A Beginners Guide To Trading Forex

Forex Charts and Indicators

Charts And Indicators

As we have seen, making money with forex trading involves identifying a trend or predicted price movement in one direction or the other. If we think the value of the EUR will rise in relation to the US dollar, we buy EUR/USD, or take a long position (go long). If we think it will fall, we sell, or go short.

The most popular way to identify trends as they are forming is by the use of technical analysis, or charts and indicators.

Forex Trend Detector

Line charts

Line charts simply plot each closing price and join them with a line. The rise and fall of the line shows the general movement of a currency pair. However, it does not show movements within the trading period, only the close.

Line Chart

 

Next Page: Forex Bar Charts

 

 

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