Forex charts are useful to conduct the fundamental as well as technical analysis of currency pairs and are very beneficial for a trader. The Forex traders are able to view the historical data of the foreign exchange currency rates through the charts. Every Forex trading provider provides his own charts but the benefits of Forex charts are similar for the traders to trade efficiently.
Benefits of Forex charts
- Helpful in visualizing the environment of Foreign exchange market.
- Helpful in better forecasting and determining the behavior and patterns of the Forex market.
- They are helpful for technical as well as fundamental analysis of Forex currencies.
- The technical analysis refers to the actual occurrence of the events with known patterns
- The fundamental analysis refers to analysis of correlation between trends visible on charts and macro events such as political and others.
How do Forex charts work?
An understanding of the support levels and the resistance levels of the market is done through the charts. The indicators are understood that need to be lined up to show whether it will hold or break. Considering all these things a Forex strategy can be formalized in a short period of time at XFR Financial Ltd. If you really want to get benefits from the FX charts then you should join a good service to receive charts and assistance in reading and understanding them well.
Different types of Forex charts at XFR Financial Ltd
There are different types of charts used in the Forex market and XFR Financial Ltd shows the most common ones.
Line charts- These are the simplest forms of Forex charts and are based on the closing rates at each unit of time and this result in the formulation of a homogenous line. This type of chart gives the best way to formulate the resistance and support levels of the market at a particular period.
Point charts- These charts are based on price and the linear representation is not provided with time.
Bar charts- These Forex charts have 3 rates separately shown at each point of time. They are high, low and closing rate. There are also some bar charts which also include the opening Forex rate for certain period.
Candlestick charts- They show price at opening, closing, highs and lows and this is represented in the form of candle for the each time selected. The dark candle shows a decline and the empty or transparent candle shows an increase. The complete candle represents the entire range between each time period selected in the chart.
Things to be noted while using FX charts
One important thing to be kept in mind while using the FX exchange charts with XFR Financial Ltd for predictions is that the trader should avoid depending on FX charts only for them. There are other factors also involved and the judgment of the individual trader is also important. But yes understanding of the FX charts is important to make better profits in the field of Forex trading and trade sensibly.