Winning Strategies With Forex Charts

There are two fundamental approaches for online Forex trading namely fundamental analysis and technical analysis. The fundamental Forex analysis do not rely on charts. IT merely depends on the political and economic indicators to move the prices up or down.

On the other side the technical analysis much more about predicting price movements based on the historical price activity. The economists use technical analysis to study the relation between price and time. In this blog, we are going to discuss about the winning strategies with Forex charts

In any of the trading sessions; the most actively traded currencies pair is the Euro and the US dollar. There are divided into left hand side and right hand side which forming a pair. Forex charges will always display how much of the currency on the right hand side is necessary to buy a unit of the currency on the left side.
For you to know when the best time to buy or sell a currency, the traders observes the price and time movement on the chart. The charting tools could be a bars, lines or a pivot point.

By using a Japanese candle stick. Longer candles will have had more price movement during the time that they were open. The top of a candle wick is the highest price for that currency while the wick’s bottom is the lowest price. A currency is bullish when the close of the candle is higher than the open. In simple terms this means that there were more buyers than there were sales during the opening time period. Sometimes the candles will not have wicks. The price opened and it dropped off until it closed.

However the Forex charts do not offer a bullet proof trading hints but they can help trader to understand the previous price for decision making. It would be good to use a combination of fundamental and technical analysis to gauge better and precise information in relation to pricing.

In conclusion the technical analysis helps you to predict the price movements and its not guaranteed. Hence better to use both the technical and fundamental analysis. The best online trading platform usually having both  in a single screen to help better decision making.