Free Forex Charting
Forex trading involves different techniques and strategies. Without these tricks, no one can make successful trades. Every trader is aware of the technical analysis and its application. One can say that technical analysis is the key component of success in forex trading. The more one understands about technical analysis, tools, and strategies, the lower is his loss ratio. Trading without the help of forex charting is almost impossible. This content contains an overview of free forex charting, its pros, and its types.
What are forex charts?
The forex chart shows the price fluctuations under certain time- frames in the forex market via a different method like bars or lines.
A forex chart has two basic components.
- The horizontal line (x-axis) displays the time.
- A vertical line (y-axis) represents the price movements.
Why we use Forex charts?
We use forex charts to determine the future of prices by analyzing the past price movements and trends. There are many technical tools that one can apply on a forex chart to find the trend of bearish or bullish momentum. These charts provide you some basics and essential points of resistance/support level and when to trade with buying and selling points.
Some software provides basic charting and tools free of cost. However, to get access to the real chart and advanced tools you have to pay the fee. Live charting is paid because it is easy to predict the future price or trends of the market.
Types of Charts
Free forex charting is classified according to the time-frames. There are three basic types of charts. However, there are sub-divisions of these main charts.
- Bar Chart
- Line Chart
- Candlestick Chart
The bar chart belongs to the basic and simple type of forex charting. It mentions the hike and downfall of prices in the market. They give you an idea of trends and momentum. You can also determine the expected time for the next trade by using this method. For this, you need to put horizontal and vertical lines on the top and low of bars for the selected time- frame.
Inline charting, we use basic lines with angles on the upper and bottom of the chart line. This chart is useful to predict price and momentum. The horizontal lines denote the upcoming rate, whereas the vertical lines indicate the expected time for the financial instrument to hit its predicted price. You can select any time-frame as per your trade strategy. But most traders use line charts for the short- term trades.
This chart represents the candles that show the buying or selling of a specific instrument. These are the most basic and used charts by traders worldwide.
A candle-stick chart comprises two things. It involves the body of the shadow.
In this chart, an empty or red candle shows the selling pressure that the price of the item will go down. Similarly, when the candle is filled or green it shows buyers are in control, and the price will rise. The candle-stick chart shows the highest/lowest prices in a long time frame.
There are two terms of the candle-stick chart, the bullish candle, and the bearish candle. To differentiate between them, a comparison between the opening and closing price is made. A lower opening price than a closing price is a bullish candle. When the closing price is lower than the opening price is a bearish candle.
Expert Trading Charts
The expert trading charts are undoubtedly the advanced type of forex charting. They also involve the Japanese chart. Expert charts help the trader to identify any false move in the price of the market.
The two most incredible expert trading charts are:
1. Heiken- Ashi
This Japanese expert trading chart Heiken-Ashi (moving bar), is easy to use. It immediately spots a fluctuation or movement in the market. Heiken-Ashi uses an arithmetic formula to calculate the average of four different scenarios. It includes the opening, closing, high, and the low prices of the present or past candle-sticks.
The Renko chart is for the measurement of price fluctuations of a forex currency pair. Renko’s charting is comparatively tough than Heiken-Ashi. The price is measured by a different method that is the addition of the brick to the price chart as the price reaches a specific level.
Verdict ( Free Forex Charting)
Various forex charts are available in the market to help you. Different types of patterns are built on the forex charts to attain proper results. Charting is easy, but it is recommended to practice them on the demo account to avoid failure. Despite the versatility and advancement, the bar, line, and Candle- Stick charts are popular.
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