Forex Charts

Written by BK Shaw
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I love using forex charts when trading currencies. Unlike some of the slower moving commodities where patterns, or chart formations may take longer to develop, currencies move so quickly, there's lots to see on the charts. There are traders who do not pay much attention to current events or news at all for determining trades. They stare at charts all day long.

Traders have been analyzing all charts, including forex charts ever since we started keeping records of price movements. They discovered that markets can have a tendency to repeat themselves when they hit certain price levels. Traders can take their cues about when to enter or exit a market based on these price levels. Obviously if everyone is exiting a market at the same time, it can have a dramatic affect on prices!

There are different forex charts you can look at depending on your time line. If you are day trading, the spot forex market lends itself to this plan. You will want to look at short term charts like the ten minute and one hour charts. For entry and exit points, you might look at something as short as a one minute chart.

Learning about Forex Charts

You could turn this hobby into a lifelong study! At least with the internet having come so far, your education for the most part can be free as there are lots of tools and information to be found online. If you want to learn about charts from your broker, make sure he or she uses charts to trade with!

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