Forex Chart Types And How To Choose The Best

Forex Chart Types And How To Choose The Best

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Forex Chart Types And How To Choose The Best - Forex trading is a very lucrative line of investing. However, to be successful you would need to make serious decisions such as the currencies to pair and when to do so. You may need to do plenty of research to be able to maximize your profits. There are so many ways of predicting currency value movement to help you make the right decision and Forex trading charts are some of the best in making the comparisons.

The charts are designed to show performance of particular Forex currency. Using the charts, you can check the historical performance of the same, so you can determine how suitable it is to make a move. The charts record several prices in specified timeframes making it possible for you to view high price, average and low price of a currency you are interested in compared with others. With this information, you will be able to do trades of the stock as predicted by the charts. The charts are definitely helpful for any serious Forex trader or investor.

See Also: The Best Forex Trading Signals

Forex chart types

The charts come in different types and the most popular and commonly used are bar charts, candlestick charts and line charts.

Bar charts - They are a bit complex and designed to show opening and closing prices. Using these charts you can also view highs and lows. They contain a vertical bar which indicated lowest traded price at the bottom during a specified time period. At the top of the bar is the highest price paid indication. The bar also has a horizontal hash on left side showing opening price and on the right side of the horizontal hash is the closing price. A bar simply means one segment of time, whether it is an hour, day or week.

Line charts - The line charts are simple to use and read. They have a line running from one closing price to the next. When the two periods are together, it becomes possible to see the general price movement of the currency pair within a given period of time.

Candlestick charts - These charts are very similar to bar charts only that they come with graphic formats that are much more attractive and pleasant. They use a vertical line to indicate high to low range. In this kind of charting, the middle block of the line which is largest indicates range between opening and closing prices. This block is usually color filled when the currency closes lower that it opened. The candlestick charts are majorly for visual aid because they have the same information found on bar charts. Most traders prefer the candlestick charts because they are easy to interpret and give beginners an easy time figuring out chart analysis. They are also easy to use and the patterns come with exciting names to help you remember what they mean.

Common charting periods

The different trading charts all illustrate price movement over a period of time. This means that there are charting periods you should get familiar with depending on what matters to your trades. The market view can drastically change when you switch to a different time horizon.

Monthly charts - They are Forex trading charts that illustrate price movement over a longer time horizon. Long term investors will find these kind of charting most suitable; they can represent years of price data for that particular market.

Weekly charts - They also make good options for investors and trader with a longer term time horizon. If you wish to analyze intermediate term time, you will find these charts appropriate. They are usually used to analyze periods in six months excess.

Daily charts - They are one-day interval charts and are the most commonly used charts by investors. They analyze periods in six weeks excess and come in handy for short and intermediate term time periods.

Intraday charts - These charts illustrate the movement of prices within the daily opening and closing bells of the given market. They can be divided into Intraday hourly charts, 15 minute charts and even 5 minute charts. These shorter period charts are great for scalping and day trades that last few minutes, a few hours to a few trading days.

Why use the charts?

Forex trading can be very profitable when approached strategically. The trading charts offer a much easier way for investors and traders to make their decision because they:

• Come with multiple time frames that allow traders to see market patterns and trends easily
• Have customizable tools that allow every trader to get a fit that is just right for their trading needs
• Feature overlay of a number of indicators for each currency pair or commodity in the market
• Offer assistance to traders, especially in making decisions in real-time

Most brokers offer the charts free to trader who choose to use their platform. This way, they are able to keep them active in the market. You may have immediate access to the trading charts as soon as you open an account with your Forex broker of choice. Alternatively, you can choose to pay for the data feed whose price will depend on the markets being traded. Using a broker is a much more affordable option and you may want to consider this, especially if you are just starting.

Choosing the best chart

A good chart should be easy to use on any given platform. You really do not want to take forever trying to be proficient in using software because you may just lose too much of valuable trading time.

The charting package that you choose should also give you an easy time downloading and setting up. Most packages include detailed setup instructions as well as user manuals which ease your learning.

Choose a charting package that offers trading indicators for different trading strategies. You should be able to see where your trades take place without necessarily being overwhelmed by too much coding.

Consider the time frames so you can get updates under the most appropriate intervals matching the investing window you are interested in.

Forex Trading Signals - Understanding the Basics

Forex Trading Signals - Understanding the Basics

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Forex Trading Signals - Understanding the Basics - In a Forex market, the simplest trading strategy is the best one. The profitable ones are easy to understand and implement. These strategies are built upon the basis of market analysis and expert forecast. These analytics are communicated to the traders by means of handheld devices using SMS alerts, emails or mobile application notifications. These messages also notify the course of action that will be termed profitable in the long run. These indicators are termed as Forex signals. Reliable Forex signal aids in the decision making of traders and help them decide whether to invest in the exchange market or not.

The Forex consultancies provide a platform either as a software module or a web-based portal. The Forex trading signal proves to be a reliable source to forecast trends of in the market. It has a well-developed trade monitor that transmits alerts on properly laid down lines as required by the investor. The better signal interfaces offer a host of customisation options that the users can use and profit from. It helps formulate the graphs with indicators and extrapolate the graphs to estimate the currency rate with time. The visual interface helps to understand the movement of the market and find the trends that the trader can use to his or her advantage.

The signal should be reliable and transmitted well in time to make the trader capable of deciding a due course of action. Investing in right trades from reliable information will help maximise returns on investments. The signal must be technically sound and be able to exhibit market forecasts correctly. It must also provide the capability to analyse the situation in real time. The exchange monitor tool should have a user-friendly environment. The installation and operation must be feasible. The graphs and statistical representation must be easy to depict and understand.

