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Apr 3
2.9 Focus On Higher Grounds

This article provides all the tricks and tips that you need to know about forex charts. There are 5 things that you have to keep in your mind to understand forex chats.
To understand forex charts you need certain basic skills in forex, to better read forex charts.
Once you equip yourself with important skills, you will read your charts easily and quickly when you start practicing a real forex trading system.
By the time you end reading this article, you will be able to read forex charts, and also able to know the difficulties that might arise when reading forex charts, especially if you are not an experienced forex trader.
First do some basic revision regarding the basics of forex trading because this deals with how to read forex charts.
Every time each currency pair is quoted exactly the same way. For example, the EURUSD currency pair is all the time quoted as EURUSD, with the EUR considered as the base currency, and the USD considered as the terms currency, never the other way around. As a result if the chart shows EURUSD that the current price is unstable around 1,2155, this explains that I EURO will buy around 1,2155 US dollars.
As result your trade size (face value) is the amount of your base currency that you are trading. In this example, when you buy 100000 EURUSD, you are buying 100000 EUROs.
To understand 5 important steps on how to read a forex chart, let’s look at them.
1. if you want to strengthen your base currency you need to buy the currency pair, because you want to move up. your chart will go up to make profit on the trade. However, if you sell the currency pair for short term position it means you are looking for the chart of that currency pair to go down, for profit. It shows that you want the base currency to weaken against the terms currency.
Quite easy till now:
2. Time framed displayed have to be checked regularly. To find out the entry of a trade, several time frames are used. For example, a 4 hour and 30 minute chart is used to find out the complete movement of the currency pair, using MACD indicators for drive to hold up resistance lines, and then a 5 minute chart to search for a growth from a transitory plunge to find out the real entry.
Therefore, make sure that the chart you are looking at has the precise time frame for your study. To set up the correct time frame and indicators for your chart and for your trading system. Also save this layout for future use.
3. Forex charts always choose to display BID price not the ask price, which is on chart display. Price is always quoted with bid and ask. The present price of EURUSD may be 1,2055 bid and 1,2058 ask. Each and every time you buy, you buy at ask that is the higher of the 2 prices in the spread, and each and every time you sell, you sell at the bid that is lower of the two prices.
By using the chart price to find out the entry or exit, recognize that whenever you place an order to sell when the chart price is about 1,330. at that point this is the price that you?ll sell at supposing no slippage.
However, if you place an order to buy after the chart price is the same price, then in fact you will buy at 1,333. A system of forex will ascertain that is your order placed according to the chart price or is it that y ou need some extra protection while buying or selling.
You may select either ?stop if bid? or stop if offered? whenever you are placing stop orders to buy whenever the price increase above a certain level, or sell whenever the price falls below a certain level.
4. There are different time zone that the forex charts are set to, like GMT, New York time or any other time zone.
It is convenient to have a world clock accessible on your computer desktop, so that you can convert the different time zones. This is essential when you are trading foremost economic statements.
Your requirement is to convert the time of statement to your regional time and the chart time, so that you will be aware when the statement is made, and when you require to trade.
5. Lastly, check that the times on your forex charts agrees with the opening and closing of the candle. The soft ware you are using may be different from others.
The reason to mention this is that when you trade foremost economic statements, either by going in a trade that is based on the actions that occur after the statement, or by going away from a trade before the statements to avert getting stopped out in the course of it, then you have to be accurate as these trades are going on according to the happenings at the 1 minute without delay after the statement.
Therefore, you have it.
You possess 5 important keys to properly read forex charts that will help you to avert the errors that many forex learners make while looking at charts, and that will speed up your growth while you are looking at forex charts. and forex trading scheme that you are willingly to trade!
As you know this practice looking at forex charts very well now. Always keep these 5 points in mind. Last Updated on Thursday, 14 March, 2010 01:35

When I talked to most of the forex traders, they tell me that they almost always use forex trading Daily price charts. It can be because of the habit or may be many of us turn out to be forex trading at that stage that it has become a norm for us. Emphasizing too much on too much on forex trading charts but not the higher time frame, like monthly or weekly time frame. Is the ideal way for forex traders who are in neither way every day?

