Descending Triangles - Long Trading Strategy

By Jeff Cartridge

The Descending triangle is a very well known chart pattern that is usually traded short, but can also be traded if it breaks out to the upside. A descending triangle is formed when the price action is contained within two lines. The bottom line is close to horizontal while the top line slopes down towards the bottom line.

Descending Triangles, Ok To Trade

Descending triangles are one of the most predictable patterns that are available to trade short, but also can perform on the upside. Just 43% of the patterns break upwards and can deliver good returns when they do. The average gain is 0.87% in 8 days with half of the breakouts (41%) being profitable. There are better patterns to trade on the long side, but selecting the right conditions can make trading descending triangles attractive.

Refine Your Entries

When you look at the performance of a descending triangle in bearish market conditions you will see the results were not as strong as they were in more bullish years. Trading descending triangles when both the sector and the market, are in an up trend or consolidating improves your trading results. Because of the shape of the pattern the share will naturally be in a down trend so in effect you are entering a retracement in the share during a bullish market phase.

Descending triangles that breakout early in the pattern, produce inferior results. A breakout is better if it occurs after the pattern gets 30% of the way to the point of the pattern. Shallow patterns are also best avoided, where the pattern height is less than 2% when compared to the stock price.

Illiquid stock can sometimes be identified by two identical closes or highs and if this is the case you are better to avoid these trades. If volume supports a descending triangle breakout then the profitability of the trades improves. For volume to support the breakout, volume when the stock is going up should be greater than volume when the stock is going down.

Descending Triangles Can Deliver Good Profits

By following these simple rules profitability of trading descending triangles can be improved substantially. With an average return per trade almost doubling to 1.45% in 10 days and a hit rate of 51% descending triangles can be trade successfully when the market conditions are right.

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. - 23222

About the Author:

Jeff Cartridge has been trading chart patterns since 1998 and created the website LearnCFDs.com Trading Chart Patterns - All The Insider Tricks

An Easy Way To Pick The Best Stocks To Invest In

By Grant Dougan

One of the types of shares I like most are penny stocks. There's some investors that never look at these sorts of investments since they assume they are full of risk. Don't let yourself be frightened of these stocks though - you will earn unbelievable money when you know what to search for.

Any stock under $2 is what I view as a penny stock. When I consider shares to purchase, I search for a business that is up and coming. Some shares of established businesses are priced low due to struggles that the company has had. I always look for businesses that are new and growing instead of businesses whose stock is inexpensive due to troubles they had. This sets me up to make some massive money later on.

So how can you pick the stocks to invest in? Obviously, this is the key question!

Your first step is to do is to scope out the industry that the business is involved in. Is the industry growing?. Think about whether a new entrant into the industry can actually succeed considering the competition in the industry. You must look over the industry as a whole to make sure that the company is producing a product that there is enough demand for.

Second, what about the business? How do you feel about the management? You should also consider what the company offers its customers and see if their product differs from what others in the industry are offering. You should try to find businesses that either offer a unique product or differentiate themselves on some different aspect such as price. If the organization provides a product or service that isn't identical to what all the other competitors provide then the company is extremely more likely to generate additional sales.

You should also take a look at the financial situation of the company, but don't be scared if you notice that the business has negative net income. Many growing or new businesses don't make income for the beginning years. Nevertheless I want to see that the business has funds available to them or financing so that they can continue to develop.

Do remember that it's always a smart thing to have the ability to find updates on the company. I love being able to visit a internet site where the organization issues updates because this lets me have a means to keep up to date on business updates.

Once you begin to search for penny shares and making investments, it's not hard to find yourself earning some great profits. By knowing how to find\locate a winning penny stock, you can earn some terrific cash. - 23222

About the Author:

Click Here to discover how real people who are making cash trading forex online. You can also see reviews on the most popular Forex Robots.

Commodities and the Global Macro Trader

By Paul Anderson

While most people think of commodity traders as just a bunch of guys in Chicago the truth is that many different types of investors participate in the commodity markets. Obviously we have floor traders but we also have several types of upstairs traders.

The largest group of traders are definitely the upstairs trader, or traders that are not on the floor of the exchange. Some have floor experience while others do not. The largest group of these are systematic long term trend followers while there are smaller subsets that do purely fundamental and others a hybrid model.

Global macro traders are the next major group of players in the commodity markets. Some are heavily involved and some barely trade them but all macro traders track the commodity markets to give them a better look into the worlds macro economic situation.

In 2008 for example we saw oil climb to record highs. During this time the macro trader was busy looking for what companies will benefit and what companies will get hurt by this. Yes, oil companies made out well but so did companies like MLP's and railroads. On the other hand airlines and fleet services got absolutely hammered as their fuel costs started to cut heavily into their sales.

One area that also gets a ton of attention is that of precious metals. Precious metals have a small piece of the industrial machine but mostly are used as an inflation hedge and as an asset backed alternative currency as more and more of the fiat currencies look long term bankrupt.

Another huge piece of the economic pie is that of industrial commodities. Industrial commodities comprising aluminum, zinc, lead, tin, nickel, iron, copper, etc are used in everything for everything. If you drive it, plug it into the wall, or live in it then you have industrial metals all around you. And you only need to have accounts with access to three exchanged to trade 95% of all this.

Next up are the agricultural commodities. While some gloss over this section they are actually a huge part of the economy. Do you eat food? Do you drink water? If you answer was yes to either of these questions then you need to pay attention to the ags. If you answered no then call the hospital please. Anyways the ags are important and can be traded based off of the demographics of different nations. Emerging markets are rapidly emerging which is changing the entire supply demand situation of food and water. Monitor and profit from this, or stay ignorant and get unpleasantly surprised.

