How To Interpret The Forex Charts

The first question that would have come in your mind is that what is a forex chart

? Forex charts are just like usual charts. Because they are related to the forex market, they will symbolize the trends that have been followed by the currency and the pricing method. These charts are prepared in the form of pictures. In these charts the change in price is represented on the Y-axis while the changes in time are represented on the X-axis. These charts are prepared on the data that is produced all over the world. As the frequency on which the forex market operates remains on changing, so the presentation of these charts also varies a lot.

It is very common feeling that the forex charts are very hard to understand but it is not so. If you have a little information about the currency market then you can easily understand what is presented in these charts. If youre a trader and you want to read a particular chart, then first you should the select the pair of currencies and a specific time period in which the trends will be studied.

If youre looking for a real time forex chart then it will depend a lot on the type of trading system that is being used. The types of the charts that are usually used are line charts and the candle stick charts. If youre quoting the frequencies as the EUR/USD, then it will indicate that the EURO is a base currency and the USD is the quote currency. In this if the candle is fluctuating around the 1.3500 mark then it will mean that the 1 EUR is equal to 1.35 USD. With this little bit of facts and then by adjusting the timeline as per your requirements, you can simply read the forex charts.

by: Chris Cornell

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