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Forex Live Chart – Learn To Use Charts

By Matthew Johnson

If you have interest to learn market analysis, you will need an access to a forex live chart. ‘Live’ here means the service that provide it will use current actual market data to create the chart. Basically, it is a very useful information tool to have even if you don’t do your own 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. After you find the one that you want, choose the chart type, it typically is available in 4 forms: Line, Bar, Candlestick, and Table. If you are a novice, I suggest to start with a Bar type. Once you select the type, choose a time frame such as one minute, five minutes, daily, weekly, etc.

In the bar chart, every vertical bar that 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. For each vertical bar, there are two horizontal bars, one to the left and the other to the right. 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. Note: Utilize the zoom feature to see it in detail.

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

Understanding 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.

Instance:

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

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

Entry and exit point can be decided based on these support and resistance data. An orthodox approach 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 according to prices that can be used to help you make decision. For instance: MVA indicator can show you the average price for a particular period, EMA present you the weighted price calculation for a particular 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.

Charting is just a part of currency trading, know other essential functions that you must possess on software for technical analysis purpose.Also, check out methods to actually find a rewarding system in identifying forex trading systems.

Article kindly provided by UberArticles.com

Topics: Currency Trading | Comments Off

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Article Citation
MLA Style Citation:
Johnson, Matthew "Forex Live Chart – Learn To Use Charts." Forex Live Chart – Learn To Use Charts. 22 Aug. 2010. uberarticles.com. 13 Apr 2015 <http://uberarticles.com/finance/currency-trading/forex-live-chart-learn-to-use-charts/>.

APA Style Citation:
Johnson, M (2010, August 22). Forex Live Chart – Learn To Use Charts. Retrieved April 13, 2015, from http://uberarticles.com/finance/currency-trading/forex-live-chart-learn-to-use-charts/

Chicago Style Citation:
Johnson, Matthew "Forex Live Chart – Learn To Use Charts" uberarticles.com. http://uberarticles.com/finance/currency-trading/forex-live-chart-learn-to-use-charts/


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