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Title: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:21 am
How to read a trading chart.
Table Of Contents.
How to read Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) charts.
With many options for traders to figure out how to follow trends on Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) currency pairs as well as commodities and other instruments, the most trusted form would be to follow the charts.
Traders that use charts are labelled as technical traders, who prefer to follow the accuracy of charting tools and indicators to identify peaking trends and price points as to when to enter and exit the markets.
While, there are the fundamental traders who prefer to follow news sources that offer actual information on economic growth, employment situations, political threats and interest rates.
Practice your chart reading skills on a demo account or utilize them on a real trading account!
AvaTrade will guide you in reading price charts and predicting their accuracy while trading Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) and CFD online. To help you launch your trading career we will outline a few tips to assist you in understanding and reading charts.
Firstly, one needs to know what a chart is before attempting to dissect the information presented. In summary, a chart is a depiction of exchange rates that happen between financial instruments that are plotted and illustrated on a graph. The ability to read charts is part and parcel of trading, as it allows you not only to keep track of your current trades but helps to detect a developing trend line for your future trades.
Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:21 am
Understanding trends.
When you look at a chart and find a grouping of data plotted in a general direction, one can figure out an overall direction that an instrument is moving towards. Every chart and graph differs, on most charts trend can be determined quite easily, while other chart trends can be more complex.
Trends generally move in a series of peaks and valleys (highs and lows). When you refer to a Bullish trend you are looking at a succession of mounting highs and lows and a Bearish trend is a sequence of descending lows and highs.
There is another trend that is known as the sideways, flat or horizontal trend. This is depicted when the forces of supply and demand are equal, so there is more of a straight line then a view of valleys and peaks.
Trends are not only classified by their direction, but also by the time duration as the trend is taking place. There are long-term, short-term and intermediate trends that coexist and may have the same, as well as the opposite directions. They are pretty self-explanatory as they are time based and are part of the trendline you see when reading a chart.
Types of trading charts.
Clarity and a full understanding of what a chart is showing as well as the information that it provides is imperative to trading. When you board on online trading there are three main chart types that are popular among trading circles. Each chart has their level of information according to the traders' individual skill level:
Line Chart - The most basic of charts, and the stepping stone for the beginner trader. This chart represents only a closing price over a period of time, the closing price is often considered the most important element in analysing data. This is in essence, how the line chart is formed: by connecting the closing prices over a set time frame. There is no visual information or trading range, meaning no highs and lows and nothing on opening prices.
Bar Chart - Expanding in more detail on the line chart, the bar chart includes several more key fragments of information that are added to each data point on the graph. Made up of a sequence of vertical lines where each line is a representation of trading information. They do represent the highs and lows of the trading period as well as the opening and closing price. The open and the close price are represented by a horizontal shorter line.
The open price is the 'dash' that is located on the left side of the vertical bar and conversely the close price indicated by a similar horizontal line, however, to the right side of the bar. Understanding this chart is simple, if the left dash (which is open price) is lower than the right dash (closing price) then the bar will be shaded in green, black or blue and represents a price increase and the instrument gained in value. The opposite is true and the decreased value of the stock is indicated in red.
Candlestick Chart - Once you have mastered the line and bar charts, you can graduate to the candlestick chart which will be easier to understand as it is similar to the bar chart. The vertical lines of both charts illustrate the trading period's price ranges, while the body of the candle uses different colours to represent the market changes of that time period.
Open your trading account at AvaTrade or practice in reading charts on our risk-free demo account!
Candlestick charts detail.
Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:22 am
Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:23 am
Dating as far back as the 17 th century, the Japanese began using the technical analysis to trade on rice, although quiet different to the US version created around the 1900s their principles are similar.
In order to start creating and reading a candlestick chart, one should know that the data contains highs, lows, open and close prices.
The 'hollow' and the 'coloured' portions are called the body. The long thin lines above and below the 'body' represent the high or low ranges and are also referred to as either shadows, wicks or tails. Should the lines be placed at the top of the body this will tell you the high and close price, while the line at the bottom of the graph indicates the low and the low's close price.
The colours of the candle body do vary from broker to broker, where they could either be green or blue, illustrating a price increase or red being a decrease in price, or hollow candlesticks is where the close price is higher than the open price which will indicate to traders to BUY. Filled / coloured candlesticks where the close price is less than the open will indicate a SELL position.
Long versus short bodies will indicate the buy or sell pressure among traders. Short bodies represent there was very little price movement and are often treated as a consolidation pattern, known as doji.
