The use of Forex Charts is confined mainly to hands-on traders who do all the work themselves for the duration of the working week/month/year. This entails sitting in front of your PC for long stretches at a time and studying the charts. There are line charts, bar charts, pie charts etc.
The charts show Forex trading trend patterns and come in different shapes and sizes. One of the most popular is the candlestick chart (a sophisticated bar chart) which gives a lot of information to the trader.
Candlestick carries HIGH, LOW, OPEN, CLOSE for the price and possess a BODY. The color and size of the body supply traders with additional price details.
As we said traders who use charts are experienced traders who trade manually. For the beginner and part time trader Forex automated systems are the best options.
Such a system detects good trends, confirms them using internal indicators and opens the trades to take maximum profit for you and closes it if reaching takeprofit limit when the trade is successful. If the trade is losing the trade is closed by the system using signals on its internal indicators.
Simple systems using support indicators, resistance indicators and a few momentum indicators are all that's needed to succeed in Forex trading. Remember you make money by being right in Forex trading and how can you compete with a robot?
For any beginners though this is my advice - buy an automated system and learn the ropes from your support team, do paper trading or demo trading for a couple of weeks and start small. Do not use leverage until you are very proficient and forget about Forex Charts.
Richard Tyrell is a full time Forex trader who makes in excess of $7,000 per week. See http://www.forexaut.info for more. |
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