If you want to make money in the area of foreign currency exchange, you have to possess technical knowledge and stay focused on the capability of tracking the price rates by reading actual Forex charts. If you are not a professional in this area, you must quickly discover authentic Forex charts from the web or choose free charts. Meanwhile, the experts recommend to take the help of free chart recognition software and master on it so that it suited your business well.
Online market charts will allow you to know the currency values at any moment, even between short time gaps such as minutes to long intervals such as years. The graphs depicting the rates fluctuations may be line graphs, or bar diagrams or candlestick charts.
The first type, line chart, is very easy to interpret. It will help you to broadly check ups and downs of the currency prices. It will also help you track the current trend of rate change On the other hand, bar charts aren’t as lucid as line graphs, but still provide much in-depth information.
In short words, the length of a bar chart shows the amount of rise or fall in price, while the breadth indicates the duration, which has witnessed this. The chart shows initial and final rates, so that you could identify the range and whether it is a fall or rise. You can use pattern recognition software to interpret the bar diagrams and ease your task.
Candlestick charts were first used by the Japanese. They built them to plot their amount of their rice production. That’s when they became increasingly popular. Basically, they are similar to bar diagrams, but are colored, where each color is a code to signify the rise or fall in price. You can find the index written on the graph itself. That’s why candlestick plots are considered more user-friendly than bars. Once you are able to identify the particular pattern, you will be able to identify the market trend.
An actual Forex chart usually comes with a lot of technical indicators like trend, strength, volatility and cyclic movements. The market chart itself is useful, but this additional information will further ease your task of market analysis, allowing you to predict both movements in the market and market volume.