Are you new to the trading world and just wondering what exactly is this Forex charts and how can it be read? This is nothing new to any newbie as it might seem to be difficult at first as you are new to this trading process. First, you should understand that it is nothing tough as everything is simply easy and this chart will help you continue with good trading process thus making you an expert in the same field.
There are simple steps that are to be followed before you start reading and following this strictly will help you read it better:
- The lines that you see on the screen are to be noticed at first before you start reading the Forex chart. If it seems to be moving upwards, then it denotes you will need to BUY or open a long position. On the other hand, if it is pointing downwards, then it denotes you need to SELL.
- The time frame is the next thing that should be watched for. When it comes to the experts, they opt for differing time frames to select the perfect time for trading process. This can be set according to our own choice from 1 minute to several months gap. For quick profit making you can choose the 1 minute or 15 minutes one but with small trading deals.
- The “Bid” and “Ask” prices play a vital role and the broker is the one minting money by charging the difference between the two prices. The “Ask” is paid if you decide to BUY. At the same time, you pay the “bid” or the lower price if you decide to SELL. “Spread” is the term given to the difference between the two.
- London being the financial capital of the trading world, the Greenwich Time is to be noted in the chart to GMT when the markets are open and working. You should have a good knowledge about the currencies with which you are trading, especially the time of trading as the fall and profits of the market condition depends on the newest happenings in that place. Always keep a close watch over the latest and hottest news coming out of that country.
Always keep yourself updated with the world happenings to read and understand the Forex charts well by reading the above simple steps. With practice you are sure to get really experienced with these charts and days are not so far that you will also be reading it like a professional!