How To Read Forex Charts
Want to know how to read forex charts?
It’s easier than you think once you understand the 5 things you must know about forex charts. This article provides all the tricks and tips you need to do this properly.
Learning the basic skills in forex, such as how to read forex charts is really important.
This is because once you have this vital skill under your belt, it will be a lot easier and quicker when the time comes for you to learn and practice an actual forex trading system.
By the time you finish this article, you’ll learn how to read forex charts, as well as know the pitfalls that can occur when reading them, especially if you haven’t traded forex before.
Firstly, let’s revise the basics of a forex trading as this relates directly to how to read forex charts.
Each currency pair is always quoted in the same way. For example, the EURUSD currency pair is always as EURUSD, with the EUR being the base currency, and the USD being the terms currency, not the other way round with the USD first. Therefore if the chart of the EURUSD shows that the current price is fluctuating around 1.2155, this means that 1 EURO will buy around 1.2155 US dollars.
And your trade size (face value) is the amount of base currency that you’re trading. In this example, if you want to buy 100 000 EURUSD, you’re buying 100 000 EUROs.
