![]() The chart timeframe can be selected to showcase the trading data on the financial instrument you are analysing – for example a specific currency pair. The below image is an example of a forex chart using the EUD/USD currency pair. Exactly like other price charts, the x-axis shows the time while the y-axis represents the price. ![]() ![]() What is a forex chart?Ī forex chart shows the changing price of selected currency pairs over time. By incorporating technical indicators and analysing the chart from left to right (where the most recent price change is shown on the right side of the chart) traders can identify patterns and make an assessment on the probability that the asset will increase or decrease. The charts have a x-axis (horizontal axis) representing the time scale, while the y-axis (vertical axis) represents the price scale. The chart visualises a set period of time where trading activity is happening on the asset – anywhere between one minute to a day or a full week. They must understand how they work in order to conduct a technical analysis of the market they are looking to trade in. Price charts are one of the most important tools for beginner traders to learn. What are the main forex timeframes for charts?Ī price chart is a visual representation of a particular instrument's price over a set period of time – this could be a currency pair in forex trading, stock indices, precious metals or any other financial assets.By the end of this article, you will know how to read forex charts and be able to identify which chart types work (or don’t work) for you.īefore that, let's deep dive into exactly what the different types of trading charts are. In this article, we’ll discuss the three most commonly used forex chart types used by technical analysts and traders, while also highlighting some of their advantages and disadvantages. ![]() Charts can also show patterns, trends and other visual signals that can help traders identify trading opportunities. This is called 'reading the tape'.īut with the advent of charts, most traders utilise them for an easy and graphical interpretation of market movements. ![]() Before charts became the norm, traders only looked at the 'tape' or raw price movements to analyse the markets. ![]()
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