FAP Turbo

Make Over 90% Winning Trades Now!

Sunday, June 28, 2009

Securities Trading Based on a Triple Moving Average Crossover

By Chris Blanchet

When trying to make a decision on whether to buy or sell a particular security, the triple moving average crossover can often provide partial guidance. As one of the most basic technical indicators, this technical indicator can provide a buy or sell recommendation based on the direction of the crossover, allowing traders to open or close positions accordingly.

Moving Average (MA) Defined Based on the average value of a security, a moving average considers past closing prices over a given period of time. Since the MA is be based on historical prices, the lagging data must not be used in isolation. The longer the moving average, the more lagging it will be; the shorter the period, the less lag. As a result of this lag, the triple moving average crossover works best in clear markets where there is a definite trend, and not so well in sideways or choppy markets.

What is a Triple Moving Average Crossover A triple moving average crossover is a technical indicator as to the direction of a stock price. This type of indicator is triggered when a short moving average crosses over a medium moving average, and the medium crosses over the long moving average. Typically, analysts will use the 4-day moving average for the short MA, the 9-day for the medium MA, and the 18-day for the long MA.

Consequently the triple moving average crossover will see the 4-day crossover the 9-day and the 9-day crossover the 18-day. Now that all three moving averages have crossed one another, the analyst makes a recommendation on a trade.

How to Trade Using the Triple Moving Average Crossover As one of the simpler technical indicators trade, the triple moving average crossover signals a buy signal when the three moving averages cross one another on an UP trend, and a sell signal when that trend is headed downward. In most cases, analysts will issue a bullish / bearish signal (instead of buy / sell).

As a warning, however, trade decisions should not be based solely on the signal of a triple moving average crossover indicator. In order to confirm or refute the signal produced, investors and analysts can easily rely on signals produced by the MACD and Momentum.

Reviewing multiple technical data for multiple securities can become difficult at best without the mathematical expertise and manpower needed. As such many traders rely on software that will perform such calculations for them and simply advise as to whether they should buy or sell a particular security. - 23222

About the Author:

Forex Trading Courses: Which Do I Choose?

By Michael Pepper

When you have finally decided to take the plunge and start enjoying some of the benefits that a lot of traders who are trading the forex market, then I strongly suggest to you that enroll in a great forex trading course.

You want to make sure you pick a forex course that can really help you get started on the right foot. Your top priority should be understanding the basics of trading, not just how to make money. Remember, youve got to walk first before you can run.

I certainly understand that your mind may be going overboard, due to the fact that there are so many courses to choose from. But my top recommendation is to choose on a course which will teach you a specific trading strategy, not go over general concepts.

The instructor of the course is recognized as one of the foremost experts in their specific trading method. It should be evident that they have really taken the time to perfect the strategy so that it could be taught to others.

So, its your time to get your feet wet and learn about the best way to trade the forex market so you have the best chance for long-term success.

This is the same kind of strategy that all the forex professionals use to make their income with. They comprehend all the workings of currency exchange and know what needs to be done to take advantage of it. Its actually not as hard as you may think it is. All it takes is a little bit of practice.

The big idea behind trading the forex market is all about understanding your risk to reward rate. If 9 times out of 10 your reward is substantially higher than your risk, there is no reason why you cant succeed like the pros do.

The strongest recommendation I can give you is that you find a forex trading course that involves price action. After all, that is what the professionals use. It proves that it doesnt matter what kind of chart you are using. All it really matters is if you understand price movement. - 23222

About the Author:

Gold Krugerrand History

By Ben Harmon

On July 3rd, 1967 the first 1 oz Krugerrand rolled through the presses in the South African Mint. This was not the beginning of the Gold Krugerrand, however- nor were the careful planning meetings of the Chamber of Mines of South Africa (who interestingly enough can trace its roots back to 1889) which lead to its creation.

In 1884, gold was found in the "ridge of white waters" (in Afrikaans Witwatersrand), South Africa. General Joubert remarked that the gold find will "cause our land to be soaked in blood." In this blood and conflict begins the Gold Krugerrand history. Paul Kruger was the President of the Transvaal at this time, and he was very concerned with the influx of gold hungry foreigners who flocked to the sixty mile range of east/west running hills of Witwatersrand. Johannesburg sprang up first as a shanty town, and then eventually became a thriving city. As more foreign miners arrived- they began to want a say on how things were done- for example tax rates and where the taxes were spent. The Boers were concerned about losing their independence - rightly so, as the British empire was eyeing the rich gold find. The seeds of conflict were sown.

The spark that set off the powder keg of the second Boer war came in 1899, when the British demanded equal rights for all the foreign miners. Paul Kruger, concerned about keeping the Transvaal independent, fired back an ultimatum of his own. All British to be out within forty-eight hours. Needless to say neither side backed down, and a war raged for three years. The British eventually prevailed in 1902, and the Transvaal was absorbed- however Boers managed to salvage some conditions so it was not a total rout.

The next step on the golden road of Krugerrand history is the establishment of the Rand Refinery, which supplies the blanks for every Krugerrand stamped. The Rand Refinery (est. 1920) was created by the Transvaal Chamber of Mines to refine all gold mined in South Africa; and immediately began to refine gold ore for one the worlds most prolific gold producing regions, Witwatersrand.

