"How to read charts or charts in Forex for beginners"

    As a forex trader, the ability to read charts or charts is a very important matter for you to do. The ability to read charts is included in the technical analysis capabilities that are important for a trader to have. The existence of charts will allow you as a forex trader to read price movements from time to time. With the graph too, you can determine trends and find patterns of price movements that can be profitable.

The benefits of charts in forex trading can be compared with tables. If a price data and its movements are displayed in tabular form, any existing movements will be very difficult for you to know. The existence of charts that turn data into visuals makes it easier for you to read the direction of price movements and make the best decisions.
Now, seeing the importance and benefits that can be obtained from the graph, it is very important to understand well how to read the graph correctly. We will discuss how to read charts that can be done by forex traders.

Understanding 3 Types of Charts in Technical Analysis


1. Line Chart

read other articles: 5 Common Beginner Trader Mistakes in Binary Options

    First, there is a line chart which is a very simple chart that is on the trading platform. Line Charts are shown as lines that will connect closing prices, for example trading is closed at certain prices in the past few days. Then, each level of the closing price will be connected to the existing straight line and you can easily see the general price movements within a certain period.


2. Bar Chart

    Now continue to the Bar Chart which starts a little complicated from the chart that we discussed earlier. This type of graph can provide information relating to opening prices, closing prices, highest prices, and closing prices that occur within a certain period. Because the Bar Chart provides the above information, it is not uncommon for people to call it the OHLC Chart (Open-High-Low-
Close).


3. Candlestick Chart

    From the name you might be wondering whether this graph has a relationship with candles. Your guess is not wrong, because this graph has a shape that is very similar to a candle. This one has the full name of the Japanese Candlestick Chart, so named because it is from Japan. This one graph has information that is very similar to a Bar Chart, but the only difference is the shape.
In general, the shape of a candlestick chart is white or black. When the color is white, it shows the opening price that is below. If the body is black, then the opening price is above. Thus, the body of the candlestick can describe the distance between the opening price and closing price within a certain period.

    When the opening price is below the closing price, this is called a bull candle. In technical terms it is called bullish which is used to describe rising price movements. When the candlestick position is above the closing price, it is called a bear candle. Or things that describe price movements that are down or currently bearish.

    After you have a good understanding of the various basic charts that are in technical analysis, then we will provide further discussion. This time the discussion will continue to read the current price
movements using the available charts.

read other articles: THIS "TIME IS MONEY !!!" BEST TIME FOR TRADING

-Graphics that show the trial of reverse direction

    This graph occurs when the market continues to decline and touches the oversold, so some traders use a buy or make a purchase strategy in order to reverse the direction of the trend. Furthermore, the market begins to rise from a saturated state and the market starts to break the existing trend line.



-Graphic Strengthening Trends Up

    If the chart has started to break through the trend line, traders start to think that the downward trend is over. When this happens, many traders make a buy option so that market conditions continue to rise.
Under normal conditions, the market cannot directly move straight, but it will make corrections in advance to ensure a strong upward trend.

-Graphics Domination Up Total

    After the trend strengthens, the trend situation becomes very strong and the market will continue to move quickly. This can happen because many traders start to buy long positions.
In a state of total upward dominance, there is still a correction that can occur, but this does not happen too much.

-Graphics begin to show weakening of the rising trend

    After the price goes up, the trader who starts making a purchase starts to decrease. This happened because the market to rise began to weaken. In addition, many traders began to close long positions, so the market had stopped moving.

-Graphic Start Horizontal / Flat

    In the next condition due to weakening caused by closing long positions, market conditions will start to stop and start to enter overbought conditions.
     When the above conditions occur, traders who have a top sell strategy start to enter the market and traders who have a long-term strategy start to see the trade go up. Then it will cause pull and push that makes flat and flat market conditions.

-Graphic Trial Reverse Games

    This graph occurs because the market begins to be in the saturation zone and the market starts to reverse direction down and back from the initial process. When this happens, then this is a normal movement for the short term. Because in the long run normal movements will be parabolic and irregular.

   The above pattern means that when the market is reversing in the long run, it will form a foundation that is very similar to a satellite dish. On the one hand when a correction is happening, the pattern will be irregular in shape.

   The explanation above shows the normal charts that often occur in the short-term forex market. The pattern of movement above is very important for you to know well, so you can make good decisions in trading.

   Hopefully the discussion we have said above can provide many benefits for you all.

Happy investing!

GET FREE ACCURATED SIGNAL TRADING

Tweet