How to analyse Free Forex Charts For Real-Time Trading...
It
is crucial for any trader to observe & analyse the movements of currencies
when you trade in Forex. The traditional way of doing this was by drawing
charts & plotting these movements manually. However, this has given way now
to online Forex charts which are provided by direct trading platforms, brokers
as well as by various Forex charting software’s. These real-time forex charts
apps are free and very useful for the traders who are not able to get
sufficient information or analytics from their trading platforms or from the
brokers.
Forex charts may consist of various methods like the line charts, bar
charts, candlesticks, Heiken-Ashi and others. Each one of them has its own unique
feature and are being used by traders as per their learning's &
understanding. Let’s look at a few of them in brief.
Line Chart - The line chart is the simplest Forex
chart which indicates a curve of displaying the closing price of a selected
time period.
Bar chart – This is one of the oldest chart types
which displays opening & closing prices with both highs & the lows. It
represents lowest transacted price at the bottom of the vertical bar &
highest at the top.
Candlestick chart – It is also called a better version of
the bar chart. It is popular & commonly used by forex traders due to the
comprehensive view it provides of price fluctuations over a period of time. It
consists of 2 parts: the body & the shadows. The body of the candlestick
shows the range between the opening and closing prices and the shadows that
reflect the period’s peak and low prices.
Heiken-Ashi chart - It is an improved candlestick that uses
averages to track trends is normally used by skilled traders. It averages the
current and preceding candlestick’s high, low, close, and open prices by a
mathematical formula.
Forex
charts are beneficial to trader from a real-time trading perspective as they
depict financial visualization & showcase historical behavior of a
currency which includes but is not limited to price movement through various
time frames, patterns & market indicators. There are multiple ways in which
one can start with Forex, however is it often advisable to spend some good
amount of time looking and understanding Forex charts & the various free Forex
chart apps which help in real-time trading.
It
would be an ideal scenario if your trading platform is capable enough to
provide you with all the trading chart analysis, however the lack of these
features has resulted in many traders opting for Forex charts that allows them
to perform everything they needs in terms of analysis & predictions.
There
are plenty of free Forex charts options available in the market which aid traders
in decision making basis the technical analysis & forecast on whether to
make a trade or exit it which is part of real-time trading. We are very well
aware that patterns repeat themselves when trading Forex & if one can
analyse the chart and understand unique entry points, it will make trading more
predictable and thus profitable.
The
selection of the best Forex chart depends on the needs & style of the
trader, it shouldn’t be the best but the most fitted towards fulfilling your
requirement of charting & trading.
Cost
is important for every trader & they need to choose between Paid & Free
charting solutions basis the offering of the features by the service providers.
However, for any trader starting with a free Forex chart for real-time trading should
be a top priority in order to be at par with the market.
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