Before going to explain about the Forex charts let’s first discuss Forex. Though people related to trading firms are well versed in the Forex terminology in this article, let’s discuss it once more for them who might be interested enough but are imposing a little knowledge. Forex exchanged, commonly known as “forex” or “FX,” is the exchange of one currency for another at an agreed exchange price on the over the counter (OTC) market. Forex is the world’s most traded market, with an average turnover more than US dollar 5.3 trillion per day approximately.
What Are Forex Charts?
Forex traders have developed several types ofForex chartsto help depict trading data. The three main chart types are a line, bar as well as candlesticks. But Accordingly, if we analyze the market trade, for Forex traders, candlestick charts seem to be the market favorite. But what’s the reason for such favoritism while line, as well as bar charts, are equally simplified? As it’s easy to see as well as very colorful and exciting to be made. The diagram shows the open, close, low as well as high prices of a candlestick.
How To Read The Forex Charts?
Since Forex is the business of conversion and thus you are going to always compare the value of one currency to another, so Forex quotations are always come handy in pairs. Hence first of all while reading a Forex chart you need to know that the first currency is called the base; the second is called the quote. So when you want to buy a currency pair, you have to buy the base currency and sell the quote currency. So you have to follow this simple step before buying such trading option.
Well, a forex chart is simply the graphical representation of the exchange rates of the between two currencies. It also shows how the exchange rate of currency pairs has changed over time.
Also in terms of time shown in the chart depends on the particular timeframe an individual is going to select.
Thus with this handful details, it is now easier for you to check the chart accordingly regarding “Forex” trading process.
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