Whether you trade on atfx or any other forex platform, you need to understand how they read Charts. Forex trades are all about studying trends in the market. Luckily, the market's movement is very predictable. It is always moving up and down. Whether the market moves up or down, you can still make a profit from the market - that is the juicy part. As expected, down in the forex market means a value drop, while up means a value rise. There is a chart that shows the history and movement of the market. The idea is to study this Chart to notice a trend and then pick a trade. A lot of factors come to play to influence the way a currency will react in the Charts. You need to have the eye and ear for these factors. Some factors are as simple as time. For instance, some currencies may reduce in value because they are not currently in use in their main countries. That way, you can predict a drop in value.
Other times, it may be a more complex reason that will cause a currency drop. For instance, something like the news can affect the way a particular currency behaves in the market. For instance, if there is good news about a particular currency, it will increase in value. These are some of the things that can make the value skyrocket. Whichever way, you need to learn how to read the chart if you don't want to be a successful forex trader. There are different ways to read forex Charts. You can read either the candlesticks, the line chart, or the bar chart. The line chart is our main focus in this article. Let's show you how to read forex line charts.
Pick your currency pair
When you choose the line chart, first agree that you are already at some disadvantage. The line chart is usually not as detailed as the candle chart or the forex bar chart. But when you want to compare currencies, these Charts are the best. You should use the line chart for this purpose. Another good use is to understand the currency strength. Let's assume you want to take a trade in the euro (EUR), you can compare its strength with dollars and other currencies before investing.
Determine your time range
The default chart you will be looking at on your line chart will show you the most recent activities of the currency. What you can do is to set a longer time range so you can study the patterns and trends of that currency. There is usually a limit to how far you can go back in time. But this limit is usually set by the platform you are using. The more you can study the trends, the better trades you take.
Set a reasonable pricing
Most likely, your line chart will use the current closing price as a default. But you should change that. What you can do to make better predictions is to set multiple price ranges for multiple line charts. That way, you will see things play out clearly. With this clear view, you will study the upward and downward trend, then you can pick your trade carefully.