If you asked a regular person on the street for one image or symbol that best sums up trading, there’s a good chance that it would be a chart. And it’s easy to understand why; charts are an indispensable tool for thousands of traders around the world.
What Forex trading charts essentially do is pull together important information – like opening and closing prices, highs and lows – and makes it easy for traders to view. From a very quick overview of a market through to delving into the minutest of details, charts can be customised to be as useful as you want them to be. It’s up to each trader to decide how much importance they place on what charts have to say.
It’s also worth remembering that chart analysis is often more art than science. While the information that forms all the peaks, troughs and trend lines is exactly the same, the way in which one trader interprets that information is subjective so may differ from the next trader. And with different chart types like Candlestick, Bar or Line, each trader will have different ways in which they prefer to view their information.
To find out a bit more about how Forex charts are used, browse the following links. The ones we have collected here we think will make a great starting point.
1. Learn about common chart patterns
A brief run-down of the most commonly used Forex chart patterns and how to recognise them. The page covers Head & Shoulders, Triangles, Engulfing Patterns and the Ichimolu Cloud Balance.
2. How to Choose the Best Chart For You
This site gives a good introduction to the various types of charts and will help you decide which is the best chart for you. Covering the variety of options and discussing the benefits of each style of charting.
3. How to Read Candlesticks
With a simple and easy-to-read layout, this illustrated site shows you how to read Forex candlestick charts. The wikiHow article follows a step-by-step guide and detailed pictures to help you through.
4. How to use charts on MT4
If you use the MT4 platform for trading (as most traders do), this site has a guide to setting up and customising your Forex charts. The website uses simple, clear and well-labelled visuals and snapshots of the MT4 in its explanations.
5. How to Identify Trends on Charts
Part of a seven part ‘Introduction to Forex‘ guide, this page provides a quick summary on the technical analysis skills of identifying trends. The page also shows you how to add trendlines on your MT4 charts.
6. Forex Chart Walkthrough
A helpful guide that walks you through the basics of various types of Forex charts starting with candlesticks, trends and head & shoulder patterns. The walkthroughs are detailed yet simple to understand.