A shiny new 1 Ounce Gold Krugerrand is a product of its history. The obverse side has a portrait of Paul Kruger, painstakingly designed by Otto Shultz. Kruger also lends his name to the coin, along with Witwatersrand, which was shortened to "rand"; which also happens to be the national currency of South Africa. The finishing touch is the delicate Springbok antelope on the reverse- to symbolize South Africa.

With Executive Order 6102 and the Trading with the Enemy Act of 1917, United States citizens were effectively barred from owning gold bullion. In 1967 the Chamber of Mines of South Africa had a clever plan for their fledgling 1 Ounce Krugerrand. By declaring the coin legal tender of South Africa, it was classified as "foreign coin", and US citizens could buy it. They also had another trick up their sleeve, instead of putting a value on it- they put the weight of the gold bullion on the coin. This allowed a quick and easy method to trade gold bullion without the need to melt and assay its gold content. This also tied the value of the Krugerrand directly to the underlying gold value. It's interesting to note that Krugerrands are not 24 carat gold- they are alloyed with copper which gives them their dark golden color and adds strength. Rest assured however, that they do contain one full ounce of gold bullion. Until apartheid was abolished in the middle of the 1990s, it was still illegal to import Krugers in western countries. In spite of this the Kruger was still a commercial success. Forty-six million ounces later, it is remains the world's most popular bullion investment coin. The One Ounce Krugerrand history leads from the rolling hills to the highest political offices, and beyond. - 23222

About the Author:

Silver Eagle Monster Boxes: The Best Way To Buy Silver In Bulk

By Christina Goldman

The main advantage for buying Silver Eagle Monster Boxes is the cost savings. How so? You see, when you buy American Eagle Silver coins, your price is based on the current market spot price. The dealer then adds a premium per silver bullion coin. However, when you buy in large quantities, your cost will be alot less. Also, most bullion dealers offer free shipping for large orders.

Another valid reason for purchasing Silver Eagle Monster Boxes is the shortage situation in silver bullion. Because of the selloff in the stock market, the financial turmoil in the credit markets and increase in bank failures, investors are turning to hard assets for protection and diversification. Unprecedented demand for silver bullion because of extreme investor demand has forced the the U.S. Mint to stop production of 2008 edition of the Silver Eagle.

The US Mint has rationed American Silver Eagles since early spring and is supplying the silver bullion coins to dealers on an allocation basis only.

Most dealers are shipping American Silver Eagle orders as they receive them from the U.S. Mint. In many cases, orders are experiencing significant delays and wait times of up to several months! Investors wishing to invest in Silver Eagles should purchase as many coins as they can afford now. There is a real risk that anyone wishing to purchase these silver bullion coins in the future will have to pay a huge premium to do so.

The American Silver Eagle coin is the most popular silver bullion coin. The Silver Eagle is not only beautiful but its silver content is guaranteed by the U.S. government. Each beautiful silver eagle coin contains 1 troy ounce of silver and is 99.9% pure. The American Silver Eagle is considered legal tender and can be converted to cash at any given time. - 23222

About the Author:

Specialize In Trading US Dollar (Part I)

By Ahmad Hassam

If you are a currency trader and focus on the four major currency pairs EUR/USD, GBP/USD, USD/CHF and USD/JPY, then you should consider yourself a specialist in USD. Yes, its true! You are a specialist in trading the greenback.

Each currency pair actually consists of two currencies. So if you take a long position in GBP/USD then you are in fact buying British Pound and selling US Dollar. In each of the four major currency pairs, US Dollar is one currency of each pair.

This means that you should study and understand the fundamentals that drive the US Dollar and the US economy. You should also understand the workings of the Federal Reserve System (FED). Then you have done your homework. Now you can trade any one of the four major currency pairs as all of them depend on USD.

These four major currency pairs are the most liquid pairs and involve the vast majority of the trading in the currency markets. You should think like this, majors are the most heavily traded pairs and US Dollar is half of each major pair. If I can understand what drives the USD, it will have a huge impact on my trading profits.

What do you think; USD will weaken or strengthen in the near and medium term. The only thing you need to determine is your bias for USD before each trade. Off course develop a system that guides you in forming an educated bias. Then apply that bias to the major currency pairs.

Just to remind you when you buy a currency pair, you are buying the first currency in the pair and selling the second currency. Suppose your form a bias that US Dollar is going to become stronger. With this bias, you can go long either on USD/CHF or USD/JPY. Similarly, you can go short either on GBP/USD or EUR/USD.

One bias, four trades! But each currency pair will react differently to USD. For example, if Euro is also strengthening. The currency pair EUR/USD will move less with USD also strengthening as compared to USD/JPY if JPY is weakening.

Lets say you can only afford to place one mini lot trade. You have a bearish bias for USD. What pair you should trade? You can consider going long on either GBP/USD or EUR/USD. But which one!

Take a look at GBP and the Euro both at the same time. Find out which of the two currencies is stronger right now. You should trade the stronger currency. You can find that by taking a look at the cross EUR/GBP. If the EUR/GBP cross is down, it means EUR is weakening and GBP is getting stronger. You should trade GBP/USD!

You should always evaluate the currency correlations for the major currency pairs in every trading plan that you create. Correlation is determined by what is known as the correlation coefficient. Correlation coefficient always ranges between +1 and -1. The correlations between the currency pairs are dynamic and can change any time. So you need to calculate the correlations at least on weekly basis to give you a fair idea of how the correlations are changing. - 23222

About the Author: