How do you read a forex chart?

[Fin_Trader]

I prefer naked price action, i.e. trading using intuition. But intuition comes after you watched charts thousand times and feel how certain pattern can play out in this situation.

I would call it trading intuition. Because it is impossible to trade successfully using intuition and without knowledge. Only experience can tell you how to predict price movement.

 

[Latham]

To read a forex trading chart, identify the time frame (e.g., daily, hourly), and analyze price movements. Look for trends, support and resistance levels, and candlestick patterns. Use indicators like moving averages or RSI to gauge momentum and market strength. Always consider news events that may impact prices.

 

[LeoFx]

Reading a forex chart involves analyzing price movements over time, using candlestick patterns to identify trends and reversals. Key elements include support and resistance levels, trend lines, and technical indicators like moving averages. Understanding these components helps traders make informed decisions based on market behavior and potential future movements.

 

[Polakandil]

In platforms such as MetaTrader 4 and 5, the most widely used chart type is the candlestick chart, because it is easier to read, even though the concept is similar to a bar chart, to differentiate between bull and bear charts, it is easier to use a candlestick chart.

 

[TradeWizards]

Forex chart reading does not only involve analyzing price movements, it is very important to use harmonic patterns and indicators to identify trends and reversals. Understanding these components helps traders choose the right strategy and make informed decisions for possible future moves.

 

[borzy]

In platforms such as MetaTrader 4 and 5, the most widely used chart type is the candlestick chart, because it is easier to read, even though the concept is similar to a bar chart, to differentiate between bull and bear charts, it is easier to use a candlestick chart.

They are both good but MT5 is much better, charting capabilities as well as coding tool are major breakthrough compared with MT4

 

[Polakandil]

They are both good but MT5 is much better, charting capabilities as well as coding tool are major breakthrough compared with MT4

Maybe one day MT4 will be outdated and no longer used, many brokers including FXOpen now offer MT5 as an advanced platform developed by Metaquotes. Previously, this company had developed Metatrader 3, but the most popular is Metatrader 4.

 

[borzy]

Maybe one day MT4 will be outdated and no longer used, many brokers including FXOpen now offer MT5 as an advanced platform developed by Metaquotes. Previously, this company had developed Metatrader 3, but the most popular is Metatrader 4.

Yeah I agree MT4 looks obsolete however it is pretty efficient and it is known that for professional traders priority is stability, speed and functionality of platform, not its design

 

[Imogen Beaumont]

I only check the trend, the support and the resistance, use the RSI for a better understanding of the asset's positions, and then make my trade.

 

[borzy]

I only check the trend, the support and the resistance, use the RSI for a better understanding of the asset's positions, and then make my trade.

I'm also proponent of simple setup with minimal rules and parameters because complicated strategies often do not work as expected.

 

[Fin_Trader]

Yeah I agree MT4 looks obsolete however it is pretty efficient and it is known that for professional traders priority is stability, speed and functionality of platform, not its design

I also mainly use MT4, but sometimes when I want to see new instruments I use the tradingview platform, in Fxopen there is an opportunity to open an account and connect to this platform. The functionality of tradingview is interesting.

 

[borzy]

I also mainly use MT4, but sometimes when I want to see new instruments I use the tradingview platform, in Fxopen there is an opportunity to open an account and connect to this platform. The functionality of tradingview is interesting.

Yeah tradingview is great I'm also looking for a way to connect my HFM account to tradingview to get most of the features available

 

[Imogen Beaumont]

I'm also proponent of simple setup with minimal rules and parameters because complicated strategies often do not work as expected.

Yes, that's what I've been saying everywhere, if you overcomplicate it it will not work and you won't even know why it didn't work because of all the avenues that you will have to check.

 

[Polakandil]

Tradingview is indeed a great platform, FXOpen also can connect to the Tradingview platform, however, I still use MT4 for daily trading, despite sometimes checking some ideas on Tradingview.

 

[borzy]

Tradingview is indeed a great platform, FXOpen also can connect to the Tradingview platform, however, I still use MT4 for daily trading, despite sometimes checking some ideas on Tradingview.

Can you help me to connect my HFM account to Tradingview, I see that you managed to connect your broker, however I'm struggle to do that

 

[VasilTodorov]

Forex charts are an essential tool for traders to make informed decisions and execute profitable trades. Reading forex charts might seem overwhelming to novice traders, but it becomes easier with practice and familiarity with the various charting tools and techniques.View attachment 6505​

Forex charts represent the price movements of currency pairs over a specified period. The most commonly used type of chart in forex trading is the candlestick chart, which provides traders with detailed information about price movements.

Here is a step-by-step guide on how to read a forex chart:

• Currency Pair: The first step is to identify the currency pair you want to analyze. The currency pair is shown at the top of the chart, with the base currency on the left and the quote currency on the right.
  
  
• Timeframe: The next step is to choose a timeframe. Forex charts can be displayed in different timeframes, such as 1 minute, 5 minutes, 15 minutes, 1 hour, 4 hours, daily, weekly, and monthly.
  
  
• Candlesticks: The candlesticks on a forex chart represent the price movements of the currency pair over the chosen timeframe. Each candlestick consists of a body and two wicks. The body represents the opening and closing price of the currency pair, while the wicks represent the high and low prices.
  
  
• Colors: The color of the candlestick can indicate whether the price has gone up or down during the timeframe. A green or white candlestick indicates that the closing price was higher than the opening price, while a red or black candlestick indicates that the closing price was lower than the opening price.
  
  
• Support and Resistance Levels: Support and resistance levels are key levels on the chart where the price tends to stall or reverse. Support levels are below the current price, and resistance levels are above the current price. Traders use support and resistance levels to identify potential entry and exit points.
  
  
• Indicators: Forex charts can also include technical indicators, such as moving averages, Bollinger Bands, and Relative Strength Index (RSI). These indicators help traders to identify trends, momentum, and potential buy and sell signals.
  
  
• Volume: Volume is an important indicator that shows the level of market activity. High volume indicates that there is significant interest in the currency pair, while low volume indicates the opposite.

Reading forex charts is not only about identifying the price movements of a currency pair but also about understanding the context and market conditions that are affecting the price movements. It requires practice, experience, and knowledge of technical analysis and fundamental analysis.

Forex charts are essential tools for traders to make informed decisions and execute profitable trades. By understanding the basics of how to read a forex chart, traders can gain valuable insights into market trends, support and resistance levels, technical indicators, and volume.

well thanks for the information but reading a chart is way more than this

 

[Polakandil]

Traders can explore how reading forex charts from different time frame viewpoints will provide price history information and possible different patterns.

 

[brooksjanet24]

In forex trading there are hundreds or thousands of trading systems, we choose a trading system that is comfortable to use with its advantages and disadvantages. Naked trading without indicators is probably the simplest trading system with the candlesticks themselves as the base indicator.

I agree. When I started out, I began with naked trading too.