What is a Forex Chart?

07

MAR,2018

What is a Forex Chart?

A Forex chart is simply a graphical depiction of foreign exchange rates between currencies that are shown through a graph. Forex charts are the backbone of trading as they allow you to not only track your trades, but also detect a trend line for future trades.

Most of the smaller traders and investors who profit from currency trading use charts that are offered directly from their brokerage services. New online brokerage services often include tools, like currency charts, in order to help their clients understand current pricing.

Look at your line graph against your Y axis. The Y axis, or horizontal axis, for a currency chart most often indicates a comparative asset price. When a line fluctuates, it shows how your selected currency performs against the currency or asset that is represented in the Y axis.

Check your X axis. The X axis for your currency chart represents your time frame. You will see that both of these axes have scaled, segmented values, where your line graph fluctuates in a variable way.

It shows how the exchange rate of currency pair has changed over time.

For example, the chart above (Euro vs. U.S. Dollar) shows how the exchange rate between Euros and US dollars has fluctuated over time.

Forex charts can be plotted for variety of currency pairs, from major pairs like EUR/USD and GBP/USD to minor pairs such as AUD/CAD and NZD/JPY.

Look for movement against moving averages. Moving averages tell you how the price has changed over a longer time frame. These may be helpful when you are viewing your currency chart.

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