Forex Live Chart - What You Should Know About Charts
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Forex live chart is a necessity if you are planning to do your own market analysis. '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.
The first step is to choose the currency pair to analyze from the drop down menu or other interface. Once you get the one that you want, choose the chart type, it typically comes in four types: Line, Bar, Candlestick, and Table. If you are a beginner, 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 represents a time frame. The top of the bar is the highest price and the bottom of the bar is the lowest price during that particular 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. Tips: Use the zoom function to see it clearly.
There are some things that you need to know when using forex live chart:
Understanding Support and Resistance
The market volatility can bring it anywhere and no one can predict it 100%. 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 go beyond 1.645, that means 1.645 is the resistance for EUR/USD during that time period.
- From January to May, the USD/JPY prices never fall below 90.070, that mean 90.70 is the support for USD/JPY in that time period.
Entry and exit point can be decided based on these support and resistance data. An orthodox strategy 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: A time when the price has moved passed support or resistance line is called breakout.
Indicators
A good charting tool will at least have the feature to add various indicators. Indicator is a mathematical calculation based on prices which you can use to help you make decision. For instance: MVA indicator can present you the average price for a certain period, EMA present you the weighted price calculation for a certain period, and so on.
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.
Article Source: Articlelogy.com
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