Add your review Cancel reply Your email address will not be published. Analysis in the chart Good luck guys! There are many ways of depicting the price action on a forex trading chart.
We also analyze the pair and tell you about the characteristics and how to trade it. Forex trading involves the sale of a currency, and the simultaneous purchase of another with the purpose of closing the position at a later time with a profit.
The forex market is the most liquid and active market in the world. At every single second an enormous amount of transactions gets executed, with the total daily turnover being regularly estimated to reach trillions of dollars.
If we did not make use of an analytical tool such as a forex chart to place the data into a more compact form where it can be visually examined and analyzed, we would be in possession of a vast sea of difficult to interpret numbers. The forex trading chart, then, is a visual aid that makes the recognition of trends, and patterns in general easier, and makes the application of technical tools of analysis at all possible. Charts are categorized according to the way price action is depicted as well as the time frame of the period being examined.
This means that each candlestick on the graph presents the price data of a four-hour long period in a compact form. What happens inside that time period is irrelevant. If we had chosen an hourly chart, each candlestick on the chart above would be replaced by four different candlesticks.
There are many ways of depicting the price action on a forex trading chart. Bar charts, candlestick charts, line forex trading charts are a few of the many options available, with each offering its own advantages in some aspect of analysis and utility. But they all do the same thing: On the other hand, there are some forex charts that take weighted average of such currency pairs to derive an overall index for a currency.
The famous USD index, is a good example. Charts are the keys that allow us to unlock the secrets of forex trading. This can be a bit confusing to a beginner and which is why, it is important to customize the chart area so that you feel comfortable and are not distracted by other instruments.
Once you delete these chart windows, you will see an empty space now. Once a new chart is opened, which in our case is the EURUSD chart; you can then customize it according to your preferences, which is covered in the next section.
The charts in MT4 offer a great level of customization which includes changing colors to adding studies as well switching between different time frames. In this window, you will see two tabs; Colors and Common. The Colors tab is used for changing the chart colors. You can select from any of the default colors or select a color scheme which offers three basic types of chart color scheme. In this tab, you can choose between Bar chart, Candlesticks or Line chart. There are two ways to customize the timeframes.
The first method is quite simple, where you just click on any of the time frames that you see in the tool bar, just above the chart. From 1-minute charts to monthly charts.
When you select an indicator, you will see a pop up window asking you to enter the indicator settings, which are usually set to a pre-set default settings. MT4 Chart Drawing Tools: To use the chart drawing tools, you can access them either via the default drawing tools in the toolbar or by clicking on Insert and selecting lines to draw trend lines, vertical and horizontal lines, etc for example. Now that you added all your custom indicators, it would be a pity if you had to do this all over again, every time you started your MT4.
To avoid this, you can save your customizations. As you can see, the above tutorial for customizing MT4 charts is very simple and easy. It is flexible enough to allow you to customize charts for any instrument and also to save the customizations so you can use it for quick reference for the future. Double click on the shaded area shown on your MT4, to minimize the terminal screen and maximize the chart area.
Quick navigation between charts: Access any open chart that you have by just clicking on the chart name. Improve Your Trading Skills - Don't miss our new posts!
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