subject: The Probabilities of Winning in Forex [print this page] The Probabilities of Winning in Forex The Probabilities of Winning in Forex
The probabilities of winning in forex are huge. You have to understand there are no certainties in the market, only probabilities. To make the probabilities to be in your favour, you have to be very knowledgeable about so many things. Read constantly, follow the news and check the trends. The major currency pairs that are traded most are EUR/USD (euro for U.S. dollar), GBP/USD (Great Britain pound for U.S. dollar), USD/JPY (U.S. dollar for Japanese yen) and EUR/JPY (euro for Japanese yen). For you to shift the probabilities of winning in your favour, there are some trading tools to help you. Using charts as one of the trading tools, here are a few charts used in trading. There are also tips that'll help you understand these currency trading charts. Currency trading charts particularly show prices in the past and present as well as the market situation, thus you can use them to your advantage. Traders often look for patterns in these charts to give them a hint on whether to buy today or tomorrow and decide when is the best time to buy and sell with the best profit.
These charts show among other things currency prices, trends as well as market situations. They are:
Line Charts - the closing prices are shown in this chart with a straight line connecting them, showing the trend and movement of prices.
Bar Charts - one of the most commonly used currency trading charts used by traders where you will find the opening and closing prices as well as the highs and lows of a currency pair.
Candlestick Charts - this is another chart which gives a good amount of information. Although this can be a little complicated at first, it can be simple to read once you already know where to look and what the 'candlestick' graph represents. This is also favored by a lot of traders as you can get a lot of information with just a single graph.
Point and Figure Charts - instead of using lines and bars, this chart makes use of 'Xs' and 'Os'
