Learn the basic skills in Forex, such as how to read Forex charts, are of paramount importance.
The reason is that once you have mastered this essential skill, it would be easier and quicker when the time comes for you to start learning and training in a real Forex trading system.
Once you have finished reading this article, you will realize how to read Forex charts and even shock may occur when you read, especially if you have traded in Forex before.
First, let’s we review some of the basics of Forex trading, as some of them are connected directly to learn to read the charts.
Each currency pair prices are always displayed in the same way. For example Euro/Dollar keeps Euro Dollar, as the euro is the base currency with the U.S. dollar is the currency of the conditional or service, and then it will not be the same as the dollar comes first.
And if the chart shows Euro Dollar that the current price of the pair moves around 1.2155, this means that the euro can buy U.S. $ 1.2155.
The size of your position (nominal value) will be the amount of the base currency you trade. In this example, if you want to buy a $ 100,000 € that would mean you will buy 100,000.
Now look at the five key steps of reading Forex charts.
1. If you buy a currency pair, you should be aware that your expectations are directed to the high price of the currency pair to make a profit on this. In other words, you want to become more powerful than the base currency of the currency exchange.
On the other hand, if you sell the currency pair at the sales center, which means that it is expected that the currency pair moves down to make a profit. You want to weaken the value of the base currency in exchange for money.
It seems to be very easy so far.
2. Always check the displayed time window. Many commercial systems use multiple time frames to determine entry points. For example, the system can use a framework in four hours and 30 minutes to determine the general direction of the trend for the currency pair with some indicators such as MACD and momentum, or support and resistance lines, and then given to five minutes to see if the pricing table example, the temporary rise after the fall, and then determine the actual entry point.
This will ensure that you consider the appropriate period of time for reasons of analysis. The best way to do this is to put your time graphics charts and indicators to trade the system, and then save this design for future use.
3. With the majority of exchange rate regimes, the offer price is shown in the graph that the issue price. Always remember that the price will be displayed in the supply and demand (or view). For example, if the current price of the euro-dollar pair is 1.2055 1.2058 supply and demand (or view). When you buy, you have used the issue price, which are the two highest rates are in spread, and when it is sold, it is sold to the highest bidder between the two rates.
If you use an escalator to depend on the success and exit points, you should know that if you place an order to sell when the negotiated price chart, for example, 1330, this means that the price will be sold their hypothesis lower prices.
On the other hand, if you make an order up to the same price as the letter, in fact, you buy from 1.3333. Forex system determines whether the controls operations will be placed simply on the basis of changes in the price or if you need to create an additional barrier to the time of purchase or sale.
Also note that many trading platforms, placing stop orders (meaning buy when the price goes up to a certain level, or sell when the price falls below a certain level), it is can choose between "being with the offer" or "stop the supply."
4. You must be aware that, although included in the bottom of the graph are adjusted according to the specific time zone tables and graphs that can be GMT, New York or in other time zones provider Forex.
I think it is very useful for your clock showing different time zones around the world on your computer to allow the ability to convert between these areas. This is very important if you work on the most important economic news.
You will need to convert the time to announce the new time zone and on the local calendar, too, so you know when it will be published important new features to determine the time of the exchange.
5. Finally, check whether the timing used by Forex levels compatible with the closing and opening of the trading halt. Graphics program you use can work in settings other than those I have someone else.
Why talk about this, is that if you need to exchange important economic news, both for entering the transaction is based on a movement that occur after the publication of news or if you want to close a transaction before publication of this notice, to avoid trying to stop it at launch, so we must be very careful (to the minute!)
Because these operations are performed according to what happens after just one minute from the publication of this news, not after a long period of time!
Now maybe you now have that opportunity.
Now that you have the keys of the five Forex charts basic reading correctly and designs that will help you avoid the most common mistakes, which is where most novice traders in the examination of the table, which will increase the pace of their progress, while we watch programs drawings and diagrams Forex trading systems you want selected!
Now you have knowledge of the subject, and you can read the charts of Forex and put the fifth points in your mind.
You can now begin!
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