How to Read Forex Charts
Get access to up-to-date currency chart information., Select a time frame for your currency chart., Observe your currency chart for the desired time frame., Look for specific chart structures.
Step-by-Step Guide
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Step 1: Get access to up-to-date currency chart information.
In order to read and benefit from currency charts, you'll need to get them from a legitimate provider.
Most of the smaller traders and investors who profit from currency trading use charts that are offered directly from their brokerage services.
New online brokerage services often include tools, like currency charts, in order to help their clients understand current pricing. -
Step 2: Select a time frame for your currency chart.
One of the most important steps in using currency charts, or any other kind of financial chart, is to set a specific time frame.
The values that you view are only relevant to the specific time frames that you establish for them.
With a paper chart, you can crop the chart for your specified time frame, where online tools often enable the user to change the view to a specific time frame, for example, 1 day, 5 days, 1 month, 3 months, 6 months or 1 year. , You will see a line graph that represents changes and fluctuations in currency value over that period of time.
Look at your line graph against your Y axis.
The Y axis, or horizontal axis, for a currency chart most often indicates a comparative asset price.
When a line fluctuates, it shows how your selected currency performs against the currency or asset that is represented in the Y axis.
Check your X axis.
The X axis for your currency chart represents your time frame.
You will see that both of these axes have scaled, segmented values, where your line graph fluctuates in a variable way. , Advanced traders and others look for specific visuals in a currency chart to try to predict which way future prices will go.
Understand candlestick charting to take advantage of this advanced financial resource.
Candlestick charts show a range of traits for a specific trading day, with a top and bottom that illustrate price movement.
Many currency charts include candlestick charting, especially online ones, and by observing these charts correctly, you can know much more about the price than just how it has changed over a period of time.
Look for items like Fibonacci retracement.
A Fibonacci retracement is a specific kind of price spike or dip where a reversal can signify a general trend.
Read up on this sort of predictive tool and apply it to your currency chart observation.
Look for movement against moving averages.
Moving averages tell you how the price has changed over a longer time frame.
These may be helpful when you are viewing your currency chart. -
Step 3: Observe your currency chart for the desired time frame.
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Step 4: Look for specific chart structures.
Detailed Guide
In order to read and benefit from currency charts, you'll need to get them from a legitimate provider.
Most of the smaller traders and investors who profit from currency trading use charts that are offered directly from their brokerage services.
New online brokerage services often include tools, like currency charts, in order to help their clients understand current pricing.
One of the most important steps in using currency charts, or any other kind of financial chart, is to set a specific time frame.
The values that you view are only relevant to the specific time frames that you establish for them.
With a paper chart, you can crop the chart for your specified time frame, where online tools often enable the user to change the view to a specific time frame, for example, 1 day, 5 days, 1 month, 3 months, 6 months or 1 year. , You will see a line graph that represents changes and fluctuations in currency value over that period of time.
Look at your line graph against your Y axis.
The Y axis, or horizontal axis, for a currency chart most often indicates a comparative asset price.
When a line fluctuates, it shows how your selected currency performs against the currency or asset that is represented in the Y axis.
Check your X axis.
The X axis for your currency chart represents your time frame.
You will see that both of these axes have scaled, segmented values, where your line graph fluctuates in a variable way. , Advanced traders and others look for specific visuals in a currency chart to try to predict which way future prices will go.
Understand candlestick charting to take advantage of this advanced financial resource.
Candlestick charts show a range of traits for a specific trading day, with a top and bottom that illustrate price movement.
Many currency charts include candlestick charting, especially online ones, and by observing these charts correctly, you can know much more about the price than just how it has changed over a period of time.
Look for items like Fibonacci retracement.
A Fibonacci retracement is a specific kind of price spike or dip where a reversal can signify a general trend.
Read up on this sort of predictive tool and apply it to your currency chart observation.
Look for movement against moving averages.
Moving averages tell you how the price has changed over a longer time frame.
These may be helpful when you are viewing your currency chart.
About the Author
Debra Scott
A passionate writer with expertise in home improvement topics. Loves sharing practical knowledge.
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