How to read forex charts like a pro

When we analyze the forex chart, we see that the bottom of the vertical bar shows the lowest traded price, and the top position shows the highest price. That vertical bar shows a trading range of currency pairs,


 How to read forex charts like a pro

Forex charts are consolidated market data that tell us about present currency value, and with its trend, we can predict the upcoming valuation of the pairs. These charts help us understand the few hours and days' pricing trends to take our decision to trade.

When we analyze the forex chart, we see that the bottom of the vertical bar shows the lowest traded price, and the top position shows the highest price. That vertical bar shows a trading range of currency pairs, and we see these ranges as a recent trend. We can see back for hours and a few days to understand the trend if that is going higher several times or losing position.

Today I will share some top-notch tips to understand the forex charts, and you can apply them to predict and take your trading decision in a better way.

Easy way to analyze Forex Charts

We find three types of charts in Forex: Line, Bar, and Candlestick. A bar chart is the most common type where we can observe and analyze data easily. The short method is as below:

  • The left side data of the vertical line is the open price.
  • The right-side data of that vertical line is the close price.
  • The top price position is the highest price, and
  • The lowest point of the bar is the low price.

Now, the process of prediction is easy. If you see that the close price is higher than the open price and trending, then the currency pair is doing well, and you have a better possibility of making a profit from this trading.

On the other hand, if you see the closing price is lower than the opening price, it is losing value, which will be a losing trade if you invest money in that. This is the primary analysis for Forex Charts.

Tips for finding the Forex Chart pattern

We generally observe forex charts to understand the pattern and predict for trading. Here are some short tips that will be helpful for you.

  1. Match the price trend between the Chart pattern and the Candlestick pattern
  2. Combine the patterns with technical indicators
  3. Cross-check with conditional orders with available data

To elaborate, the chart patterns do not match all types. For example, if you see that the chart pattern and candlestick are not similar, that is creepy. The currency pair data pattern should be matching, and by analyzing that with conditional orders, you can do trading. It would help if you focused on the fact and then predicted trading.

In-Depth Chart patterns Analysis Process

As we have discussed quick tips on Chart pattern analysis, I will discuss the process in detail here. Let's try to make it as simple for you as you can follow these.

You have to observe the currency pair price from the opening price position; it will give you a clear idea about the market trend. You will be able to see the price increasing and decreasing through these bars. Then you have to analyze it with conditional technical orders and experts’ guidance for assessing how the price is fluctuating, and if that is going in a positive line, then you can do trading. We have to predict the price with the previous price point.

Evaluating the risk is another important matter. We have to observe the trend and find the neck and head position of the trend. To elaborate, we have to find when the price is increasing; we can make a profit when the price reaches the neck and head of the price trend. We do it based on the previous trends and chart analysis from the open price. If we can find the points, we have to use the Stop Loss function at the shoulder, as when the price reaches the neck or head, it will trade and sell at a higher price.

Similarly, suppose you can identify the head of the price trend when it increases. In that case, you can sell at a reasonable price; you can set stop loss function when the price is going low, then you can buy at a specific price when it reaches a certain point where you will be able to buy at less price.

There are several conditional orders like limit order, stop-limit order, and stop order; use them to do your trading in a controlled way. There are more advanced conditional orders like GTC, GTD, and OCO, those you can apply to play safe. It would help if you studied more on these orders from experts' blogs and technical guides.

Keep an eye on the market situation and trends; here, you can get additional information to influence your currency pair price. For example, the Russian ruble price is higher due to the recent war, so you can make a trading decision based on this information and prediction.

There are more issues related to these things and processes like how to predict forex charts and candlestick charts. But according to my observation, the Bar chart is the best chart for forex trading that you can use for analysis.

Role of Candlestick chart in Forex Chart Analysis

Most traders analyze the Bar chart for market data and trends, but candlestick charts also play a crucial role here. I will share how you can use a candlestick chart for your market analysis.

You must pick a currency pair and then see the recent trends to understand the open and close prices.

