Trade Share CFDs for your favourite companies and 50+ U.S. stocks. Click here.
Refer a friend
Title Icon


Have a basic understanding of Forex, but not sure how to
level up? We have got you covered.

How to Read Trading Charts

Trading forex live charts can help identify ongoing market trends, which can help you place successful traders. With the historical and current price movements of currency pairs on trading charts, it becomes possible to understand the underlying trends followed by different currency pairs. All of this, in turn, makes forecasting forex trades easier and more predictable. In this article, we take a look at how you can read trading charts for increased profits.

What is a forex chart?

A forex chart is a pricing chart that shows the historical and current price movement of a currency pair. Fx charts also identify technical patterns and indicators for analysing future market trends and price signals.

What is a price chart?

A price chart is a sequence of different prices of a currency pair, plotted in a specific timeframe. It consists of two axes: the y or vertical axis indicates the prices, and the x or horizontal axis that indicates the time frame. There are four components in a price chart –


Opening price

The opening price of a currency pair is the price at the start of the period. Different types of forex trading charts represent opening prices differently.

Closing price

The closing price of a currency pair is the last price at which the pair was traded on a trading day. Like the opening price, the closing price is also represented in different ways in different forex market chart patterns.

High price

The high price of a currency pair is the highest price at which it has traded on that trading day.

Low price

The low price of a currency pair is the highest price at which it has traded on that trading day.

What are the benefits of using forex charts?

  • Helps in identifying the ideal entry and exit price levels as well as different chart patterns.
  • Give a clear idea about the potential future price movement of currency pairs over multiple timeframes.
  • Powerful technical analysis and fundamental analysis.

How to trade different forex trading charts

Line chart

Line charts are one of the most basic charts in the forex market. The closing prices of the currency pairs on different trading days are plotted together and joined to form a line that indicates the market’s trend direction. When the line trends upwards, it indicates an uptrend. When it trends downwards, it indicates a downtrend. Since the lines are joined only on the basis of the closing prices of the currency pairs, it does not give out any further information about the market’s price movements.


Bar chart

Bar charts depict the closing, opening, high and low price points for the specific time period in which the currency pair has traded. The high and low-price levels are depicted as an upper vertical and lower vertical line, whereas the smaller horizontal line towards the left shows the opening price level. The closing price is represented by a small horizontal line towards the right. These live forex charts allow traders to identify gaps in the exchange rate over a period of time. It also helps identify breakout levels and supports traders in placing successful long or short orders. Bar charts are a good indicator of long term trends in the market.


Candlestick charts

Candlestick charts are one of the best forex charts as they indicate high and low trading ranges during a specific time period. Every candlestick in the chart shows the currency pair's price movement over a specific time period. The high price in the chart pattern is represented by the topmost point of the upper wick, whereas the low price is represented by the lowermost point of the lower pick. The open and close prices are the upper horizontal and lower horizontal lines of the candlestick’s body, respectively. Candlestick charts are a powerful tool to identify the market direction.

  • If there are several green-coloured candlesticks, it indicates a bullish trend and signals to long the trades.
  • If there are several red-coloured candlesticks, it indicates a bearish trend and signals to short the trades.

Doji charts

A Doji chart is a reversal signal and provides traders with ideal levels to enter or exit a trade as the current trend comes to an end. Doji charts can indicate an equal closing and opening price of the currency pair in the market. If the opening and closing prices are equal or close to each other, it creates a cross-like structure called Doji, indicating indecisiveness between the bulls and bears in the market. Since indecisiveness occurs at the top or bottom of a trend, it indicates a market reversal right after.

  • When a Doji forex currency chart is formed during an uptrend, it provides a bearish reversal signal to the traders where they can short the trades.
  • When a Doji chart is formed during a downtrend, it provides a bullish reversal signal to the traders where they can long the trades.

Mountain charts

A mountain chart is like a line chart, with the only difference being the area below the price line is always shaded, giving it the appearance of mountains. The mountain charts can identify long-term trends based on which they can place buy or sell orders. However, like line charts, mountain charts do not provide any information about the opening, high and low prices of the currency pair as they are formed by joining the closing prices only.