As you can see commodities can be a very useful and profitable asset class. With several sub sectors as well as the fact that most commodities are so universal that they only trade in one currency and it should be obvious that you need to track if not trade commodities. - 23222

About the Author:

If you need actionable trading ideas then check out The Macro Trader Itis a weekly global macro trading advisory publication with frequent intra-week updates for time-critical analysis and actionable trading ideas.

FAP Turbo - A Forex Trading Robot Reviewed

By Michael Torc

Many people are starting to get into currency trading to bring in a second income. As more people are making a lot of money with online currency trading, there are more people searching for information on trading technologies that run on auto pilot. There has been a lot of hype about the currency trading market and lots of people have started to trade currency as a home based business.

There are many a Forex trading robot out there. These allow you to trade in the Forex market automatically, without "getting your hands dirty." One of the newest and most sophisticated Forex trading robots on the market is FAP Turbo robot. The purpose of this article is to give a fair review on this product.

FAP Turbo is relatively new to the currency trading world and has been doing very well. Initially, the Forex trading robot was tested with real live trading accounts over a period of months before they released it to the public. Its creators are Marcus Leary and his team of software experts. They were working on the project for over 5 years prior to its release.

Leary's team consists of three IT students (Ulrice, Mike, and Steve). Under Marcus Leary's supervision, they developed this Forex trading robot, an all new innovation. This particular trading system works with a trading platform called MetaTrader 4.

FAP Turbo works very well for traders because it has a "stop loss" function built in. This means your losses stay up below a certain level to avoid the user's financial ruin. This will allow your losses to remain small so that you won't lose a lot of money at any one time. This makes this particular Forex robot safer for traders than other similar types of systems.

The Forex trading robot uses two strategies combined with each other to create one powerful result. These strategies include the short-term scalping strategy and the long-term advanced FAP strategy. You can configure the software very easily, too. Just download and install the software and start trading. It's really that simple. You can start your trades with just $50. Then, just sit back and allow the FAP Turbo Forex trading robot do all the hard work for you while your earnings steadily increase.

And FAP Turbo gets good results. Within the past nine years, it has demonstrated a 95% winning capability. If you don't believe this, you can go to the website and watch it perform with a Live Proof trading account. In fact, this particular system can double your account standing in a single month. During its history, FAP Turbo robot has only lost 0.35% at maximum in any account.

FAP Turbo comes with a series of training tutorials to help you setup the system and all your screens. The videos are about 5 minutes in length and all are professionally done. Now that you have the system all setup your Forex trading robot will automatically place trades for you. The system is designed only to run when you are online. Forex is a 24/5 activity so your computer must be online in order for you to trade. Luckily, Forex offers a hosting service to host your robot on a server so as to not have your computer tied up. Expert brokers will monitor the trades and open orders for you when needed.

In order to learn all the screens and features of the FAP software, takes time. I recommend doing a demo account as a start with the system. You will be able to run the program with virtual money without risking real cash. Then once you have the results that you want on the demo account you can then go live. Doing so, is absolutely necessary. - 23222

About the Author:

Michael Torc is a former Programmer, a successful Online Trader and a member of Mensa. He enjoys writing articles on techie topics and highly recommends Forex trading robot FAP Turbo for generating consistent profits, daily.

ETF Trading Signals, Low Risk Trading Instruments

By Taylor Bans

I've been playing the stock market for a few years now. Like everyone, i've taken my share of losses, but I've also made more than I lost so I can't complain. I've done hot stocks and trend following and traditional trading, but I never got involved in the ETF market until recently.

By using the information from ETF Trading Signals, I've been able to increase my yield without increasing my risks. If you don't know about ETFs, they are like a mutual fund, a group of companies that trade as a single issue. The companies may be grouped by industry or other commonalities like geographic location. So If you decide to invest in the oil industry, you are investing in several companies when you buy an ETF.

Instead of considering my ETFs as long term financial instruments, I started looking at them as I would any other stock. The low buy in meant that I didn't have to tie up as much capital as I did with some other methods. It isn't as fast as hot stocks, I usually hold my ETFs for one or two months, but following the tips from ETF Trading Signals has helped me to make more in this market than I thought I could. I owe my friend a nice dinner.

I was thinking about buying some ETFs to add to my portfolio with my other long term investments. I started checking out websites that brokered ETFs and I came across ETF Trading Signals. ETF Trading Signals is a site that keeps track of the highest performing ETFs on the market. They even send alerts and give advice on the most profitable ETFs every month. I already keep track of hot stocks and this looked like a good idea.

You can make more than average on a low risk investment like ETFs with the right advice. ETF Trading Signals is right more often than they are wrong. Nothing is certain in the stock market, but so far I'm getting a better return on my ETFs than I expected to by following the tips and advice offered by this site.

This market may not be for everyone. i like to keep my investments diverse for the best returns. I still use hot stock and trend following strategies and I have a little action going in Forex as well. ETFs are an addition to my other market methods and it is one more thing to watch, but I believe its a good investment. You can still, of course, buy ETFs as a long term investment if you aren't interested in keeping up with all the markets ups and downs.

If you are a serious investor who is looking to diversify, I highly recommend trying ETFs and using ETF Trading Signals as an addition to your portfolio. The advantages offset the disadvantages, and with the right information and techniques, you can make more on this type of investment than you think.

I recommend ETF Trading Signals to anyone who is thinking about entering the ETF market. It may not be the fastest way to make a buck, but you can't have everything and this is a great investment if you can't afford to lose a lot. If you haven't considered ETFs, you should certainly investigate the market's potential. - 23222

About the Author:

Go to ETFTradingSignals.com and sign up for their free newsletter to receive the best ETF of the month or find more about their ETF trading newsletter.