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Quick leaner - candlestick chart bar session

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Forex trading charts can be categorized into tick chart, minute chart, hour chart, daily chart, intraday chart and monthly chart. So for newbies, how to read the trading charts? How to use trading charts for better forex trading? Today let me teach you how to read trading charts.


Based on the different periods, the movement of the price in the forex market can be categorized into ticket chart, minute chart, hour chart, daily chart, weekly chart and monthly chart, etc. Different trend chart has its unique characteristics. If you don’t know these characteristics, the technical analysis tools will be meaningless. Forex trading charts can be categorized into tick chart, minute chart, hour chart, daily chart, intraday chart and monthly chart. So for newbies, how to read the trading charts? How to use trading charts for better forex trading? Today let me teach you how to read trading charts.


Based on the different periods of time, the movement of the price in the forex market can be categorized into ticket chart, minute chart, hour chart, daily chart, weekly chart and monthly chart, etc. Different trend chart has its unique characteristics. If you don’t know these characteristics, the technical analysis tools will be meaningless.

 

Quick leaner - candlestick chart bar session

 

Many investors are used to looking at the tick chart while trading. When tick chart moves, they are in. Some people will buy in as per the planned price, but when the tick chart declines, they will hurriedly cut off the order, these are the behaviours from people who don’t understand tick chart. The main purpose of the tick chart is to record the precise price. Its movement direction will change at any time. Under normal circumstances, the tick chart doesn’t fluctuate a lot.


The movement of the forex price is basically in fluctuation. While the big wave is rising, many small waves are falling in the middle. Therefore, when the tick chart is on the rise, 5-minute chart price is probably declining, while tick chart might rise and fall many times during the 5 minutes. Therefore, experienced investors won’t be led by a tick chart. Some investors will avoid looking at tick chart after buying as planned, just in case, it will interfere in their emotions.

After doing specific research on a tick chart, you can find out that it’s more than just precise and volatile, it’s also sensitive. For example, when Deutsche mark’s cross-trade rate is stronger than the pound, investors have the orders of buying the pound. When pound price is rising and meets resistance level, investors can refer to mark tick chart because the mark is stronger, so its tick chat might break the resistance level first, and pound orders are not in a hurry to close a position.

Also, when buying as planned but without precise resistance level, plus you have lost dozens of points, you can watch the tick chart closely. If the price is broken, you should consider getting rid of loss orders. Many investors are used to looking at the tick chart while trading. When tick chart moves, they are in. Some people will buy in as per the planned price, but when the tick chart declines, they will hurriedly cut off the order, these are the behaviours from people who don’t understand tick chart. The main purpose of the tick chart is to record the precise price. Its movement direction will change at any time. Under normal circumstances, the tick chart doesn’t fluctuate a lot.
The movement of the forex price is basically in fluctuation. While the big wave is rising, there are many small waves falling in the middle. Therefore, when the tick chart is on the rise, 5-minute chart price is probably declining, while tick chart might rise and fall many times during the 5-minute period. Therefore, experienced investors won’t be led by a tick chart. Some investors will avoid looking at tick chart after buying as planned, just in case, it will interfere in their emotions.

 

Quick leaner - candlestick chart bar session

 

After doing specific research on a tick chart, you can find out that it’s more than just precise and volatile, it’s also sensitive. For example, when Deutsche mark’s cross-trade rate is stronger than the pound, investors have the orders of buying the pound. When pound price is rising and meets resistance level, investors can refer to mark tick chart because the mark is stronger, so its tick chat might break the resistance level first, and pound orders are not in a hurry to close a position.

In addition, when buying as planned but without precise resistance level, plus you have lost dozens of points, you can watch the tick chart closely. If the price is broken, you should consider getting rid of loss orders.

Compared to the volatile tick chart, the 5-minute chart is more stable. The 5-minute chart is sensitive to the resistance level price and support level price, which is a good time for buying and selling.

Technically, lots of methods of technical analysis used for the 5-minute chart will bring down reliability. Because the 5-minute chart is only sensitive to the resistance level and support level, but its fluctuation usually doesn’t implicate the movement direction. The resistance level found out through the 5-minute chart only is usually not strong.

Most of the investors are used to do short terms, especially closing a position before the daily closing bell of the market. For this type of investors, their best trading tool is not tick chart or 5-minute chart but 15-minute chart and hour chart. Compared to the volatile tick chart, the 5-minute chart is more stable. The 5-minute chart is sensitive to the resistance level price and support level price, which is a good time for buying and selling.

Technically, lots of methods of technical analysis used for the 5-minute chart will bring down reliability. Because the 5-minute chart is only sensitive to the resistance level and support level, but its fluctuation usually doesn’t implicate the movement direction. The resistance level found out through the 5-minute chart only is usually not strong.

Most of the investors are used to do short terms, especially closing a position before the daily closing bell of the market. For this type of investors, their best trading tool is not tick chart or 5-minute chart but 15-minute chart and hour chart.

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