Pick a period for analyzing the data; you can analyze one day; here, you will get 24 sticks; you can analyze for one week too. Here you can see the price trends; try to find the similarity as when the price gets high and when it goes low, you have to find the trend.

You have to analyze the bullish and bearish candles. When the closing price is higher than the opening price, it is a bullish candle and a profitable trend. Here you can do trading, and those are positive indicators. If the opening price is higher than the closing price, this pair is losing value; it is a bearish candle. Make predictions with the candles and proceed on trading if you think necessary.

Identify the higher and lower points of the candle to find the neck, shoulder, and head positions. If you can identify that correctly, you can use the Stop-loss function and other features to do safe trading.

Understand the candle types as big candles and Doji candles, find their relative position on the chart and then proceed with your prediction and trade when necessary.

I have elaborated the whole matter easily so that you can use them properly and become a pro in chart analysis.

Last words

Understanding the forex charts will improve your trading journey; I have shared and discussed all the standard methods you can apply and make your task easier. Additionally, you can follow expert traders' blogs and telegram channels to learn more in-depth strategies.

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How to read forex charts like a pro

When we analyze the forex chart, we see that the bottom of the vertical bar shows the lowest traded price, and the top position shows the highest price. That vertical bar shows a trading range of currency pairs,


Allforexrating

Forex charts are consolidated market data that tell us about present currency value, and with its trend, we can predict the upcoming valuation of the pairs. These charts help us understand the few hours and days' pricing trends to take our decision to trade.

When we analyze the forex chart, we see that the bottom of the vertical bar shows the lowest traded price, and the top position shows the highest price. That vertical bar shows a trading range of currency pairs, and we see these ranges as a recent trend. We can see back for hours and a few days to understand the trend if that is going higher several times or losing position.

Today I will share some top-notch tips to understand the forex charts, and you can apply them to predict and take your trading decision in a better way.

Easy way to analyze Forex Charts

We find three types of charts in Forex: Line, Bar, and Candlestick. A bar chart is the most common type where we can observe and analyze data easily. The short method is as below:

  • The left side data of the vertical line is the open price.
  • The right-side data of that vertical line is the close price.
  • The top price position is the highest price, and
  • The lowest point of the bar is the low price.

Now, the process of prediction is easy. If you see that the close price is higher than the open price and trending, then the currency pair is doing well, and you have a better possibility of making a profit from this trading.

On the other hand, if you see the closing price is lower than the opening price, it is losing value, which will be a losing trade if you invest money in that. This is the primary analysis for Forex Charts.

Tips for finding the Forex Chart pattern

We generally observe forex charts to understand the pattern and predict for trading. Here are some short tips that will be helpful for you.

  1. Match the price trend between the Chart pattern and the Candlestick pattern
  2. Combine the patterns with technical indicators
  3. Cross-check with conditional orders with available data

To elaborate, the chart patterns do not match all types. For example, if you see that the chart pattern and candlestick are not similar, that is creepy. The currency pair data pattern should be matching, and by analyzing that with conditional orders, you can do trading. It would help if you focused on the fact and then predicted trading.

In-Depth Chart patterns Analysis Process

As we have discussed quick tips on Chart pattern analysis, I will discuss the process in detail here. Let's try to make it as simple for you as you can follow these.

You have to observe the currency pair price from the opening price position; it will give you a clear idea about the market trend. You will be able to see the price increasing and decreasing through these bars. Then you have to analyze it with conditional technical orders and experts’ guidance for assessing how the price is fluctuating, and if that is going in a positive line, then you can do trading. We have to predict the price with the previous price point.

Evaluating the risk is another important matter. We have to observe the trend and find the neck and head position of the trend. To elaborate, we have to find when the price is increasing; we can make a profit when the price reaches the neck and head of the price trend. We do it based on the previous trends and chart analysis from the open price. If we can find the points, we have to use the Stop Loss function at the shoulder, as when the price reaches the neck or head, it will trade and sell at a higher price.

