FOREX CHARTS

Forex Market Charts:

Trading in global exchange (forex) markets involves having the necessary knowledge to understand movements in many currency markets worldwide. Forex trade, that is basically the buying and selling of currencies, like the forex market, is very technical. This is the reason for the call of studying forex charts.

A forex chart is the primary tool used by forex traders to help them see patterns and abnormalities in the currency markets. This patterns or trends are used to forecast possible future movements in the market. Forex traders use forex charts as technical tools if they want to gain success in the market.

Some of the forex charts that are commonly used are:

1. Candlestick chart :

Shows the opening, closing, highs, and lows of forex prices or currency rates, and represents them as a kind of candlestick with a wick at each end.

2. Bar chart :

Shows currency movement and therefore currency price

3. Point and Figure chart :

Essentially like the bar chart but Xs and Os are used to show changes in price direction

4. Line chart :

Shows the exchange rate of a given pair of currencies in a given period of time. Forex Market Charts