To Learn Technical Analysis Means Understanding the Inside Bar

By Chris Blanchet

Many investors who are just learning technical analysis will make short-term investment decisions based on reliable, longer-term patterns such as the head and shoulders top discussed elsewhere in this series. The difficulty with such a strategy is that short-term trades based on long-term patterns will typically not yield the desired gains.

The inside bar pattern is one such pattern from which investors can take short-term cues. This pattern indicates a possible change in investor sentiment in the short-term. In other words, if the overall trend has been heading down, the inside bar often indicates a reversal in that trend.

Discovering an Inside Bar Pattern

For investors who are learning technical analysis, identifying the inside bar might be a little more difficult. It involves a taller bar one day, followed a smaller bar the next. The smaller bar consists of a trading range within the preceding day's taller bar.

Supporting Criteria

When it comes to using the inside bar to commit to a trade, investors should seek additional confirmation through additional analysis. This step is often overlooked when investors start learning technical analysis. Other analysis includes fundamental data for the security, sector and market, as well as technical data such as support and resistance levels and momentum.

When it comes to analyzing the inside bar pattern, investors will achieve better trading results from this pattern when the inbound trend is steeper. Additionally, investors will want the first bar to be longer, which suggests the inbound momentum has climaxed. As for the second bar, the narrower the better as this indicates that the reversal will be more dramatic.

Finally, volumes should be smaller on the inside bar than on the first bar.

For investors learning technical analysis, please remember that no single indicator should be used in isolation. Confirmation is highly recommended from other tools. For investors who would prefer a hands-off approach, there are trading software programs that will simply make buy or sell calls. - 23305

About the Author:

Chris Blanchet has more than 16 years of experience as a Financial Advisor at one of the world's largest banks by market capitalization. To learn technical analysis free visit Online Trader Today.com where Chris writes about Technical Analysis and Options trading. Chris also maintains a debt-free blog at How To Repay Debt.com

Effective Preparation For Robotic Trading

By John Eather

What may be the best for some may not be the best for others. It's important to know exactly what you're looking for when it comes to choosing the best software that will produce the best results with Forex trading or investing.

In the unstable economical situation that we have found ourselves in as of late, one financial market has seen a 41% surge in trading and profitability than in previous years. Forex trading, or more technically known as Foreign exchange rate trading has kept both brokers and traders happily busy during these uncertain times.

So much so that people who would otherwise have turned a blind eye to this lucrative market, are now not only taking notice, but wanting a piece of the action themselves. With Americans looking for each and every single way to cut out the middle man, as to walk away with their share plus some, now more than ever they are turning to a technology that has been around for years.

Robotic currency trading has been utilized in the exchange market sparingly for at least a decade. It was not until recently that the technology behind such a machine was reevaluated and thus updated to produce more profitable and stable results.

The end product of this research and development has given the world newer, smarter, faster robotic traders whose forex investing intervention makes the difference between making hundreds and making thousands of dollars by taking full advantage of its ability to manipulate the existing market.

When seeking out the right match for your needs, you want to focus on two key points: price and results. First off, disregard any robotic software that can't show live feed of one of their products in action. You can sit and listen all day to someone drone on about how great their product is, but it doesn't matter until you can physically inspect the program actually producing results that you can base a solid decision upon.

With many offerings out there in the world of forex investing, all promising equally staggering results, it's important to educate yourself. Find a product that interests you, but then do your research about it to ensure that it can and will do exactly what it is you are looking for.

Thankfully, the internet gives you the opportunity to do just that. Use the internet to research reviews on the software and see the actual robot do the work. With this research, you will realize without a doubt what works best for you. - 23305

About the Author:

Before you begin trading forex online, please sign up for John's fantastic ecourse and reports about Online Forex Trading. Get the latest info concerning trading forex online. Go to MoneyMakingFxTrader.com to learn more.

Successful Currency Trading Online Takes Understanding

By John Eather

It takes a certain amount of understanding for anyone to be successful when currency trading online. Not to say that only specialized forex traders can undertake this kind of business; that is not true. However anyone who wants to get involved in this industry has to look at it from the point of view of being a "new career", not as just "anyone can do it, no skill required".

Many people who have taken a leap of faith and jumped in at the deep end. Taking their hard earned money and opening a margin account may have has some success and made a profit. This is pure luck, they more than likely made losses in the long term.There is a psychology to foreign currency trading and most success stories indicate that certain steps were taken in order to ensure their success.

Trading in foreign exchange is a highly specialized field. Anyone who is willing to learn, can learn the necessary skills, and any previous skills training in another career, may or may not be relevant. Entering the forex market is specifically done to make profits and therefore should be entered with caution.

One of the most important realizations of the successful trader is that he/she acknowledges they can make a loss just as easily as they can make a profit. It is for this reason that it is vital to have a systematic strategy in place in terms of trading methods. Any successful forex trader will tell you that they do not dive out of the frying pan and into the fire with currency trading. This is just as dangerous as it sounds! They have been educated in the ways of their trading platform, how to open margin accounts and, when to or not to trade.

Most of the successful traders started off small, generally in mini forex accounts, got as much assistance as they could from mentors who were experienced traders and learned the ropes. You will also find that they focused on only one trading method, meaning just one currency, and followed their trading plan diligently. Not one of the online currency traders who have become successful have ever started out doing this as a living. Capital has been set aside, which was not required for living expenses. This is no overnight success story, and preparation as well as understanding is key to success. - 23305

About the Author:

Before you start online trading forex , please check out John Eather's brilliant ecourse and reports about Currency Trading Online. Get the most recent information regarding forex. Go to Online Forex Trading to learn more.