Doji is an important facet of the candlestick graphs as they provide information in a number of patterns. These form when the instruments open and close prices are virtually equal and there's not much price difference. The relevance of a doji candles are to show traders that either: After a long white or green candlestick the buying pressure is starting to weaken, or after a solid long (blue or black) candle that the selling pressure is starting to decrease and the supply and demand are starting to even out.
Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:23 am
Graphical Analysis.
One of the most popular and reliable patterns of graphical analysis is the head and shoulders pattern. This pattern is a reversal pattern, that when is formed will be a sign that the current trend will see a reversal soon. There are two versions of the head and shoulders pattern:
Head and shoulders Top: Generally formed at the peak of an upward trend and signals that the asset's price is set to fall once the pattern is completed. Head and shoulders Bottom (or Reverse Head and Shoulders): Usually forming during a downward trend, the head and shoulders bottom pattern signals that the asset's price is set to rise.
Both have similar visual construction as each contain four main elements: two shoulders, a head and a neckline. Patterns are formed when the neckline (support and resistance) is broken and a second shoulder is formed. Heads and shoulders are formed by peaks and valleys on a graph. There are many other formations that traders turn to for analysing trade setup such as: Double top/bottom, triple top/bottom, Pinocchio, bullish/bearish engulfment, etc.
Incorporating a technical analysis tools into your charts.
As you grow more comfortable reading and examining the charts you will learn how to add other tools such as a technical analysis to measure the rate of market volatility and changes in value. These technical indicators available on Metatrader 4 and Metatrader 5 platforms can assist you in clarifying the exact market information that could be missed with some stocks or currencies that are commonly labelled as 'oversold' or 'overbought'.
In essence, technical indicators incorporated into your live charts like volume indicators, moving averages, MACD, trend lines, Fibonacci levels, stochastic oscillators etc., can block out the market noise, forming a better picture of the markets and trends that lie ahead.
AvaTrade have written this in depth guide in order for you to understand how some of the core technical analysis tools are applied by professional traders. Learn how to implement what you have learnt by means of our free demo account, test the tools and charts provided by our technically advanced trading platforms.
Join AvaTrade today, and become the trader that you were meant to be. Learn and empower yourself to trade with confidence.
We recommend you to visit our trading for beginners section for more articles on how to trade Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) and CFDs. Other recommended guides:
Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:24 am
Advanced Charts.
We have integrated TradingView's world-class advanced charting solution into our OANDA Trade web and desktop platforms. Advanced Charts offers a list of leading indicators and drawing tools, including trade through charts, 65+ technical indicators and more.
TradingView is the largest investing community on the web, with over 1.5m active traders sharing ideas, providing feedback and using the free stock and Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) charting trading platform every month. TradingView's open and free chart components are unsurpassed on the financial web and have been integrated into more than 8,000 stock and futures exchanges, websites and applications globally.
TradingView gives its global community of traders the ability to build the best and complete tools, encourage the sharing of trading ideas and connect data from around the world. You can use TradingView charts inside the OANDA Trade platform, as well as log in to your OANDA account on TradingView.
Trade from charts.
Place, view, and close trades and orders, including limit and stop orders, directly from Advanced Charts. Use the optional buy/sell panel or right-click on your chart.
Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:24 am
Best Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) Charts.
Mary Reed Davis.
Contributor, Benzinga.
Recommended Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) Charts: NinjaTrader.
Recommended Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) Charts: NinjaTrader.
As recently as the early 1980s, brokers and traders charted the movement of currency prices by hand with nothing but a legal pad and a pencil. In less than four decades, the charting industry has been revamped several times over, which has led to intricate, complex tables that traders decode today before executing currency trades.
Charting software allows those in any market to see price moves, observe changes over various stretches of time and combine this information to conduct market analysis and predictions. It's an absolute necessity for carrying out intelligent trades; without it, trading currencies would be a lot more like gambling: highly dictated by chance.
Contents [ Hide ]
Best (Free) Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) Charts.
Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:24 am
1. NinjaTrader.
This award-winning trading platform offers Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) traders FREE access to its advanced charting, strategy backtesting and trade simulation. It's well known for its sophisticated charting software, which has been enough to persuade many traders to switch from other trading platforms to NinjaTrader. If you are looking for a Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) platform that offers both strong charts and the ability to make trades, this could be a great choice for you.
NinjaTrader advanced Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) charting capabilities offer comprehensive tools customizable for your particular focus. It offers dozens of indicators for gaps, news, trends, swings, volume, reversal, volatility, value area, Elliot wave and more. Charts have multi-time frame and multi-tool analysis with hundreds of add-ons available from third parties.
