Forex Live Chart - Using A Chart

Forex live chart is a necessity if you are planning to do your own market analysis

. This chart is created at once by using current market data, so you can have actual data on market movement during that period. Actually, it is a very handy tool to have even if you don't do your own market analysis.

First of all, you have to pick the currency pair that you want to analyze; it usually comes in the form of a drop down menu. When you get the one that you need, select the chart type, it commonly comes in four forms: Line, Bar, Candlestick, and Table. If you are a novice, I suggest to begin with a Bar type. After you pick the type, select a time frame; it can be five minutes, fifteen minutes, weekly, etc.

In a bar chart, every vertical bar which you see symbolizes a time frame. The bar at the top is the top price and the bar at the bottom is the bottom price for that specific time frame. There are two horizontal bars for each vertical one; one on the left side and one on the right side. The bar at the left is the opening price while the bar at the right is the closing price for that specific period of time. Tips: Use the zoom function to see it clearly.

If you are going to use forex live chart, you should at least know these things:

About Support and Resistance

The market movement is unpredictable and it can goes anywhere at any time. But we can get the information from historical data that there are a period of time where the price doesn't goes higher or lower from a specific price.

Example:

-From July to December, the EUR/USD prices never exceed 1.645, that means 1.645 is the resistance for EUR/USD in that period.

- From January to May, the USD/JPY prices never fall below 90.070, that mean 90.70 is the support for USD/JPY during that time period.

These support and resistance data can be used to decide entry point. An orthodox method is buy at support and sell at resistance. There is also more advanced strategy such as buying at resistance breakout and sell at higher price; it is all depend on the currency, circumstances, and your trading system.

Note: Breakout is when the price move through the support or resistance line.

Indicators

A good chart software also allows you to add various indicators. Indicator is a mathematical calculation based on prices which you can use to help you make decision. For example: MVA indicator can show you the average price for a selected period, EMA present you the weighted price calculation for a selected period, etc.

Forex live chart can be used in various other ways to support a trader and understanding the basic function is a good start for your trader career.

by: Matthew Johnson.

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