Learning basic forex skills, such as how to read graphic Forex charts, is critical.
The reason for this is that once you have mastered this vital skill it will be easier and faster when the time begins to learn and train on one of the real Forex trading systems.
Once you have read this article, you will be aware of how to read Binary Option Club Trading charts and also the pitfalls that you may encounter when reading them, especially if you have not traded in Forex before.
First, let’s review some of the fundamentals of forex trading because some are directly related to learning how to read graphs.
Each currency pair is always quoted in the same way. For example, the Euro Dollar is always the Euro Dollar, where the Euro is the base currency while the US Dollar is the currency or the equivalent, so it will not be the same when the US dollar comes first.
Thus, if the EURUSD chart shows that the pair’s current price is trading around 1.2155, this means that the single currency can buy $ 1.2155.
The size of your transaction (nominal value) will be the amount of the underlying currency you are trading. In this example, if you wanted to buy 100,000 Euros, this would mean you would spend 100,000 Euros.
Now let’s take a look at the five key steps in reading Forex charts.
1. If you are buying a currency pair, that is, you are in the position of buying, you should be aware that your expectations are moving towards a higher currency pair so you can make a profit in this transaction. In other words, you want the base currency to become stronger against the opposite currency.
On the other hand, if you sell the currency pair at a sell position, this means that you expect the currency pair to move lower, so you can make a profit. Here you want to weaken the value of the base currency against the opposite currency.
It seems so easy now.
2. Always check the time frame displayed. Many Trading Systems use multiple time frames to identify entry points. For example, the system may use the 4-hour and 30-minute frames to determine the overall trend of the currency pair using some indicators such as MACD and momentum or support and resistance lines, and then look at the 5-minute chart to see whether the price will rise after falling And then specify the actual access point.
So make sure you look at the right time frame for your analysis considerations. The best way to do this is to base your graphics using the appropriate time frames and indicators for the system you’re trading in, and then save that design for later use.
3. With most Forex charts, the bid price is what is displayed on the graph at more than the price of the question. Always remember that the price is displayed in the form of a bid and a question (or offer). For example, if the current price of the EURUSD is 1.2055, the number will be 1.2058 (or bid). When you buy, you use the price of the question, which is the highest price displayed in the spreads, and when you sell, you sell at the price of the tender, which is the lowest between the two prices.
If you use the price chart to determine entry and exit points, you should be aware that when you place a sell order when the price of the graph is for example 1.330, this means that it is the price you will sell on the assumption that there is no price slide.
On the other hand, if you place a buy order at the same price as the chart, you will actually buy at 1.3333. The Forex system will determine whether your trades orders will be placed simply according to the price of the chart or you need to place an additional barrier when you buy or sell.
Also note that with multiple Binary Option Club Review trading platforms, when you place stop orders (ie when the price rises above a certain level, or sell when the price falls below a certain level), you can choose either “stop with the offer” or “stop with the offer”.
4. You should be aware that the times shown at the bottom of the chart are adjusted according to the time zone in which the FX graphic provider operates, which may be GMT, New York or other time zones.
I think it’s handy to have an hour that displays the different time zones in the world on your computer so that you allow the ability to convert between these time zones. This is very important if you are doing important economic news.
You will need to convert the time of advertising these news to your local time and the timing of the chart as well, so you will know when these important news will be announced to determine the timing of their trade.
5. Finally, check whether the timing of the Forex charts you are using is consistent with the closing and opening levels of the trading hanger. The graphics program you use may work in different settings than someone else’s.
The reason for this is that if you need to trade important economic news whether to enter the deal based on moves that occur after the news or if you want to close a deal before the announcement to avoid trying to stop it during its issuance, therefore must be very accurate (Per minute!)
Because these deals are implemented as happens after only one minute of the issuance of these news and not long after!
Now maybe you have this skill.
You now have the five essential keys to correctly reading Forex charts that will help you avoid the common mistakes that many early Forex traders will have when looking at the chart, which will increase your progress when you look at the Forex charts and trading systems you would like Selectable!
Now that you are aware of this, train blindly on the graphic graphics charts as you put these five points in your mind.
Now you can go!
Indicator of Forex Market Economy
All investors in the Forex market usually base their business decisions on economic and political news from all over the world. Forex markets and stocks depend on the economic situation of the countries of the world. The use of the index of industrial production is the best way to predict future market trends. All traders use this market indicator, especially those who prefer to trade in the long term because the improvement of a country’s economy will definitely mean the direction of the currency to the upside, and vice versa, the economic decline in this country will automatically mean the fall of the price of currency.
What is the indicator?
Forex indicators are the fundamental and fundamental tools used to determine the direction of the Forex market and to anticipate future trends. These tools are sometimes very important for users who benefit from them in anticipating the future ups and downs of the Forex market, which consequently can handle their financial position in the Forex market. There are a variety of forex indicators available for use during foreign exchange, which are inherently sophisticated and enriching from the ArbiCash trading platform used by Forex traders to deal efficiently with market challenges. These indicators are not only useful to the novice Forex trader but extend to experienced forex traders. The two most important indicators in this set of indicators are as follows.
Moving averages (muffing lines: median – exponential – and weighted)
Most forex traders use muffin signals to calculate trends in currency markets. This procedure can be developed and interpreted with ease. Using this indicator, you can measure average price movements over a given period of time. With this indicator, price data becomes smoother and more understandable, making it easier to observe market trends.
Stochastic is another powerful tool that is used as a forex indicator by market experts to assess market trends. The main idea behind this indicator is that the high price usually moves near its peak
The previous low price moves in turn near its previous bottoms.