Online Forex Charts What Are Forex Charts and How Forex Charts Works: Forex charts and FX charts are graphs of past exchange rates centred on price and time.
By visualizing past exchange rates, it is possible to understand the flow of the market.
You can predict the future based on the past, predict the future from the appearance, and perform technical analysis.
Online Forex Charts- Candlestick Charts and Its Importance
Charts are represented in various ways, but mostly, they are generally represented by candlesticks.
A candlestick is a sconce that expresses price movements and is formed by four prices (opening price, closing price, high price, low price).
In addition to the daily bar, which represents daily price movements with a single candlestick, there are minute bars, which are represented by minutes, monthly bars, which are represented by months, and annual bars, which are represented by years.
In the case of short-term trading, it seems that many people refer to “1 minute” and “5 minutes”, and in the case of medium- to long-term trading, “daily”, “weekly” and “monthly”.
If the closing price is higher than the opening price, it is called a positive line, and if it is lower than the opening price, it is called a hidden line. It visually shows the strength and direction of the market.
Trends generally mean the direction in which the market moves, but they develop zigzag movements rather than linear ones.
There are three trends: uptrend, downtrend and flat trend.
An auxiliary line that makes it easier to understand the trend of a trend is called a trend line. The trend line is useful for identifying the turning point of the trend.
Support line (lower price support line)
The line connecting the low prices is called the support line (lower price support line). If the market falls beyond the support line, the market is more likely to fall further if the trend changes, and conversely, if the market cannot break below the support line, the trend will continue. Is more likely to rise from there.
Resistance line (upper resistance line)
Conversely, the line connecting the high prices is called the resistance line (upper resistance line).
If the market rises above the resistance line, it is more likely that the market will rise further if the trend changes, and conversely, if the market cannot break above the resistance line, the trend will continue.
Both the support line and the resistance line are attracting attention as psychological milestones, and the momentum of the market can be judged by whether they break above or below each line.
The moving average line is the line that connects the average closing prices of the past fixed period.
It is the most popular technical indicator and is used to make various buying and selling decisions such as trend decisions.
Typical examples are “Granville’s Law,” “Golden Cross,” and “Dead Cross.” Points for buying and selling on the moving average
Use moving averages with different periods
When the short-term moving average fell significantly slower than the medium-term moving average or the medium- to the long-term moving average, or when it remained flat thereafter, it pulled out from the bottom. Time is a golden cross and a buying point.
When the short-term moving average is in the medium-term, or when the medium- to long-term moving average rises significantly slower, or when it falls below the top to the level after that, it becomes a dead cross and the selling point
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