It is advisable to invest in Forex services that have a live trading room feature making the traders learn trading ethics from experts and reputable traders who develop the Forex signals. A dedicated team of experts guides the user through the ups and downs of the market. These experts have mastered the trends of the industry and provide highly beneficial with the tips and tactics they teach the user. It is always better to turn to a service provider that has a good name in the industry. These firms ensure that the exchanges made by professionals are digitally monitored by experts, preferably in a live trade centre. The service provider should have custom options to choose the mode of signalling and the currency pairs for exchange. You are advised to try out a free trial of the service and then choose the firm that you think gives the best services.

Things one must know before investing in Forex signalling:

• Choose the currency wisely. Most of the currency transactions happen on 7 currency pairs only. 
• Forex is the biggest market in terms of value and funds involved with a daily transaction of over $4.0 trillion. 
• As easy as it seems, it is difficult to earn profits in the initial phase of trade. 
• Successful trade starts with small gains.

Learn the Secrets of Forex Trading

Learn the Secrets of Forex Trading

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Learn the Secrets of Forex Trading - Forex, short for foreign exchange market, refers in a general sense to the worldwide market that deals with currency trading. It is the largest financial market in the world in terms of value and volume. It is also the most crucial network that facilitates the movement of foreign exchange for business and for governments. The need to exchange currency is inevitable due to the global nature of trade. This is the primary reason why Forex has developed as the most liquid financial market in the world. It outweighs the global stock market in terms of financial involvement and in the number of deals that take place. As of April 2013, the Forex market had an average trading of US$5.3 trillion per day.

The Forex market has no centralized controlling authority - the exchange is carried out over the internet. For a transaction to be made, the traders use computer networked over-the-counter (OTC) channel. The market is operational 24 hours a day and works in real time environment with the signals fluctuating every second. The Forex signal is generated either by the market analyst or by the automated market analysis system. It shows the preferable chances of entering into the trade for a particular currency pair. The analysis is supported by graphs and figures that depict entry, trailing stop and stop loss combo leads. This information is communicated through signalling, emails or through SMS alerts to the people involved in the trade.

The key secret to this market is "doing less". This has benefited my successful traders to achieve desired levels of profits. Here are some of the very basic tricks and tactics that help traders to thrive in such a volatile market.

• Trade for the Risk of Reward - Forex trade involves a risk-reward characteristic that dominates the scenario. The amateur traders in an attempt to play the safe game tend to risk minimal trading amount and often bear losses. As a result, many traders have wrecked their asset base. On the other hand, successful traders risk a certain amount of money for the reward of twice or thrice the recovery amount. The risk to reward ratio generally fluctuates between 1:2 and 1:3 but it is bound to serve good margins.

• Trade for Higher Time Frames - The exchange market is based on a real-time framework where the values fluctuate every second. The lower timeframe time consideration varies to the time constraint of a few minutes. While the longer timeframe is considered variation in a span of hours or a day. The traders who experience a boom in the market are not affected by meagre fluctuations. Such traders believe in bigger risks and bigger rewards over longer time intervals.

• Trade for Bigger Exchanges - The successful traders hunt for bigger trades. These traders understand the market policies and which trade will fetch a good profit. They do not believe in "quantity" rather they patiently wait for the right deal. On the other hand, the traders who pounce on every other deal tend to lose what they earn, and this may often result in significant loses and even bankruptcy.

The Best Forex Trading Signals

The Best Forex Trading Signals

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The Best Forex Trading Signals - Forex trading signals play a primary role in helping a trader decide whether to enter into a trade of a currency pair or not. The signals are determined by analysts - either human- or system-based - at a specific time and price. The analyser forecasts the currency exchange prices by analysing the market trends. This forecast information is then transmitted through various sources such as SMS alerts, emails, etc. and help form the basis of any currency trade.

Trading in Forex is a challenging, if not an impossible task without trade signalling tools. These tools help you enter the real world of foreign exchange business and take decisions based on accurate data. It indicates the time to buy, when to sell and provides information such as trailing stop and stop loss combo leads.

The Forex trading signals benefit the traders in the following ways:

• Guided Trading Signals - Trading signals indicate the best opportunities and corresponding actions for currency exchange. It is a good tool to understand when to enter the market, when to settle and when to exit. The information can be used not only by traders but also by market analysts, researchers and government institutions.
• Reliable Signals - The Forex trading signal proves to be a reliable source to forecast trends in the market. It has a well-developed trade monitor that transmits alerts as required by the investor. The better signal interfaces offer a host of customisation options that the users can use and profit from.
• Enough Time Before Investment -  The Forex tool sends alerts of the market fluctuation in time for the trader. It helps him or her to invest in nothing but the best deals. The Forex signal also depicts the changing trends well in advance to invest or call back the deal. This helps the traders to take the right calls and take advantage of the opportunities the market offers.
• Technical Analysis - It is a powerful tool that analysis the trends of the currency exchange. It helps formulate the graphs with indicators and extrapolate the graphs to estimate the currency rate with time. The visual interface helps to understand the movement of the market and find the trends that the trader can use to his or her advantage.
• User-friendly Interface - Currency trading is a complex affair to track. The user-friendly interface of Forex signals makes it easy for people to understand the different forces at play and use the understanding to make profitable calls.

Choosing the right trading signal provider has to be done with care. It must be designed in such a way that the signals are easy to understand. Check for the currency exchange alerts it offers. The tool must offer customization options to allow the customer to choose the set of currency pairs. The user interface should act as the investor's portal and give them a comprehensive view of their trades and profits. Another important aspect to take into consideration is the availability of technical support. As the market functions 24 hours a day, the trading signal must offer services to the customer in real time round the clock.