To become a successful forex trader and to maximize profit, knowledge of chart patterns and price movements is very important. There are huge numbers of price charts through which trend reversals, buy/sell/hold points etc can be determined. The Price charts I follow are:
1. LINE CHARTS: All the price movements of currencies are plotted on the y-axis and the time on the x-axis. Each time the price change, the change is displayed on the chart. This gives traders the accessibility to examine currencies more minutely while also enabling them to spot the trends according to the duration of their investment.
A line chart’s has a simple design, displaying the currency’s closing price.
2. CANDLESTICKS: These are just like bar charts having four basic elements, the LOW, HIGH, OPENING and CLOSING price of a specified time period. It can be solid or transparent or empty. If closing price is lower than opening price the stick is solid or filled. The two dash line on the candle represents the high and low points.
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