How Do I Analyze Forex Trading Price Charts?
How Do You Trade Forex Price Charts?
A forex price chart is a representation of a sequence of forex prices plotted on a graph as a chart representation of forex price movements.
This forex price movement is then drawn over a period of time and this forex chart price moves drawn on the forex chart can be used to analyze the movement of a particular forex instrument so as to determine if the forex trend for that forex instrument is moving down or up.
Forex Price Charts
A Forex price chart provides a representation of forex price (drawn on the y-axis) against time (drawn on the x-axis) for forex instrument.
The movement of forex prices is drawn on these forex price charts. The forex chart can be drawn as candlestick forex price charts like the one shown below or as line forex price charts or bar forex price charts.
What is Forex Price Chart?
Technical analysis of forex charts is then applied to these forex charts by using forex trading tools provided by the forex trading software. For example forex MT4 platform provided forex indicators & forex line studies that can be used to analyze these forex charts.
Forex trading charts can also be drawn using different chart time frames.
The different chart time frames are used by different types of forex traders.
For example:
- Forex scalper use the 1 minute chart time frame and the 5 minute chart time frames
- Forex day traders use the 15 minute chart time frame and the 1 hour forex chart time frames
- Forex swing traders use the 4 hour forex chart time frame and the daily chart time frames
Chart Time Frames on MT4 Software
Periodicity just means forex chart time frames, in MT4 forex software this MT4 forex charts time frames toolbar is used to select which forex chart time frames to forex trade with.
Forex Price Chart Time frames
The forex price charts - chart time frames listed on the MT4 platform are:
- 1 Minute - M1 Forex Price Chart
- 5 Min - M5 Forex Price Chart
- 15 Min - M15 Forex Price Chart
- 30 Minutes - M30 Forex Price Chart
- 1 Hour - 1 H Forex Price Chart
- 4 Hours - H4 Forex Price Chart
- Daily - D Forex Price Chart
- Weekly - W Forex Price Chart
- Monthly - MN
Type of Forex Trading Price Charts
The three common types of forex price charts used in Forex trading are:
- Candlestick Forex Price Charts
- Line Forex Price Charts
- Bar Forex Price Charts
These 3 types of forex price forex charts are covered in the topic Types of Forex Trading Charts.
How Do I Interpret Forex Trading Price Charts?