HLOC charts

‘High, Low, Open and Close’ or HLOC charts indicate prices for a particular currency pair in a specific time period. It provides traders with a price range between which the currency pair is trading and their current trading behaviour.

  • The high price in this currency chart is the top point of the vertical line.
  • The low price in this chart is the lowermost point of the vertical line.
  • The opening price in this chart is indicated by a notch towards the left side of the vertical line.
  • The closing price in this chart is indicated by a notch towards the right side of the vertical line.

The HLOC line is green when currency pairs are trading in an uptrend, closing at higher prices than they opened. The HLOC line is red when currency pairs are trading in a downtrend, closing at lower prices than they originally opened at.


Intraday trading charts

Intraday trading charts indicate the price movements of a currency pair within the same trading day. Some of the most commonly used intraday trading charts are –

Intraday minute charts Intraday minute charts can identify the price movement of a currency pair based on a few minutes. Such real time forex charts are helpful for short-term traders like scalpers as the charts provide them with price movement information of every changing minute. There are several minute charts that traders can analyse to enter or exit the market accordingly.

  • The 2-minute charts represent the price action of a currency pair at an interval of 2-minutes. Scalpers use 2-minute charts the most.
  • The 5-minute charts represent the price action of currency pairs that close, open, and make high or low price levels at an interval of 5-minutes for the specified time period. Day traders use 5 minute charts the most.
  • The 15-minute charts represent a currency pair’s price action at an interval of 15-minutes each on the specified timeframe. These charts are mostly used by day or swing traders.

Intraday hourly charts Intraday hourly charts can identify the hourly price movement of a currency pair over a period of a single or a few trading days. Such charts include detailed information about the currency pair’s price and trend direction. It is most commonly used by swing or medium-term traders who hold trades from a few days to several weeks.


Intraday tick charts Intraday tick charts are a type of line chart that represents every single trade occurring in the market for a particular currency pair. Each point in the chart represents an actual market trade. When the market is not liquid, the tick chart is only a flat line. But when the market is liquid and currency pairs are traded in huge volumes, the tick chart has several upward and downward movements. Since tick charts indicate every single trade in the market, it is a highly useful chart for scalpers as it helps them monitor every single second or minute of the trading market.

  • When the tick chart is sloping upwards, it indicates a bullish trend and signals traders to place long orders.
  • When the tick chart is sloping downwards, it indicates a bearish trend and signals traders to place short orders.

Point and figure charts

Point and figure charts in forex consist of a column X that shows increasing prices and a column O indicating falling prices. These prices are arranged in a square grid and show the accurate price action of the currency pair in a particular time period. It helps traders understand the market’s price movement and the current trend to place successful market orders.

  • When a new price movement is added in the X column, it indicates an uptrend continuation and provides traders with ideal price levels to long the trade.
  • When a new price movement is added in the O column, it indicates a downtrend continuation and provides traders with ideal price levels to short the trade.

How do chart timeframes work?

Chart timeframes work on the basis of the specific period of time in which the trader wants to analyse the currency pair’s price movement in the market. One-minute charts show price movement during one-minute intervals, hourly charts show price movement during one-hour intervals, and daily chart timeframes indicate price movements during one-day intervals. Different timeframes provide traders with currency pair’s price information in different time periods that help them place successful trade orders in the short, medium or long run.

What are the main forex timeframes for charts?

Traders can trade forex based on several timeframes. The most commonly used charts are the ones that are traded in daily, hourly and minute-based timeframes.

Daily/long-term time frames

Daily or long-term timeframes are used by position traders who hold trades for over several months. These timeframes provide a currency pair’s price information on a daily basis, based on which traders can enter or exit the market in the long run.

Hourly/medium-term time frame

Hourly or medium-term timeframes are used by swing traders who hold trades for over several weeks. These timeframes provide a currency pair’s price information on an hourly basis, based on which traders can enter or exit the market in the medium term.

Minute/short-term time frame

Day traders and scalpers who hold trades only for a few seconds or minutes use minute or short-term time frames. They place several trades in a specific timeframe as these timeframes provide them with a currency pair’s price movement on a per-minute basis.

Analyse forex price charts today to place successful orders

Reading forex charts and using technical analysis by identifying patterns in the price charts help traders place successful market orders. Blueberry Markets is a forex trading platform that offers seamless trading experience with competitive spreads and powerful trade execution. Sign up for a live trading account or try a risk-free demo account.