I have learned with experience that you can discover more about the character of a forex trading market, and its probably for the short term, by examining the forex trading weekly price chat not any other time frame.

Straightforward hind, like the Stochastic, and much more precise in giving oversol/overbought indicators as against the lower time frame forex trading charts. By including the Stochastic signs, such as, we can read the forex trading Daily price chat that it regularly attached whichever a the overbought or oversold tremendously for long period of time. On the other hand these rarely seen happen in forex trading weekly chart.

The Stochastic signal is a clear signal of the advantages of expenses most of the time seeing forex trading weekly price charts over that of the of the less time frames. Forex trading market phase are very much foreseeable on the higher more time frame forex trading charts as opposed to the Daily price charts.

Because majority of the forex traders emphasis on the Daily or intraday charts by a huge margin than the weekly or upper time frames, you can view this in the more inconsistent pattern creation viewed in these less time frame charts as trader put there buy and sell order to make forex trading market. For the rest of this article, I will only mention to the forex trading Daily price chart (less time frame and forex trading weekly chart (upper time frame).

Forex trading Weekly chat is focused view of mass psychology against the forex trading Daily chart. For example, about every day collects around 100,000 forex trader to the forex trading market and that every one makes one forex trading act each day. It means that every price Daily price bar stand for the mass psychology of 100,000 minds building 100,000 forex trading market actions. In comparison, a particular weekly bar then would stand for 500,000 minds building 500,000 forex trading market actions.

 

At present you may reflect on that I inch of a forex trading price chart could hold about 10 price bars, that I inch of forex trading market patters explains 1,000,000 mind and forex trading market actions for the forex trading Daily price pattern, even though 5, 000,000 for equal quantity of space on the weekly chart. When you reflect the work ?Mass?, that has more of it? Of course, the Weekly Chart.

Now, you have well defined view of where all these minds, when collected (that is to say, individual traders, commercial traders, Fund traders, etc), are intended over all. Day will come when the bears will over come the bulls. The following day the bull can overcome the bears. On the forex trading Weekly chart you can view the whole result more clearly than on the forex trading Daily price chart, furthermore with higher chances to decide which way the forex trading market is possible to go for the following short to intermediary term.

Whenever I try to analyze the Future and Commodities forex trading markets, the one chart I always took at to begin with is the forex trading markets chart, I find no reason to consider a forex trading Daily price chart without have some evidence to any possible direction the forex trading market is going to influence my preference on the forex trading Daily chart. Once it is evident to me that the “masses” are forcing ahead bullish or bearish, I can then see at the forex trading Daily chart and make my forex trading strategy in tune with the way the forex trading market drive is destined.

This is not my first article on the subject of focusing in more on the forex trading Weekly chart. That have duty to point out to my readers that how solemn I am about the task of forex trading Weekly charts can play in analyzing that how much I have faith that it will help get better the analysis of others as well if you can devote more time in using the forex trading Daily chats to read the forex markets for trading and not day trading, I inspire you to reflect on the bigger picture of forex trading market direction.

 


Technical Analysis

 

2.1 How To Read Forex Charts

2.2 Forex Trading System

2.3 Pivot Point In Forex

2.4 Perfect Forex Trading System

2.5 Ten Laws Of Technical Trading

2.6 Using Technical Indicators To Identify Trends

2.7 Trends And Corrections

2.8 Open Price And The ATR

2.9 Focus On Higher Grounds

2.10 Indication Of Trend Change In Forex

 


Forex Education

 

The Basics of Currency Forex Trading

Technical Analysis

Technical Indicators

Fundamental Analysis

Intraday Trading

Emotional & Behavioral Part

Risk & Money Management

Trading Guide