Forex Charts in Review and Helpful Interpretation Tips
When learning how to read and interpret the foreign exchange market chart, it is important to remember that there are two basic approaches to the forex market. The first approach is fundamental analysis, which does not rely heavily on the use of charts. This method uses political and economic factors to influence trades. The second approach is technical analysis, which relies more heavily on the use of charts to analyze the relationship between price and time. The technical approach uses charts to predict where prices are going by studying the historical pricing activity.
It is important o learn how to interpret forex charts in order to make strategic trading decisions. Most charts will have Currency A displayed on the left hand of the chart, while currency B is displayed on the right. The time is displayed horizontally along the bottom of the forex chart, and the price will be exhibited vertically along the right side of the chart.