Recommended Topics

  • How to Trade Bullish and Bearish Divergences

    Bullish and bearish divergences enable you to trade market reversals.

  • Top Support and Resistance Indicators

    Support and Resistance indicators identify price points on the forex chart where the markets can potentially reverse.

  • What is The Donchian Channel Indicator

    The Donchian Channel indicator can determine volatility and potential breakout signals in the market.

  • How to Install MT4: A Beginner's Guide

    MetaTrader 4 (MT4) is a powerful forex trading platform with a user-friendly interface and advanced analytical tools for automating trading.

  • What are Trendlines in Forex Trading?

    Trendlines in forex provide clear market signals for placing long or short orders.

  • Market Order vs Limit Order

    Market and Limit orders help execute automatic trading transactions, as per your trading preferences.

  • Bearish and Bullish Markets

    In the trading world, it is essential to be aware of the bull and bear market trends because they define the direction of the market

  • How to Read Trading Charts

    Trading forex live charts can help identify ongoing market trends, which can help you place successful traders.

  • Top Reversal Patterns For Forex Trading

    Reversal patterns provide traders with price levels at which the market can potentially reverse.

  • How to Find The Best Forex Trading Signals

    Forex trading signals are important market triggers that provide traders with ideal entry and exit price levels in the market.

  • Top Forex Trading Strategies That Actually Work

    Trading in forex, you will come across several forex trading strategies -- some more complex than the others. It is immensely crucial to start forex trading with the right strategy.

  • Scalping vs Swing Trading: What’s the Difference?

    Every forex trader has a different purpose, objective, time constraints, and investment capital. The right forex trading style for you depends on your main trading goals and requirements.

  • What are Volume Indicators

    Volume in the forex market can be used to determine the upcoming market trends. Volume indicators are forex trading indicators that can identify if the volume for a particular currency pair is high or low, providing traders with market continuation and reversal signals

  • Shooting Star Candlestick Pattern

    The Shooting Star Candlestick Pattern can identify bearish market reversals and provide traders with ideal price levels to short or exit the trade.

  • Top Trading Chart Patterns

    Predicting future currency pair prices help in confirming market continuation and reversal signals.

  • What is Slippage in Forex Trading?

    Slippages occur when a currency pair order is executed at a price different from the set market order price.

  • Buy limit vs Sell Stop Orders in Forex

    Placing buy limit and sell stop orders help employ a price control strategy on forex trades. Let's take a look at buy limit vs sell stop orders.

  • The Best Time Frame For Forex Trading

    A time frame is a designated time period where forex trading takes place. Time frames can be measured in minutes, hours, days, weeks, months and years.

  • Top Technical Indicators in Forex

    Technical indicators are a market direction signal based on the current and historical price movement of a currency pair that provides traders with future price expectations

  • Top Continuation Patterns

    A continuation pattern indicates if the current market trend is going to continue in the same direction or not

  • How to Ace Divergence Trading in Forex

    The forex market is all about timing your trades well. Divergences give traders a market reversal signal right before a price trend changes

  • How To Trade Forex With Japanese Candlesticks?

    A Japanese Candlestick is a technical analysis tool used to analyze the currency pair’s price movement in the forex market.

  • Top Momentum Indicators To Analyse Trend Strength

    Momentum indicators are technical analysis tools that determine in which direction the market is headed and how strong or weak the ongoing trend is

  • Types of Moving Averages Every Trader Should Know

    Moving Average is a technical indicator which averages out currency pair prices in a specific time period in order to accurately identify market trend reversals and support-resistance levels.

  • 8 Popular Intraday Trading Indicators

    Intraday Trading Indicators help place successful short-term trade orders in the forex market.

  • What is the Tweezer Candlestick Formation?

    The Tweezer Candlestick formation is a reversal pattern that indicates either a market top (strong uptrend) or market bottom (strong downtrend)

  • Average Directional Index

    The ADX is a strength indicator that measures how strong or weak a particular market trend is.

  • How to Use Elliott Wave Theory For Forex Trading?

    The Elliott Wave Theory analyses a currency pair’s long-term price movement in the forex market.

