“How To”  Start Trading The Forex Market?  (Part 6)

How can I read currency price charts? 

What DO forex price charts signify and how should they be used? 

Important information abound, such as discipline, trading guidelines, controlling one's appetite, etc., but one of the most crucial things is: 

Learn to read the charts since they are the market's bloodstream. 

I'll be the first to confess that understanding charts and patterns is more of an art than a competence. Make entry and departure decisions based on YOUR PERSONAL COMBINED TECHNICAL AND FUN METHODS...

How can I read currency price charts? 

What DO forex price charts signify and how should they be used? 

Important information abound, such as discipline, trading guidelines, controlling one's appetite, etc., but one of the most crucial things is: 

Learn to read the charts since they are the market's bloodstream. 

I'll be the first to confess that understanding charts and patterns is more of an art than a competence. Make entry and exit decisions based on YOUR PERSONAL COMBINED TECHNICAL AND FUNDAMENTAL ANALYSIS METHOD. 

FOREX charts are simpler to use and interpret. In contrast to the stock market, which features daily drama with corporate reports, Wall Street analysts, and shareholder demands, they reflect a slower-moving, more stable economy of a nation. 

Contrary to stock charts, currency charts tend to form strong trends and spend less time in trading ranges. Additionally, compared to hundreds of equities, Forex is simpler to examine thanks to its four major currencies. 

(The USD/JPY, EUR/USD, GBP/USD, and USD/CHF are the mayor currencies.) 

You can study and monitor any one currency pair with the help of the completely FREE live charting software offered by http://www.fenixcapitalmanagement.com/, which is equipped with the most cutting-edge technology. Gaining a better understanding of a few fundamental concepts related to technical analysis of currency charts will boost your chances of making money. 

Pricing: The market participants' perceptions and actions are reflected in the price. Price movement is a result of transactions between buyers and sellers in the Over-The-Counter (OTC) or "interbank" market. As a result, the prices of all fundamental factors are quickly reduced. Since the market is driven by two emotions, Greed and Fear, examining price charts allows you to observe both the fundamentals and the market psychology simultaneously. Once you grasp this concept, you can start to comprehend how the market's psychology connects to chart patterns. 

When you click on a price bar or candlestick on FCM and most online charting stations, a small data box, commonly referred to as a display window, will appear.

The Bar Chart and the Candlestick Chart are the two most popular formats for price bars used in FOREX trading: 

Charts with bars 

Price bars are a linear (a line) depiction of a time period. This makes it possible for the user to see a graphic representation of the activity during a certain time period. I utilize 10 minutes, 60 minutes, and a daily time period, for instance, for my systems. Each bar displays several crucial bits of information and shares similar traits. 

The greatest price that was obtained throughout that time period is represented by the bar's highest point, first. The lowest price for the same time period is represented by the bar's lowest point. Regular bars show a tiny dot on the left of the bar.

The wick, which indicates the high, is a line that extends upward from the box. If there is a line coming out of the box and representing the low, that line is referred to as the tail. 

These "candlesticks" can be interpreted in a variety of ways, and there are numerous books on the subject. 

Chart Time Frames & Intervals: 

A bar or candlestick's time scale and period, also known as its time frame, primarily relates to the amount of time that elapses between its OPEN and CLOSE. 

For instance, you can view a currency pair in your broker's software throughout time frames of two days, five days, ten days, twenty days, and thirty days in a 1-hour time frame.

forex trading, forex exchange, online currency trading