokers out there. It has a banking side where you can get high rates, it has a checking account where you can get free ATM withdraws anywhere and you can also trade stocks. - 23200

About the Author:

It was incredible to make so much money investing, but do you really know how it happened? Click Here to learn more about investing basics where it teaches you on stuff like investing terms so at least you sound like you know what you are talking about.

Is Forex Trading for you?

By Greg Cortez

Have been looking at making money online, investing, or work from home websites? You have have probably seen references to Forex trading. Forex trading online is the buying and selling of foreign currencies for profit. We will explore this investment/money making vehicle, it's benefits, and some of it's negatives as well.

Forex trading occurs 24 hours a day from Sunday through Friday. The market is global in scope, and can be rather exciting with it's dramatic swings. These dramatic changes in the value of different currencies is what creates the profit potential for traders. You can literally make a profitably trade (buy and sell) within seconds, or you can follow long-term trends over the course of a great many months. This flexibility is part of the attraction of the Forex market, whether you are an "action" news and signal trader, or a long-term trend follower, there is money to be made.

Also, due to the very considerable leverage provided by many Forex brokers, one can make considerable profits off of small investments. This makes trading attractive and very approachable to many people who do not have the money to make profitable trades in the stock and commodity markets. One can literally start with just a couple hundred dollars and go on to make a good income from Forex trading.

The Forex market is not perfect though, of course, and trading does not always result in profits. Due to the high leverage and sizeable swings in the currency market, it is quite possible to make a few bad trades and lose money rather quickly. Do note, regardless of the leverage, you can never lose more money than you put in your account to invest. However, this higher risk/reward trading is not for everyone.

With 24 hour access, great leverage, and a rapidly moving market, Forex trading offers many attractive qualities for making money and enjoying the experience. However, one must remember that there is risk involved, and there is never a guarantee of profits.

With 24 hour access, great leverage, and a rapidly moving market, Forex trading offers many attractive qualities for making money and enjoying the experience. However, one must remember that there is risk involved, and there is never a guarantee of profits. - 23200

About the Author:

If you want to explore more into Forex Trading, make sure you check Greg's Forex Forum, and Forex Information site

Forex Software Makes Speculation Easy

By Cecil Hopkins

I am sure, most of you when you read this word 'forex' would turn over the page showing no interest in the topic as you don't know what it is or might just read a line or two to know what forex is all about. In both the cases I am going to tell you about forex trading.

Well it's pretty simple forex stands for foreign exchange; it's also known as FX. When trading in forex you are buying one currency and at the same time selling another-that is, the sold currency is exchanged for the one you are buying. Forex is a busy faculty. Traders are on their toes every minute. They have to wait for signals and change their decisions at the drop of a hat. Huge profit can be made, and big losses can be made. Its part of the game.

Foreign exchange markets help international trade and investment. The biggest markets currently are the London, New York and Tokyo foreign exchanges. This is in terms of how much foreign currency they trade respectively. The UK is therefore the largest turnover market.

Any time there is political unrest in a country, you can see the currency rapidly lose its value. Whenever there is a Presidential election, the value of the U. S. Dollar fluctuates greatly, as well. It's hard to know when currency is going to gain or decline in value. A large deal of investing on the Forex is through speculation.

Forex trading is open 24 hours starting from Sydney and following the globe as the sun rises and the day begins. One should not forget FX is the most traded market in existence.

One can be trained for forex trading online and then can apply his/her sense and knowledge by downloading forex software 'FOREX STRATEGY BUILDERS' it's improvised software providing maximum tools to the users.

There are several major currency pairings that are most typically traded. These include the Euro and the US Dollar, the US Dollar and the Japanese Yen and the Great Britain Pound and the US Dollar. These trades that occur on the spot are usually settled within two business days of the trade. This helps make the Forex market one of the most liquid markets in the world.

The Forex market trades over three trillion dollars in currency each and every trading day. With this massive amount being traded, it is very easy to win big or lose big in the market. Unlike traditional trading markets, the Forex market uses brokers for every trade. These brokers do not earn commission based on the volume or amount of a trade. Instead, they get a flat rate for each trade or group of trades. This makes Forex brokers very reliable and many traders feel a great more trust in them than they would a standard stock broker.

The Forex market is the fastest moving market in the world. While it is completely unlike any other market, it is the most liquid and is open virtually 24/7. Trading on the Forex market is purely speculative. With the use of a Forex bot, you can greatly improve your chances of doing well. As with any financial decision, Forex trades should be carefully considered.

The question then remains who should go into Forex trading? With the constant improvement of these Forex trading soft wares it is now okay for anyone with a certain amount of money to invest to delve into it. Some trading companies accept as low as a $1000 minimum. - 23200

About the Author:

Essentially they speculate on how the FOREX currency might react, even if only for a short time (that's all they need) Backtesting System This is because the currency of that nation is not as secure in its value as more developed nations currency. This idea also applies to the foreign exchange market.

Automated Forex Trading System - The Advantages

By Jane MacRae

Automated forex trading is no longer a new idea to the players in this field.

Forex trading, or foreign exchange trading, is simply the buying and selling of the world's currencies. You buy when that currency is low, you sell when it is high, and you make a profit.

Do not be fooled by its simple concept, the actual forex trading process is filled with complexities. The forex market moves at a fast pace, and changes occur from time to time. An automated forex trading system can be just what you need to keep up.

An automated forex system, as said by its name, works to automate the process of currency trading. Probably to some people, a more hands-on, manual approach might seem like the best way to go. However, the benefits of using an automated system are something most players will not pass by.

1. It Never Sleeps

The forex market never sleeps. It is going strong 24 hours a day.

What about you? As an average person, you need to sleep, to eat, to entertain, to shop, to pick up your kids from school. There is no way you can monitor everything that happens on the forex market, all hours of the day and night, manually.

Now, with automated forex system, you can become more efficient. The system does not require breaks, and It can monitor the market changes restlessly. Even while you are sleeping, brushing your teeth, or running errands, your automated system can be making money for you.

2. It Undertakes Multiple Tasks

Not only the forex market moves fast, a lot of different things can happen at once. Even if you are sitting in front of your computer, diligently monitoring the market, you can still end up missing amazing opportunities.

An automated forex trading system does not have the same problem. No matter how fast something happens, no matter how many different things happen at the same time, your automated trading system will always catch them.

3. Emotions Can Not Find Their Ways In

Admitted, emotions can sometimes stop people from making rational decisions. On the forex market, where making the right split second decisions can mean the difference between making and losing money, being impulsive, indecisive, unsure, or rash can do you financial harm.

An automated forex system will never have problem with emotions. Once you tell the system what to do and when to do it (based on your knowledge of the market) those things will get done, and in a timely manner.

Many forex investors have already benefited from the automated forex trading system. If you are serious about your success in this market, you should invest some time to check out some of the really good software in the market. It is highly likely that you will get your investment back within weeks, if not days. - 23200

About the Author:

Click here for our review of a leading forex trading tool in the market, which will grant you a huge advantage over your competitors. Also check out this related article about forex currency trading beginners.