Forex charts are pictorial representations of figures/words/values of trades conducted in the currency market. The price is normally placed on the Y-axis while the changes in time on the X-axis.
These representations of Forex charts are based on data collected from all over the world thus are deemed to be accurate and. The information on these Forex charts is analyzed by professionals in two ways: fundamentally and technically.
Forex Analysis
Fundamental analysis is done by correlating trends in the charts and the events that happen in the market e.g. political, social, economic events and others.
Technical analysis is done by correlating the actual occurrences in the market and the established trend of operations.
Both ways of analysis have always ensured that traders have relative ease in interpreting the immense data from the ever changing currency market.
With the right analysis from these experts, you don’t have to rely on guesswork to make your trade in the currency market; by just looking at the Forex charts, you are able to make informed decisions. In addition, best interpretations are amassed to be based on facts and logic.
Types of Forex Charts
The Forex charts are normally tailored in various forms to suit the different needs of its targeted users. Some forms of the Forex charts commonly used include single currency charts (only one currency represented in the chart) and combination charts (two or more currencies in one chart). Examples of the above include line charts and candlestick charts.
image: Forex Promos
It is based on the heavy reliance of traders on the Forex charts that they come in weekly, monthly or even yearly durations to quench the never ending thirst by these traders. This mainly helps traders by noting valuable trends that are vital for avoiding losses or ensuring profits.
Online Charts
The increasing developments in technology have further simplified the once painstaking duty of drawing Forex charts. With just a mouse click, you can easily access real-time data from the internet and feed them into the computer software which in turn translates them into valuable charts.
In as much as the charts can be easily created and accessed, a trader should go further and keep a keen eye on the Forex charts. Most big movements in the Forex market start from minimal market breakouts so when you see some trend starting to crop in the charts whether to the positive or negative, take note and act knowledgeably.
Through the Forex charts, we are also able to know the real-time prices of currencies. This makes it very easy for buying and sales to occur thus increasing good circulation in the currency markets. As a final point, once you have proved that a tool works, keep on using it and avoid those that prove shaky and prone to losses.