All About Trading Chart

[fxearner]

bhai ji aapne bahut he achha thread share kiya hai jismein charts ke baarein me achhe se bataya gaya hai,ek trader ke liye bahut he jaroori hota hai charts ko samjhe kyunki ussi se trader fir market me analysis karke trade open kar paata hai..

[akash4u4ever]

Charts- Forex trading requires an even more skillful side to reading. that is, it demands that you learn how to read forex trading charts.

A forex trading chart is basically a chart that plots a currency pair price movement over a period of time. price of currency pair is usually represented in the form of a line, candlestick and a bar.

Different Forex Trading charts presents different time intervals. we can see many time frame as 1M , 5M , 30M, 1H, 4H, 1D, 1W, 1MN. if you are short term trader want some quick pips then you can use minimum time interval time frame and if you are a long term trader then you can use higher time frame for better result.
If you uses combination of short and long both time frame then you will get more better results.


Types Of Charts-
Candlestick Chart- - This type of chart is used by maximum numbers of trader. everyone loves this because it represented the high, low opening and closing all trading period. while the body of the candle or its rectangular part shows the open and close prices and the wick shows high and low prices


Line chart- This chart shows only one price often the closing price for each period.


Bar chart- Bar chart is the part of candlestick chart but it is difficult to read than candlestick chart as this chart plot opening and closing prices with the use of horizotal tick marks and vertical bar


Understanding The Chart- First we need to know that how the currecy pairs expressed in forex charts. when a currency pair is displayed the currency the left side s the base currency and the one on the right is the terms currency


If currency pair is EUR/USD and the forex chart shows the price is 1.1190 this means that it would take 1 EURO to buy 1.1190 US Dollar
if Eur/Usd declines then its means that USD is stronger than EUR and if market goes up side its means EURO is stronger than USD


when you find that the chart shows an upward trend , it might be a good idea to go long, This means buying so that you can sell your investment later when it has gained profit. when you see a downward trend in the forex chart, then you might want to go short.
you also make the chart reading process less complicated by sticking to one type of chart. while you are free to choose anytype, it's best to stick to reading candlestick charts since this type is widely used.


How to read the charts- Learning the art of reading forex charts and getting better at it is not enough to be successful in this trade. in fact it is only half way in making a sound deciion for your investment. determining trends with the use of forex charts is actually is referred to as a technical analysis in forex trading. by training yourself in fundamental analysis you will be a better trader to make good decisions. this approach requires the analysis of economic and political factors to recognize or predict trends.
better read up on the latest news about various nations, particularly the one with the currency you have your investment on.