Good morning, traders and cyprusthrivers! Today kicks off with a little bit of education here at cyprusthrive. For those of you who are rather new to trading, we will briefly walk you through chart pattern reading.
What’s the main purpose of charts in forex trading?
The answer comes easy – charts allow traders to track real-time exchange rates and price movements of an asset. Reflecting the exact actions (buy or sell) performed on the market, charts keep traders tuned in to the market vibe.
What are the most common chart forms in forex?
Price charts come in variety of forms that include bar charts, Min/Max, Bollinger Band®, candlestick to only name a few. Whatever the form, they serve the very same purpose and are characterised by granularity.
Granularity represents the time frame corresponding to each reporting period represented in the chart. Fig. 1 below shows a 1 minute granularity, meaning that at each data point or tick the price chart will display the pricing information relating to the previous period (each minute in this case).