Forex chart

How can I read a Forex chart and make an order?

Understanding charts are one of the most crucial practical areas for the trader to assess BUY/SELL decisions in terms of trend direction, trading volumes and the signals that emanate from the Candlesticks.

One can find this useful App to learn how Japanese Candlesticks form patterns that allow you to recognize trend changes, called Japanese Candlestick Patterns.

A single chart can reveal some of the required data but for a true analysis, one must look at at least 2–4 of the charts and form your opinion based on those. By that, I mean Daily, H4, H1, and M15. If you can see that all 4 show the same trend then affirms your decision for trading. As a new trader, the recommended timeframe to trade on is the Daily chart, therefore, one would also look at the Weekly. The keys to making an informed analysis are down to viewing the charts and confirming the trend while taking on board any major announcements that will throw a spanner in the works. Setting up MT4 allows you to see as many timeframes as you require to make visual/analytical decisions to back up your view of the Market.

Useful Books on Technical/Fundamental Analysis

Enjoy your trading journey.

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