Reading Forex Charts

Reading Forex charts is fundamental for currency trading. The most common type of chart is the candlestick chart, which displays price movements over a selected time frame. Each candlestick represents an interval, and its body shows the opening and closing prices, while wicks indicate the highest and lowest prices reached during that period. Traders analyze patterns, such as Japanese candlestick patterns, chart formations, and technical indicators to identify trends, support, and resistance levels. Moving averages, RSI, MACD, and Bollinger Bands are among the tools used for further analysis. By interpreting Forex charts, traders can make informed decisions, predict price movements, and determine optimal entry and exit points for their trades.