An Introduction to Chart Reading For Forex Traders


Forex trading involves special techniques and also the use of good strategies to lock in profit in a trading account.

The main reason why most traders end up losing their account is because they don’t follow precise rules and strategies.

For someone who wants to be a professional in forex trading the fundamental analysis which is categorised as the news trading is a very key part to successful trading.

The news is not what controls the market in forex but the activities and reactions to the news in a country is the driving force of erratic volatility. News trading is essential if one wants to be a successful forex trader because it is in this event that a well trained professional can make a good sum or huge turn over in less than minutes.

There are some major news analysis or releases that should be taken into consideration when trading in the foreign exchange market. These reports are so important that a lot of indicator traders might just have to exit trades until the impact becomes tranquilized.

As a forex trader, one of the first thing you need to have is the ability to read and study chats. In a platform you have different chats with different time frames. The time frames range from one minute, five minutes, fifteen minutes, thirty minutes, one hour, four hours, one day, one week, one month respectively. These chats simply shows the different time frames in the market and their behaviours in the market. For an effective chat reading and understanding it is best advisable to use chats with higher time frames because the issue of noise will be filtered.

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