Forex Charts

Once an individual has chosen a broker and began trading on the foreign exchange market, it is highly unlikely that they will be continuously successful without the use of a forex chart. A forex chart is used when technically analysing the movement of the market – it is often best understood through the Elliott Wave Theory, a theory that identifies how the movement of a market can be predicted by observing the repetitive behaviour of waves. A forex chart, which are now readily available online in various forms and styles, illustrate these ‘waves’ (the movement of currency), but also provide the user with further relevant information. As currency is always traded in pairs, i.e dollar and euro, forex charts will visually show how much of one currency is required to purchase a certain amount of the other. For example, when dealing with dollars and euros, a forex chart will align one currency on the left hand side, and the other to the right. Therefore by use of bars, points, lines etc, the user of the forex chart can assess the relationship (in terms of price) of the two currencies. The chart will display the last price, its time, and date, which are fundamentally crucial to the trading process.

As most forex charts are on-screen visual images and not print images, potential users have a wide selection of online forex charts to choose from, depending on their preferred interface and required information. For example ‘DailyFX’ offers a free java forex chart; no download is required. The chart is competent and ideal for a beginner to the market, however its basic features leave a lot to be desired for the experienced trader.

‘Xtick Professional’ charting software offers extremely powerful technical analysis forex charts. The software offers nine different types of chart to suit the user’s needs, and ‘intraday timeframes’ are available, meaning traders can assess updated movements in the market every minute. Increased features and usability such as those found in the Xtick software comes at a price however, and this particular charting program is priced at $70 a month, however an eight day free trial is available.