Charting is an essential tool for technical analysis. With the price volatility of currency pairs, knowing and following trends will help you decide your course of action on time. Live forex charts serve as real-time graphs of currency pair prices, along with a vast range of useful technical indicators.
What are the features of a live forex chart?
Charting is studying the relative value of a security by rendering a visual picture of its price action. Forex charts help you identify trends and critical price points of potential entry and exit in the market.
A live forex chart is typically web-based, so you likely won’t need to install one. Because it’s web-based, it reflects real-time updates in the forex market. Among its features is a period that you can change to suit the timeline of data analysis, past data that you can utilize, and various indicators that you can explore. Live price charts are customizable, which allows you to study a currency’s price action in advance.
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Here are four items you usually see in live forex charts:
- Chart Styles: You can select a format that works for you, such as Heikin Ashi, area, line, Renko, candlestick, and bar price charts.
- Customizable Time Period: You can fully customize the time frame, like using intraday intervals, daily or weekly periods.
- Instrument Comparison: You can compare the performance of different instruments or indices via price overlays.
- Indicators: Linear regression, ADX, and CCI are a few indicators that are available for you. Live forex charts have a suite of indicators for your immediate use.
What are the instruments supported by live forex charts?
A live forex chart usually carries financial instruments that are available in major global markets or exchanges. Its list of supported instruments usually includes cryptocurrencies and related products, international indices, forex, futures, stocks, and contracts for differences or CFDs.
How does a live chart work?
If you are following the trends of your favorite currency pairs, you’re better off with live forex charts. They can be useful when finding a trend so you can trade forex or when looking for the perfect time to purchase travel money or send money abroad.
The three most common chart types are the line, bar, and candlestick charts.
If you’re fond of basic or straightforward graphs, a line chart can serve you best. It has the most straightforward price representation and is done by marking different price points on a diagram and then connecting neighboring points by drawing a continuous line. Line charts depict only the closing prices.
Bar charts are more complicated since they can offer more prices in one setting. For instance, a bar chart can show the four different currency pair prices–opening, highest, lowest, and closing prices in a trading day.
The candlestick chart is the most popular chart type for visualizing currency price fluctuations. You usually see a series of red and green bars in this chart, which are called candlesticks. An appreciating currency pair is green in an ordinary trading day to indicate the rise in value. A red candlestick indicates a loss, as when a currency pair closes lower than its opening rate on the live forex charts.
Reading live charts
You will see a time period along the horizontal axis and the price along the vertical chart axis. If you scroll going to the left side, you will see historical pricing. The current pricing is on the right-hand side. You can switch to a different currency pair anytime by changing the currency pair in the designated section.
Live forex charts are accessible online tools that you can use to benefit from forex trading. While there are other ways to create your trading strategy, live charts can give you a real-time picture of the ever-evolving market.
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