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How To Read Forex Charts?
Learn about the trend of an investment vehicle and trade accordingly. It detects price fluctuations and live forex movements; you earn your earnings from the moves you make. The most reliable way to determine Forex trends is to use technical analysis methods. As you can understand from this chain, the way to make money with forex is to read the charts correctly and integrate these analyses into your investments. So, how to read forex charts?

Basic Rules Of Graph Reading

The first rule in graph reading operations, which is considered the most important stage of technical analysis, is to have information about what graphs mean. You need to lay your foundation by learning the meanings of graphs and the information they give. Once you know the meaning of the lines, on MetaTrader trading platforms, you can see the forex instant price charts and simply understand which direction the investment vehicle will go. The second rule is to follow the charts regularly. In this simple process that you will perform over the Internet, all you have to do is check the graphics regularly. But first, it is worth mentioning which graphs to use.

Line Charts

It is the simplest type of chart to use, giving basic information. Line charts are drawn according to the closing price. In this chart, you'll see only closing prices. At a time when you don't have time, they allow you to quickly comment on price changes.

Candlestick Charts

The most commonly used chart type is the candlestick chart. Candlestick charts, a Japanese invention, show supply-demand ratios. Each candle body provides information about the highest and lowest price parity in the specified time interval. In the top region, it indicates the highest price and the one greater than the opening closing prices, while the lowest section indicates the lowest price and the one less than the opening closing prices. The middle part of the candle indicates to the investor that the price is falling or rising. Different colors represent the price movements shown on the body.

Bar Charts

It shows the same details as candlestick charts. Bar charts are less preferred because they are not as easy as candlestick charts. But they still have a very understandable structure. They don't have bodies like candlestick charts, you learn that the price is falling and rising from short lines drawn on the right and left sides of the bars. The line to the left of the bar chart gives the opening price of the pair, and the line to the right gives the closing price. Positioning these lines at the bottom or top indicates a decrease or increase in the price.

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