Triangle Formations (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: It is basically a bullish signal when you see an ascending triangle on the chart. An ascending triangle can be easily identified by its upward sloping trendline. This upward sloping trendline creates the lower boundary of the ascending triangle. An ascending triangle can be either a continuation or reversal pattern.

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

Descending Triangles: Even though it can be a continuation or reversal pattern, a descending triangle is viewed as a bearish formation. A descending triangle and an ascending triangle are the opposite of each other.

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. - 23221

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!

Secrets To Buying Stocks

By Mike Swanson

It's a no brainer that there is money to be made investing in stocks. But then it is just as likely you can lose money. The key is to pick stocks that will perform as you want. There are three terms that you may not have heard of and why they are important to you.

DEAD CAT BOUNCE: This is the effect seen when a stock price rises after a sustained period of downward movement. Often people start to buy again thinking the turn around has happened and then the stock drops even further.

What does it mean for me for stock trading? Because no one can predict when a decline will reverse don't rush in. But it may provide you a window to make trading gains while the stock is in this pattern.

A BELLWETHER STOCK: This is a stock (or security) that usually signals the direction the market will take.

Why is this important to me? These stocks usually have a large percentage ownership by institutional investors - the big boys on the scene. While these stocks may signal the direction of the market they may not be the most attractive investment choice for those wishing to make gains. They are useful to watch however to get a feel of what might happen next.

THE JANUARY EFFECT: this is pattern that is often seen at the beginning of the calendar year when markets traditionally rise. Often the rise starts in the last few days of December and strengthens through January. Sometimes this is due to tax implications and psychological influences of the investor.

Why is this important to me? While research shows the effect to be real, it is hard to turn these gains into profits. The chances have become less and less. However it is important to be aware of this phenomenon so that if an opportunity presents itself, you may be lucky to be able to take advantage of it. - 23221

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A Historical Look At Guaranteed Investment Certificates

By Amy Nutt

Guaranteed investment Certificates, (GIC) are Canadian investments that provide a guaranteed rate of return over a fixed period of time. GICs are normally provided by banks, credit unions, and trust companies.

The earliest forms of guaranteed fixed-income investments included such investments as bank notes and mutual funds. The first Canadian fund, Canadian Investment Fund Ltd. (CIF), was established in 1932. It changed its name to Spectrum United Canadian Investment Fund in 1996, and this fund changed name at the end of August 2002 to CI Canadian Investment Fund. Investing in guaranteed investment certificates, or GICs, has been the safe and sound choice from the time when registered retirement savings plans became available in 1957. GICs were created to give people a guaranteed return on an investment. Back in the 1970's, interest rates on investments were higher averaging about 7.7 per cent and as much as 15.8 per cent in 1982. Part of that high interest rate was due to higher price inflation than today.

Interest rates are lower now. Over the past five years, GICs with a five-year term have paid an average of less than 3 per cent a year. Because Guaranteed Investment Certificates are low risk, there is normally a lower rate of return. With a GIC, the financial institution will borrow the person's money for a specified amount of time which can be six months, one year, two years, or up to 10 years. When the GIC period has ended, your initial investment will be returned plus any accrued interest.

To own a GIC you must deposit at least $500.00. When the period has ended, one can then cash them as taxable income or renew it for another term. If you cash out before the term as ended, you will be required to pay a fee. GICs tend to pay a higher interest rate than bank savings accounts, but less most other investments. Interest rates tend to range from 1-9%.

There are other types of GICs such as Market Growth GICs. Their interest rates depend on the rate of growth in the stock market. This is a bit more risky as the market rates tend to fluctuate. Just like regular GICs, Market Growth GICs are low-risk because your original investment is guaranteed to be returned.

GICs are a popular investment choice due to their safety and security, guaranteed growth. (The interest rate is guaranteed with fixed-rate GICs,) flexible terms, and flexible payments. With some GICs, you can decide how you collect the interest you earn, such as monthly, annually or at maturity.

Guaranteed Investment Certificates make for a sound investment if you want a protected place to save your money. GICs could be used as a part of a fixed income portion of your portfolio, used for retirement supplemental income, or just to hold your money until you come up with a number of long-term financial strategies.

Guaranteed Investment Certificates have had a long history of providing Canadians with low risk financial planning investments for retirement or other investment endeavors. Investment portfolios will benefit from having an investment with a guaranteed rate of return. As well, these investments are often selected during periods of market volatility. - 23221

About the Author:

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Understanding The Gold Standard

By Alyssa Rogers

The gold standard refers to the use of gold as the "insurance" to back what a country's paper currency was actually worth - if there was no physical asset to support the value of the paper, well, the dollar bill in your wallet was worth just that - paper. The gold standard has been in use in one form or another since the earliest days of coinage when rulers minted coins and the value of a coin was the intrinsic value of the gold or other precious metal contained within it. Stamping the head and name of the king or emperor whose treasury issued the coinage was not just a political statement as to who was boss, but also a symbol of quality control - you have one of my coins, I am saying it has this much gold included in it!