Similarly, suppose you can identify the head of the price trend when it increases. In that case, you can sell at a reasonable price; you can set stop loss function when the price is going low, then you can buy at a specific price when it reaches a certain point where you will be able to buy at less price.

There are several conditional orders like limit order, stop-limit order, and stop order; use them to do your trading in a controlled way. There are more advanced conditional orders like GTC, GTD, and OCO, those you can apply to play safe. It would help if you studied more on these orders from experts' blogs and technical guides.

Keep an eye on the market situation and trends; here, you can get additional information to influence your currency pair price. For example, the Russian ruble price is higher due to the recent war, so you can make a trading decision based on this information and prediction.

There are more issues related to these things and processes like how to predict forex charts and candlestick charts. But according to my observation, the Bar chart is the best chart for forex trading that you can use for analysis.

Role of Candlestick chart in Forex Chart Analysis

Most traders analyze the Bar chart for market data and trends, but candlestick charts also play a crucial role here. I will share how you can use a candlestick chart for your market analysis.

You must pick a currency pair and then see the recent trends to understand the open and close prices.

Pick a period for analyzing the data; you can analyze one day; here, you will get 24 sticks; you can analyze for one week too. Here you can see the price trends; try to find the similarity as when the price gets high and when it goes low, you have to find the trend.

You have to analyze the bullish and bearish candles. When the closing price is higher than the opening price, it is a bullish candle and a profitable trend. Here you can do trading, and those are positive indicators. If the opening price is higher than the closing price, this pair is losing value; it is a bearish candle. Make predictions with the candles and proceed on trading if you think necessary.

Identify the higher and lower points of the candle to find the neck, shoulder, and head positions. If you can identify that correctly, you can use the Stop-loss function and other features to do safe trading.

Understand the candle types as big candles and Doji candles, find their relative position on the chart and then proceed with your prediction and trade when necessary.

I have elaborated the whole matter easily so that you can use them properly and become a pro in chart analysis.

Last words

Understanding the forex charts will improve your trading journey; I have shared and discussed all the standard methods you can apply and make your task easier. Additionally, you can follow expert traders' blogs and telegram channels to learn more in-depth strategies.

# Forex Broker Year Status For Against Type Regulation Leverage Account Advisors
1 Allforexrating xChief 2018 47% 4% ECN/STD VFSC, CySEC, FSA 1:400* 10 Yes
2 Allforexrating OctaFX 2011 41% 3% ECN/STD SVGFSA, CySEC, FCA, SVG 1:1000* 10 Yes
3 Allforexrating ATFX 2017 35% 3% Broker/NDD FCA, CySEC, FSCA 1:400* 100 Yes
4 Allforexrating IEXS 2023 20% 6% ECN/STP ASIC, FCA Up to 1:500 100 Yes
5 Allforexrating Uniglobe markets 2015 20% 3% ECN/STP Yes Up to 1:500 100 Yes
6 Allforexrating Youhodler 2018 20% 2% Exchange EU (Swiss) licensed Up to 1:500 100 Yes
7 Allforexrating TradeEU 2023 18% 4% CFDs CySEC 1:300* 100 Yes
8 Allforexrating RoboForex 2009 16% 4% ECN/STD FSC, Number 000138/333 1:2000* 10 Yes
9 Allforexrating Axiory 2011 15% 5% Broker, NDD IFSC, FSC, FCA (UK) 1:777* 10 Yes
10 Allforexrating FBS 2009 13% 4% ECN/STD IFSC, CySEC, ASIC, FSCA 1:3000* 100 Yes
11 Allforexrating WAYSTRADE 2015 13% 6% ECN/STP No 1:400* 100 Yes
12 Allforexrating World Forex 2015 12% 10% ECN/STP FSP Up to 1:400 100 Yes
13 Allforexrating RaiseFX 2022 11% 6% ECN/STP (FSP 50455) Up to 1:500 100 Yes
14 Allforexrating Yamarkets 2018 11% 2% ECN/STD VFSC, MISA, 1:1000* 100 Yes
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