Forex Price Charts, what does it mean and how do you use?

Numerous important data such as discipline, trading rules, not being greedy, etc. But one of the most important things is:

Learn to read the letters as letters represent the soul of the market.

I admit that reading the letters, and the interpretation of the patterns are more an art than a skill. Base and implement decisions in and out of their own methods combined technical and fundamental analysis.

Forex charts are easier to interpret and use. They reflect a slower economy and stable movement of a country, compared to the stock market, with its daily drama of company reports, Wall Street analysts and shareholder demands.

Unlike stocks, currency charts do not spend much time in trading ranges and have the tendency to develop a strong trend. Moreover, the currency with its 4 Mayor currencies is easier to analyze than tens of thousands of people.

(Mayor currencies are: USD / JPY, EUR / USD, GBP / USD and USD / CHF)

Understanding just a few points on the technical analysis of currency board can lead to increased profit potential.

Prices - The price reflects the perceptions and actions of market participants. Is the deal between buyers and sellers in the Over The Counter (OTC) or 'interbank' market generates price movement. Therefore, all fundamental factors are quickly discounted prices. By studying the price lists, you are indirectly looking at the fundamental and market psychology all at once, after all, the market is fed by two emotions - greed and fear - and once we understand that, then begin to understand the psychology of the market and how it relates to the chart patterns.

Data Window Chart - FCM and most online charting stations, when you click on a bar or candlestick price, you will see a small box of data usually called a display window containing the following elements:

H = Highest Price
L = Low Price
O = Opening Price
C = Close Price (or the last price)

The most common types of price bars, used in the forex market are bar chart and the candlestick chart:

Bars Charts -

Price bars are a linear representation (a line) for a period of time. This allows the viewer to see a graphical representation summarizing the activity of a specific time frame. As an example, I use 10 minutes, 60 minutes and the daily time interval for my systems. Each bar has similar characteristics and tells the viewer several important pieces of information.

First, the highest point of the bar represents the highest price achieved during that period of time. The lowest point of the bar represents the lowest price during the same period. Regular bars display a small dot on the left side of the bar represents the opening price of the period and the little dot on the right side represents the closing price of the period.

Candlesticks - Japanese Candles, or simply as they are now known, are used to represent the same information as the price bars. The only difference is that the difference between how to open and close the body of a table is displayed with a color inside. Red means that the closure was lower in the open, and the blue color represents that the close was higher than outdoors.

If the box has a line from the box representing the high and is called the wick. If the box has a line down the box, which represents the floor and is called the tail.

Many interpretations can be made of these "candles" and many books have been written about the art of interpreting these bars.

Marcos table intervals and Time:

A graphic timeline or deadline and period of time, basically refers to the length of time between the opening and closing of a bar or candlestick.

For example, agent software, which will be able to see a currency pair at a time of 1 hour over a period of 2 days, a period of 5 days, 10 days, 20 days and 30 - days period.

Most of the time intervals in the short term (5 minutes and 1 min charts) are used for input and output ranges longer time period (Figures 1 hour and day) are used to see where the trend general.