Pirates operating in the Caribbean raided Spanish treasure ships taking gold cargo back to the Old World - the problem was that their ill-gotten gains were too large a denomination to spend, especially when it came time to settling their bar tabs. As the gold was in a form which meant uniform purity and weight, the pirates and landlords of the inns they frequented would break the large standard gold coins up in to eight pieces - this is the origin of the pirate phrase, "Pieces of Eight".

In the middle of the Second World War, the Allies and most everyone else who was not on the German/Japanese side, met and thrashed out the Bretton Woods Agreement which laid out the financial foundations for the world for after the hostilities. Underpinning every country's currency was a tie to a "gold standard" - and within the range that was established a country could only issue so much currency in relation to its gold reserves. This arrangement continued until 1971 when gold lost its luster and Black Gold - oil - replaced it as the effective asset backing many of the world's currencies including the US Dollar.

The need for gold to support the "real" value of the paper currency issued meant that country's had to accumulate and maintain bullion reserves of gold. You may remember the James Bond film, Goldfinger and an audacious plot to raid Fort Knox in Kentucky. Though it was a fictional film, Fort Knox is certainly not and along with the Federal Reserve Bank in New York, the US maintains enormous gold reserves required to support the US dollar - but it is not only the US that stores gold at these locations, friendly countries with close trading ties also maintain their gold reserves at these locations to, and while the gold standard does not apply as it once did, these reserves of gold bullion still play an enormous part in the global economy and how nations do business with each other.

The last country to be tied to the gold standard was Switzerland who dropped the standard in 1999, but after the recent economic upheaval and the almost total, global banking collapse, there are renewed calls for the gold standard to be re-introduced once again. - 23221

About the Author:

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Purchasing Investment Real Estate in Dubai

By Mohamed Whitesnow

Dubai has certainly become the land of opportunity with trade and business flourishing like never before and the city growing at a tremendous rate. At present, it seems wise to invest in a real estate in Dubai because the real estate property area is showing great prospects with prices of residential and commercial real estate rising at a very fast rate. It is not possible to ignore the potential of the property market of Dubai, with many buying properties for future income. Rental income from real estate in Dubai is increasing and it is better to invest here rather then anywhere else.

Being among the fastest growing cities on the globe Dubai has become a very good choice for investment in real estate. It is one of the best cruising destinations for rich tourists. This is the reason for the boom in the sector of real estate of Dubai with prime locations being sought after for hotel and resort construction. If you are able to invest in Dubai property, you will be able to reap its prospects.

One of the key topics that at the moment are a cause for concern is the dread of over the top charges of real estate in Dubai. This is because the real estate industry has been unable to supply the market with new buildings fast enough to cover the demand. Land in Dubai are being bought quickly and placed for resale at a over-the-top cost making somewhat tricky to assess its genuine price. So it is advised to confer with qualified persons in the industry of real estate before you go for a piece of estate in Dubai.

There is a great disparity with concern to the evaluation between the accessibility of apartments and villas in Dubai. The Real Estate division of Dubai have not been able to meet the demand of villas meanwhile providing enough availability of the apartments. The exact area of the place and the conveniences are the important basis why realtors are pursuing high up apartment buildings as a better option than one storey houses.

If you are looking to invest in houses then you can check out the Jumeirah Beach Residence property in Dubai. It is within the largest commercial and residential projects of the world with an investment of nearly U.S. $ 1.6 billion. There are a number of hotel buildings in this area, which makes investment in JBR one of the best investments in Dubai real estate. In terms of Gross Domestic Product, real estate market in Dubai has shown real improvement in the past few years and it seems that it grows further in the future.

At present, the income from rent is nearly 6 to 10% of the value of the real estate in Dubai. Therefore, you can clearly say that the real estate sector of Dubai has huge prospects you can easily invest in the high-rise apartments with proper guidance from the local investment groups and reputed realtors that are available in Dubai. You can also conduct your own market research about the property cost through the Internet and thus settle on your choice of apartment.

Always do a well researched background analysis about the land that you are going to invest in in Dubai as often due to the high requirement there may be possibilities of excessive price tags of estate may become a reason for apprehension in Dubai. Either way of hiring it out or selling it again you can make a great proceeds from your property in Dubai as an investment for a long time because the cost of these pieces of estate will surely increase in sometime. As per studies conducted and researched on by experts say the growing cost of real estate in Dubai is in all probability is 10% yearly.

Always be careful about the location in which you are obtaining your land in Dubai has the capability to grow in worth. The worth of the property will certainly increase for a villa or a flat if its location is near a place of entertainment. The industry of property is a right step to take for investment. Even if you are obtaining the land with assistance of a loan from somewhere the money from renting it out for your home will be quite enough for it to be repaid you will soon see that you are making quite a sum of profit from the property.

Dubai has not escaped the worldwide economic depression and the real estate prices have dropped slightly in Dubai. The situation is calming lately with the prognoses of properties prices stabilization starting from Autumn 2009. - 23221

About the Author:

Follow the link to get listings of property for sale in Dubai submited daily. Mr Muhamed Whitesnow is a business man functioning in the area of Dubai property. Keep in mind that Dubai is a great place for real estate investments if you do it the right way.