The forex chart is among the most basic tools in a forex trader’s arsenal.
Simply put, it is a graph of a particular currency pair’s performance over
a given period of time. Reading forex charts is essential to a trader’s
business, so it’s important to know how to read them and understand what
they mean.
Every forex chart will be labeled with a currency pair: EUR/USD, USD/GBP,
etc. Remember, all forex trading deals with different countries’ currency
in relation to each other. The EUR/USD chart, for example, tells you how
the euro and the U.S. dollar compare.
Along the bottom of the chart is the timeline — 15 minutes, an hour, a
day, a week, or some other period. Going up the right-hand side are
incremental amounts. For the EUR/USD (more…)