Forex Charts For Beginners

Need help becoming profitable? Watch this interview, where Jarratt reveals THE EDGE, which got him #2 ranking: http://www.jarrattdavis.com/forex-course Welcome to this very short presentation giving you a very basic understanding of Forex charts. After watching this video you will get a good feel for how the market moves and most particularly how professional Forex traders used those price charts. The first thing we are going to look at are two key elements. On the right hand side you'll notice the number and you can see that it is moving up and down. Currently it says 1.1298. That is the price of this currency pair. That's the first bit of information that the Forex charts give you. It tells you where the pair is currently trading at and how much that pair costs to buy or sell. The other thing that the Forex charts tell you is where the prices been in the recent past. You can see here in this example that this currency pair has came all the way up to 1.1380 and then seller came into the market and pushed all the way back down to its lows. Now that's useful information because we know that for whatever reason sellers are trading from 1.1380. So if pair gets back up to 1.1380, you guessed it, we can expect some more sellers to come back into the market because that's recently been attractive to those sellers. It's also been a level that buyer's just can't get through. So the first value of the Forex charts is showing us the history of the price so we can make little decisions and judgments based on that current trade. Now the other thing that a price chart does, is displaying prices in a different ways. For example, you got a bar chart here. We've also considered a line chart. Yet the most popular way to display prices is the candlestick chart. The candlestick chart is the most popular form of chart analysis with professional traders simply because it gives you much more information. You can see not only where the prices been but where the major rejections came from. These little wicks here show that the market sold off very quickly and this is a particularly fierce reaction zone. If we go to a bar chart, for instance, or a line chart most obviously you don't get that same clarity. You just see where the prices been without those little details. That's why candlesticks tend to be most popular. One thing I want to mention here is that Forex charts definitely get overused by retail traders. You do not trade the markets or professionals don't trade the market's by simply staring at a price chart and waiting for it to give a signal of which way to trade the currency on the different pairs. A mistake that retail traders make is they line up all the currency pairs, they put their indicators on each one and they just wait to see which pair gives them a signal next. That is the worst way you can trade and if you do trade like that you stand a very high chance of losing money. The way you get your analysis is by studying the fundamentals and the sentiment so you can highlight which particular currency pair you wanna trade, which direction you wanna trade it in and then use the Forex charts for an extra layer of analysis. I hope that's helped. That's was an introduction to the Forex charts. The two values are, of course, the price and history of what the pair has been doing. So you can make those decisions but you need to make it based on your existing fundamental and sentiment analysis in the first place. ------------------------------------------------------------------------------------------------------------------------------------------------------------------------ Join my Free Video Course and Learn Forex Success: http://www.jarrattdavis.com/go/free-f...

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