How to READ FOREX Price CHARTS?
Forex Cost Charts, what DO they mean and Tips on how to use them?
Crucial various facts as discipline, trading rules, not becoming greedy and so on., but one of the most crucial things is:
LEARN to read the charts as Charts represent the lifeblood of the market.
I admit that reading charts, and interpreting patterns, are a lot more an art than a skill. Base and apply your entry and exit decisions on your OWN combined methods of technical and fundamental analysis.
FOREX charts, are easier to interpret and to make use of. They reflect a slower moving, stable economy of a country, compared to the stock market, with its every day drama of firm reports, Wall Street Analysts and shareholder demands.
As opposed to stocks, currency charts do not invest considerably time in trading ranges and have the tendency to create powerful trends. Furthermore, Forex with its 4 Mayor currencies is less difficult to analyze than tens of thousands of stocks.
(Mayor currencies are: USD/JPY, EUR/USD, GBP/USD and USD/CHF)
The complimentary FREE live charting software, with the ultimate cutting edge technology provided by http://www.fenixcapitalmanagement.com/ , will be absolutely sufficient for you to analyze and watch any one currency pair. Understanding just a few basic points about the technical analysis of currency chart can lead to increased profit potential.
Pricing - Cost reflects the perceptions and action taken by the marketplace participants. It is actually the dealing in between buyers and sellers in the Over-The-Counter (OTC) or "interbank" marketplace that creates cost movement. For that reason, all fundamental aspects are rapidly discounted in price. By studying the cost charts, that you are indirectly seeing the fundamental and industry psychology all at once , following all the market is fed by two emotions - Greed and Fear - and once you comprehend that, then you start to fully grasp the psychology with the market and how it relates to the chart patterns.
Data Window Chart - FCM and most on-line charting stations, whenever you click on a price bar or candlestick, it will display a modest box of data typically referred to as a display window which will contain the following items:
H = Highest Price
L = Lowest Price
O = Opening Price
C = Close Price (or Last Cost)
The most common types of price bars, used in FOREX trading, are the Bar Chart and the Candlestick chart:
Bars Charts -
Price bars are a linear representation (a line) of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a distinct time frame. As an example, I use 10 minutes, 60 minutes and everyday time interval for my systems. Each and every bar has similar characteristics and tells the viewer various vital pieces of facts.
1st, the highest point of the bar represents the highest cost that was achieved in the course of that time period. The lowest point with the bar represents the lowest price during the similar period. Regular bars display a modest dot on the left side with the bar which represents the opening price of the period plus the tiny dot on the correct side represents the closing cost of the period.
Candlesticks - Japanese Candlesticks, or only Candlesticks as they're now recognized, are employed to represent the same data as Price bars. The only distinction is that the difference between the open and close form the body of a box which is displayed with a color inside. A red color indicates that the close was lower than the open, plus the blue color represents that the close was greater than the open.
If the box has a line going up from the box it represents the high and is known as the wick. If the box has a line going down from the box, it represents the low and is named the tail.
Many interpretations can be made from these "candlesticks" and many books have been written on the art of interpreting these bars.
Chart Intervals & Time Frames:
A chart Time Scale & Period, or time frame, basically refers to the duration of time that passes between the OPEN and the CLOSE of a bar or candlestick.
For instance, with your broker software, you will be able to view a currency pair, in a 1-hour time frame over a 2-day period, 5-day period, 10-day period, 20-day period and 30- day period.
Most with the short-term time intervals (5-min and 1-min charts) are utilized for entry and exit points and the longer- term time intervals (1-hour and every day charts) are used to see where the general trend is.
Forex Cost Charts, what DO they mean and Tips on how to use them?
Crucial various facts as discipline, trading rules, not becoming greedy and so on., but one of the most crucial things is:
LEARN to read the charts as Charts represent the lifeblood of the market.
I admit that reading charts, and interpreting patterns, are a lot more an art than a skill. Base and apply your entry and exit decisions on your OWN combined methods of technical and fundamental analysis.
FOREX charts, are easier to interpret and to make use of. They reflect a slower moving, stable economy of a country, compared to the stock market, with its every day drama of firm reports, Wall Street Analysts and shareholder demands.
As opposed to stocks, currency charts do not invest considerably time in trading ranges and have the tendency to create powerful trends. Furthermore, Forex with its 4 Mayor currencies is less difficult to analyze than tens of thousands of stocks.
(Mayor currencies are: USD/JPY, EUR/USD, GBP/USD and USD/CHF)
The complimentary FREE live charting software, with the ultimate cutting edge technology provided by http://www.fenixcapitalmanagement.com/ , will be absolutely sufficient for you to analyze and watch any one currency pair. Understanding just a few basic points about the technical analysis of currency chart can lead to increased profit potential.
Pricing - Cost reflects the perceptions and action taken by the marketplace participants. It is actually the dealing in between buyers and sellers in the Over-The-Counter (OTC) or "interbank" marketplace that creates cost movement. For that reason, all fundamental aspects are rapidly discounted in price. By studying the cost charts, that you are indirectly seeing the fundamental and industry psychology all at once , following all the market is fed by two emotions - Greed and Fear - and once you comprehend that, then you start to fully grasp the psychology with the market and how it relates to the chart patterns.
Data Window Chart - FCM and most on-line charting stations, whenever you click on a price bar or candlestick, it will display a modest box of data typically referred to as a display window which will contain the following items:
H = Highest Price
L = Lowest Price
O = Opening Price
C = Close Price (or Last Cost)
The most common types of price bars, used in FOREX trading, are the Bar Chart and the Candlestick chart:
Bars Charts -
Price bars are a linear representation (a line) of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a distinct time frame. As an example, I use 10 minutes, 60 minutes and everyday time interval for my systems. Each and every bar has similar characteristics and tells the viewer various vital pieces of facts.
1st, the highest point of the bar represents the highest cost that was achieved in the course of that time period. The lowest point with the bar represents the lowest price during the similar period. Regular bars display a modest dot on the left side with the bar which represents the opening price of the period plus the tiny dot on the correct side represents the closing cost of the period.
Candlesticks - Japanese Candlesticks, or only Candlesticks as they're now recognized, are employed to represent the same data as Price bars. The only distinction is that the difference between the open and close form the body of a box which is displayed with a color inside. A red color indicates that the close was lower than the open, plus the blue color represents that the close was greater than the open.
If the box has a line going up from the box it represents the high and is known as the wick. If the box has a line going down from the box, it represents the low and is named the tail.
Many interpretations can be made from these "candlesticks" and many books have been written on the art of interpreting these bars.
Chart Intervals & Time Frames:
A chart Time Scale & Period, or time frame, basically refers to the duration of time that passes between the OPEN and the CLOSE of a bar or candlestick.
For instance, with your broker software, you will be able to view a currency pair, in a 1-hour time frame over a 2-day period, 5-day period, 10-day period, 20-day period and 30- day period.
Most with the short-term time intervals (5-min and 1-min charts) are utilized for entry and exit points and the longer- term time intervals (1-hour and every day charts) are used to see where the general trend is.
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