FX Charts And How to Use Them

Posted by Paul.U
Jun 27 2014

Usually when you open up a chart, you will see the price displayed as either a line or candle stick chart. The charting software allows you to view prices over different time frames. The reason is that different traders do trade with varying frequency. Someone who trades a lot during the day will probably be looking at a 15 minute or hourly chart (though you can go as low as 1 minute). Someone who trades less frequently may prefer looking at daily charts, or maybe even weekly or monthly ones. The longer time frames respond better to technical indicators than shorter time frames. This is because more data over a longer period, is analysed.

Technical Analysis:

 

Real time forex charts that are free of clutter are generally the easiest to trade from. Having too many indicators is like having too many cooks; they spoil the pot. There are a wide variety of technical indicators in use. Some of the most popular are: moving average, parabolic SAR, stochastics, RSI and MACD. These indicators are merely tools in the currency trader’s toolbox. Seasoned traders never rely on one indicator alone, and always seek confirmation from another one. Though for a beginner, it is best to start out using just one indicator at a time to get a good feel for how it works. As you gain more experience, you can expand your set.

 

In conclusion, getting started in FX can be overwhelming at first because there is a lot of new material to learn. However, real time forex charts, free of charge appears to be the best way to get your foot in the water safely.

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