While charting on NinjaTrader's sleek interface can be incredibly informative, there is a learning curve for new traders. NinjaTrader does have a wide range of useful educational materials are available including daily training webinars designed to educate new users on the powerful tools available, hundreds of on-demand training videos, and an informative YouTube channel. the NinjaTrader User Guide offers copious details on how to use each chart feature.
In terms of payment, NinjaTrader offers a range of options:
NinjaTrader is always free to use for advanced charting and trade simulation. As an added bonus, you can get unlimited free real-time and historical Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) data trials without a brokerage account! For live trading, you can use a free live trading license if opening an account through NinjaTrader Brokerage. You can also lease the program quarterly for $180, a half-year for $330 or one full year for $600. A Lifetime lease is also available for $999 which includes free software upgrades for life.
NinjaTrader itself does not offer smartphones or tablet options, but there are several plug-ins on the market that you can set up within your devices to be notified of trade updates. For U.S. customers trading through NinjaTrader Brokerage, they can choose to trade through Forex (http://forex.wine).com and Oanda .

Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:26 am
2. TradingView.
Without a doubt, TradingView comes in at the number one spot on this list. It is a favorite among a multitude of traders, thanks to the fact that its free version offers more features than several paid packages on the market.
For the Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) market, in particular, TradingView offers a view of all currency pairs, cross rates on the most commonly traded pairs, as well as currency indices and an economic calendar for major macroeconomic events. It also serves as a trading community; thousands of traders and analysts publish their ideas and forecasts as well as comments and assessments of trade patterns.
This can be a great tool for a new trader or someone who wants to become more familiar with the intricacies of trading a certain currency pair. A lot of TradingView users also noted that its option to make its trade histories public - even if only to friends or family members - gave them more accountability and improved their decision-making tactics. TradingView is available on your desktop, tablet and smartphone, all of which can be synced and saved in a cloud, which offers a seamless transition between devices.
TradingView Fees.
Free: Use on one device, up to one saved chart layout, no customer support Pro: $9.95/month (use on one device, intraday time frames, up to five saved chart layouts, regular customer support, and more) Pro Plus: $19.95/month (sync up to two devices, intraday time frames, up to 10 saved chart layouts, fast-version customer support, and more) Premium: $39.95/month (SMS alerts, sync up to five devices, intraday time frames, unlimited saved chart layouts, priority customer support and more)
Please note that you'll need to get set up on a trading platform in order to execute any actual trades, like Forex (http://forex.wine).com, Oanda, and others.

Title: Re: How to read a trading chart.
Post by: Indonesia on Apr 09, 2020, 07:27 am
3. FinViz.
This platform is another winner among investors across the world and is utilized by millions of traders, whether their focus is Forex (http://forex.wine), stocks or commodities. This web-based platform offers not just charts, but also heat maps, portfolio management tools and a host of news and blog links to keep you informed about what's to come in the currency world and the international market at large.
Heat maps are a favorite feature of FinViz, where traders can quickly analyze the health of certain currency pairs based on a color scheme from green (healthy) to red (unhealthy). There are also a host of free filters that can allow traders to narrow in on information geared towards their preferred currency pair(s). The downsides of the platform are that it is solely web-based, without mobile chart viewing.
Traders also complained that its interface is somewhat dated. Lastly, while the free version offers lots of information, it also crowded with numerous pop-ups. In terms of pricing, charts on FinViz are free, however, they are not all in real time, and some are even delayed as much as 15 minutes -- a big delay in the world of currency trading. An upgrade to FinViz Elite may be worth your money, as all features are given in real time, and the upgraded version also comes with access to advanced charting features like technical studies and performance tracking correlation charts comparing currency pairs or any commodity or stock.
The Elite version also offers the ability to do backtests and will give you email notifications about important market events in real time. The price for an Elite subscription is $39.50/month, or $299.50/year. A general note on using charts: Trading experts advise not using more than two different applications, including your trading platform, when it comes to looking at charts. Dancing across too many platforms can lead to more confusion, and may make executing trades more stressful than need be.
Final Thoughts on the Best Forex (http://betiforex.com/beginners-guide-to-iq-option-complete-review/) Charts.
Expect to use a good chunk of time reading trading charts, which is much like learning to read a new language. Once you've put in the work to be able to fluently interpret the information on the screen, you'll be one step closer to executing lucrative trades. Many newbie traders ask which chart setup is the best of the best, and experienced traders say that such a panacea simply does not exist.
If it did, financial institutions who are able to move the market would take advantage of it to beat retail traders. Thus, find the chart that works best for you, and you'll create the highest chance of achieving successful trades.