MetaTrader 4 Tutorial – Chart Analysis
February 15, 2010 by admin
Filed under Forex Brokers
An in depth tutorial detailing how to analyze charts in MetaTrader 4.
For more information go to www.traderschoicefx.com
Throughout this tutorial video you will learn how to analyze the different types of charts in Metatrader.
Metatrader is a widely used platform that is favored by beginning forex traders, and seasoned veterans alike.
TradersChoiceFX works with several different Metatrader forex brokers. You can substantially improve your forex trading through the TradersChoiceFX massive cash bonus program.
You can benefit from a cash bonus on every trade that you place.
Since TradersChoiceFX is compensated by the forex broker, this program is absolutely free to you.
To get paid to trade forex simply click this link:
http://www.traderschoicefx.com/self-traders/trade-rebates.html
You can also check out a free Metatrader demo account to practice your charting techniques. To get this free demo account click the link below:
www.traderschoicefx.com/demo
Duration : 0:9:48
Reading Forex Charts
March 20, 2009 by admin
Filed under Forex Fundamentals
Reading Forex Charts
As a Forex trader, the Forex chart isn’t only your friend, it’s your trading lifeline. Reading charts isn’t all that difficult, but it is a crucial skill that you will need to master. Whether you are a fundamentals trader or a technical trader, you will need to master chart reading. There are a number of vendors offering Forex charts, and your Forex broker should offer free charts with your account. Each chart is going to look a bit different, but they all have a few things in common.
Look at the chart above. Starting at the top, we can see the currency pair. In this case the currency pair is EUR/USD. So we are seeing the value of one Euro expressed in Dollars. There are various numbers: open, close, high and low. These numbers represent the value of the EUR/USD on the given date which is August 18th. Keep in mind that the dates and times are going to be based on a certain time zone that will not likely correspond with your own timezone. For each chart, you will need to know which time zone is represented. In some cases, the time zone will be the same as your broker’s location. So if your broker is based in New York City, then East Standard Time may be the charting time. Also, each chart can cover a different rate of time. In this case, each line represents a full day, but you can adjust charts to show five minute intervals or one hour intervals.
If you are doing short-term trading, you might want to look at a minute by minute chart. So check the bottom of the chart which will show you how long the time interval is. Below, we see a lot of red and blue lines with different notches on them. The currency prices are represented in this way because this is an OHLC chart. OHLC stand for Open, High, Low, Close. Each one of those lines will give us this information. Look at the last line on the chart which represents a single day. In this case, August 18th. Look at the small notch on the left. You will notice that this notch is located at 1.469455. That is the same price as the Open. So you can see here that the left notch represents the opening price for that day. There is also a corresponding notch on the right. It is higher up, near the top of the line. That notch corresponds with 1.479355 which you will notice corresponds with the closing price. So you can see that the opening price was around 1.4694 and the closign price 1.4793, which means the Euro rose relative to the US Dollar during that day. Because the Euro rose, the line is blue.
If it had fallen, the line would be red. In fact, if you look carefully, you will see that every time the opening price (the notch on the left) is higher than the closing price (the notch on the right), you have a red line because the opening price was higher than the closing price. Likewise, every line that has an opening price notch on the left that is lower than the closing notch on the right is colored blue because the price rose during the day. We know the price rose because the closing price was higher than the opening price. So what about the rest of the line? Why are some longer than other? The rest of the line shows you the trading range during the day. The lowest point on the line is the lowest that the currency pair traded at during the day. If we look again at August 18th, we can see that the bottom of the line corresponds with the value of 1.463025. The top of the line represents the value of 1.479355. Looking up at the top we can see that these two values are the same as the high and low of the EUR/USD currency pair. That means that at one point in the day the Euro was worth as many as 1.4793 US Dollars, and at another point during the day, the Euro was worth as little as 1.4630 Dollars.
So the top point and the bottom point of the lines represent the top and bottom prices. The longer lines generally mean that the price was more volatile moving a great deal during the day and the shorter lines mean that the price was more stable, moving on a slight amount during the day. Looking closer, you can see that there is a green line and a red line running across each of the days. These two lines are moving averages. They represent sort of an average of prices across days. Basically each point of these lines averages out a certain number of previous days’ prices. That way we can get a general idea of where a currency is moving without just staring at the prices and getting bogged down in data. Another type of chart is the Candlestick chart:
A Candlestick chart is the same as the OHLC chart, except the skinny line represents the day’s range (the low and high prices). The fat part shows the range of the open and closing prices. If the fat part is clear in this chart, the price went up during the day, if it is solid then the price decreased. Once again, we have two moving average lines, which are the red and green lines. So if you can read the OHLC chart above then you should have no problem reading the Candlestick chart. Now that you can read basic charts, you are well on your way to becoming a Forex trader. Sure, advanced charts have a lot more data, but the most important data is all covered in the basic charts above.
© GetForexHelp.com