Best Forex reviews – Achieve the impossible by reading charts better

Forex companies which perform best, have traders and investors who bring maximum turnover to the business entity. Best Forex reviews for a particular brokerage firm depend on people who make it happen. Below we present you a few pointers on how you can read charts better and with ease.

When you are able to interpret charts well, then you can achieve quick progress. Simply because by interpreting the charts quickly and being updated on important happenings in the FX markets helps with in comprehending the market effectively. In this way, you implement the right transactions and optimize your profits. Please find a few pointers below on how to read charts posted by Forex firms effectively.

1. If you want to buy a currency pair, then you open a long position. Afterwards you need the chart of the currency pair to go up. On the other hand, when you sell a currency, you go for the short pull. Which means you want the chart of the currency position to dip down.
2. When it is denoted as EUR/USD= 1.7896 then USD is the base currency and not the other way around. The ask price or offer price is the buying price while the bid price is the selling price. In case you are buying a particular currency pair, you expect the base currency to strengthen against the term currency. In case of a sale, you want the base currency to weaken against the term currency.
3. On most forex charts, it is the bid price that is always displayed rather than the offer price or ask price. For example, the current price of EUR/USD is 1.2055 bid and 1.2058 ask (or offer price). The higher priced one is the asking price or buying price as it is inclusive of the spread values while a lower bid price is denoted as the selling price. This is how the price chart is read or interpreted.
4. The time displayed at the bottom of Forex charts relate to the Forex provider’s time zone, whether is GMT, New York time zone or any other time zones. Have a time zone converter on your desktop so that you are attuned to the timings when major trade transactions take place.
5. There are concepts called “candle open” and “candle close”. The concept is pretty simple laid out. Candle open is before the opening of an announcement in the trading market. Candle close is trading transactions affected after the announcements have been made. You need to take your time clock set to the minute. Most of the volatile happenings in the market take place the exact minute after an announcement is made. So proper precautionary measures need to be taken in this regard.

So, next time you come across with Forex charts be sure to read them in the right meaning. This will help you know exactly what is happening in the markets. You can therefore avoid making undue losses. Knowing your charts well definitely is a major component of technical analysis in the FX market.