If you have been looking for how to read a forex chart then you are in the right place where you will get to know that how does it look like and how does it work. The forex chart is the best way to read the movement of the price for a certain period. You can check this online from the websites or from Google, the best and most authentic site for looking these charts is ACE Money Transfer online website where you will get the most recent and actual results because they provide the real rates without making you pay any extra charges.
The shape of a forex chart it looks like a rectangular these are of 2 colors; one is black and the second one is white. The black one shows the opening price on the top and at the bottom, it shows the closing price. The white rectangular box is totally different from it; as it shows the closing price at the top of the chart and at the bottom it shows the opening price.
Having a proper knowledge about these charts is the best thing to do as these charts will helps you to see the fluctuations in the prices, you do not have to go to some expert to know about the movement of the price as you can check each and everything on internet on your own without wasting your time and money in asking about the changes in the chart. It is also the easiest way to have a better knowledge about the forex exchange rates because it is really very easy to use and to understand.
The first thing you have to do is to take access to the currency information; the trading service you have selected will provide you with this service for your ease. After that limit the time frame of your currency chart, that for who long you want to have this information; it can be 1 year or 1 day, as per you have selected. In the chart, you will notice the movement of your currency line, as it will show the value of your currency whenever it will fluctuate. The X-axis on the chart represents the time frame you have selected and the Y-axis represents the comparative asset price.
The pattern of candles
There are two types of candle patterns and these are as follows:
- The first one is the white candle represents an empty bottle. It is a bullish pattern candle. The purpose of this chart is to show when the prices are open near the low price and are closed near the high price. The top of it shows the closing price and the bottom of it shows the opening price.
- The second one is the black candle it represents as a filled bottle. It is known as a bearish pattern candle. This candle represents the prices that are open near the high price and are close near the low price. The top of it shows the opening price and the bottom of it shows the closing price.
This chart is really very easy to use. The best thing about using this chart is that you can easily get to know about the fluctuations in the prices of the trade. Now with the help of this, you can be aware of each and every movement in the price easily and now you do not have to go to any bank of any expert just to know about the fluctuations when you can do it by yourself.