  • What are Pivot Points in Forex

    Pivot Points help traders identify market reversals. With Pivot Points, traders can predict the support and resistance levels of a currency pair to make entry and exit decisions.

  • Keltner Channel

    Keltner Channel is a technical indicator that provides traders with strong continuation signals and trend directions by assessing a currency pair's price volatility.

  • Leading vs Lagging Indicators

    Leading and lagging indicators help traders measure the future and current performance of a currency pair, respectively. These indicators can help make successful trading decisions.

  • What is Relative Strength Index?

    Relative Strength Index (RSI) helps traders understand how frequently the currency pair prices change in the forex market to predict the future market prices.

  • Wide Ranging Bars

    Wide Ranging Bars are strong momentum indicators that help traders understand the market direction and identify ideal entry and exit points.

  • Harmonic Price Patterns in Forex

    Harmonic Price Patterns allow traders to predict future price movements and trend reversals to make ideal entry and exit decisions in the Forex market.

  • Double tops and bottoms

    Double Tops and Double Bottoms chart patterns help traders identify solid bullish and bearish trend reversals in the Forex market, and in turn, find the ideal market entry and exit points.

  • Falling and Rising Wedges

    When you are trading currency pairs in the Forex market, it is essential to know when the market can possibly reverse. The Falling and Rising Wedges pattern help identify market reversal signals and accurate market entry and exit points.

  • Forex Scalping Strategy

    Scalping refers to trading currency pairs in the Forex market based on real-time analysis. With Forex scalping, you hold a position for a very short period and close once you see a profit opportunity.

  • Symmetrical Triangle Pattern

    Symmetrical Triangle Patterns help identify market breakdowns (price fall) and breakouts (price rise), and in turn, help you plot the entry and exit prices for profitable Forex trading.

  • Introduction to Technical Analysis in Forex

    Technical analysis in Forex trading provides you with significant market trends, reversals and fluctuations and in turn helps you long and short term trades.

  • Trading breakouts and fakeouts

    Breakout and fakeout trading enable traders to take positions in rising and falling markets.

  • Fundamental Analysis in Forex Trading Explained

    Fundamental analysis in Forex trading is one of the several methods you can use to determine the relative security and intrinsic value of a nation’s currency.

  • 8 Top Commodity Trading Strategies

    Commodity trading is one of the best ways to diversify your portfolio and protect yourself from losses incurred due to inflation.

  • What is a Doji Candlestick?

    The Doji Candlestick is a pattern used in technical analyses of trend reversals in a market.

  • Moving Average: The Complete Guide

    Moving Average is used in Forex trading to compare the current currency pair pricing and where it stands with respect to the current average pair prices.

  • What is Volatility Index (VIX) and How Do You Trade It?

    One of the most popular trading markets in the world, the foreign exchange market allows investors to make quick money by trading currencies.

  • Forex Profit Calculator

    On average, a Forex trader can make anywhere between 5 to 15% of the initial amount they invested in the market.

  • Understanding markets gaps and slippage

    The foreign exchange rate reveals valuable details about particular currencies a trader wishes to trade-in.

  • What is a pip in forex?

    When trading in the Forex market, you need to have a close eye on two currencies at the same time. PIP helps you denote the change in a currency pair’s value.

  • Introduction to order types

    Order types in Forex trading determine and control how you enter and exit the market.

  • Using orders to manage risk

    Forex risk management includes a robust set of rules and regulations that protect you against Forex's negative impacts.

  • Managing risk in 7 steps

    Risk management in Forex is essential to individuals, groups of individuals, and organizations since it enables them to implement measures that help mitigate Forex risk and its negative impact.

  • Bullish and Bearish Flag Patterns

    Blueberry Markets discusses why it is essential to study the bullish and bearish flag patterns in Forex. Learn more.

Learn Icon


Master risk management and
become an expert forex trader.
Move on to the advanced course.

Guide to Forex
Trading indicators.

Enter your details to get a copy of our
free eBook

Thank you, please check your inbox for your ebook.

Ads BG

Start a risk free
demo account

News & Analysis

Catch up on what you might
have missed in the market.

Runner graphic

Ready to trade at
Blueberry Markets?

Your best trading experience
is a click away