Home » Finance » Investing

Forex Charts - Don't Dare Trade Forex Without Them

Jun 17, 2008
These days forex charts are best prepared by software which study the historical and current data to generate the bigger forex pair picture for the forex trader. The trader may choose his charting software as per his needs. Most online forex dealers and brokers provide very good charting services free as part of their forex trading account packages.

Forex charts are graphs or tables indicating at any given time the conversions among currencies or the exchange. Some charts compare two currencies where as other charts may compare multiple currencies. Forex charts are handy, since not only do the charts provide visual aids, they monitor the foreign currency market or Forex, and provide up to date quotes. The charts keep accurate price records, which project what the results of each year will bring in the currency trade industry.

Forex charts are not something that can simply be glanced at and comprehended within a matter of minutes. The most successful traders take their time to fully evaluate and act upon the market data that is presented. Forex charts are essential in helping the trader find a currency's value in real time. It also spots trends and helps the trader understand complex information quickly. Forex charts are one of the most important things you need to learn in order to successfully trade in the Forex market. Without charting knowledge, you are very likely doomed to fail in the very liquid active forex market.

Forex charts are used by both fundamental and technical analysts. A fundamental analyst is trying to find a correlation between a trend seen on a chart and "macro" events that are occurring in such as political events or financial data releases. Forex charts are usually available online by joining a service. With the Internet most forex dealers offer charts free of charge to account holders. Charts remain very current and can be checked constantly. Forex charts are easy to interpret, especially for someone who has invested in or day traded stocks before. When looking at a real time chart of a stock, the stock trader has to select the chart period (1 day, 5 minutes, 15 minutes, etc.) and the ticker symbol of the desired stock. The same process is followed by the forex trader.

Currency trading is the largest financial market in the world. Players participating in currency trading within the Forex market are large banks like Citibank and Deutsche Bank, hedge funds, nationalized and government banks, multinational firms, financial institutions, private investors, and investment companies. Forex has a lot of benefits to offer the modern trader. Currency trading volume is relatively high 24 hours a day, but there are peaks in activity when the British, European, and US markets are open simultaneously, which is from 1 pm GMT to 4 pm GMT. Pacific Rim markets, such as Japan and Hong Kong, show a dip in their trading volume while there is extensive volume in the US market at the very same time.

Technical analysis is used to identify patterns of market behavior that have long been recognized as significant. For many forex chart patterns there is a high probability that they will produce the expected trading results. Price bars are a linear representation of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a specific time frame. Price ranges of high volume can indicate support when the stock is trading near a low just above a high volume area. Likewise, price ranges of high volume can indicate resistance when the stock is trading near a high just below a high volume area.

Forex charts help you to trade at a better win loss ratio, and gain an edge out of Forex trading. If you can afford it I suggest that you trade with a bank that offers retail forex trading, a large bank like Deutsche Bank is certainly safer with counter-party risk and offers an excellent free trading platform for your use as an account holder.

Online forex trading sites have a large variety of services for beginners, intermediate and skilled traders. Online sites often include education, training and other demos on how to start trading. Online forex trading requires only that you have access to the Internet as well as some initial capital to open the forex trading account. Your initial investment need not be too large, but realistically your chances of being successful at trading are improved when you open an account for at least a few thousand Dollars.

Of course, to obtain good results you must use careful money management in determining the size of your positions, in establishing stop loss points, and pay close attention to your forex charts. If you are careless in trading forex over time you will lose no matter how good your platform and charting service may be.
About the Author
If you are interested in forex Learn to Trade Forex before you risk real money. Spend some time at Forex Trading Guru for some useful insights before you get started. Even experienced traders may pick up some useful information.
Rating:
Please Rate:
(Average: Not rated)
Views: 263
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources