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Choosing the Right Forex Charts

This article looks at finding the right forex charts to use with your trading.

Choosing the Right Forex Charts

When you look at using forex charts with your trading you need to be able to choose the right forex charts.  If you do not have the right charts there are a number of problems that you could face on the market.  It is important that you know about the different types of charts and what they offer you.  You should also consider the timeframe of the charts that you are using.  A lot of traders find the chart type that they should use and do not consider the impact of the timeframe on the price movements and the indicators that they are using.

The Different Forex Charts You Can Get

There are a number of different forex charts that you can use when you are trading.  The most commonly used are the candlestick and the bar charts.  This is due to the amount of information that you are able to get from the charts.  These two charts will offer you information on the opening and closing prices of the movement as well as the highs and lows that came during the time period.

There are many traders who look at using line charts when they trade.  This is due to the line chart being one of the most commonly known charts.  The problem with a line chart is that the information you get is very simple and you cannot get as much detail as with the other chart types.  The best use for a line chart is to see the overall movement of the forex market over a prolonged period of time.

The Use of Indicators

Indicators can be used on both the bar and candlestick charts.  This means that you are able to get the same information with both of these charts.  When you use the indicators you have to consider what they are looking for and how this impacts your trading.  There are a lot of indicators that you can use, but you may not actually need them.

The Timeframes of the Charts

The timeframe of the charts that you use should be complementary with the timeframe of the strategy that you are using.  When you use a long-term trading strategy you should look at the use of long-term forex charts.  There are many traders who will look at the use of different chart timeframes for different aspects of their trading.

These traders will generally use the longer timeframe charts to determine the movement of the market and how they are going to trade.  All the information they get from these charts will be related to what and how they trade.  They will then use the shorter timeframe charts to pinpoint the entry and exit points that you are going to be using on the market.

The timeframe of the charts will also affect the indicators that you are going to be using.  The indicators that you use need to be set to the parameters of the timeframe that you are going to be using.  This means that if you are using long-term charts then you should have the indicator parameters set to long-term.

 

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