Brokers who facilitate the mechanics of the trades for individual traders typically offer access to a trading platform. Forex charts are a major component of a trading platform’s purpose. The trader can see a representation of what the market is doing. These charts can be customized in many ways to make them more responsive to the trader’s needs.
Adding color to various aspects of the charts can help to call attention to the movement, to the trends and also to the overall readability. You can usually change both the background color and the color of the fonts used. Historical price lines can be displayed in a variety of colors. Sometimes a platform will allow rising price patterns to display as one color and falling prices to appear in a second color. Adding studies or textual information on the chart can be be displayed in alternate colors.
Many traders add various trend lines to a display. Trend lines show visually historical activities and how they can be projected into the future. Typically, a trend line uses two reference points and draws a line between them. The line is extended into the future time intervals. One example of a trend line would begin with a perceived low point in prices, move to the next low point in the cycle and move on to project potential patterns and price points.
You can choose to add information such as price studies. One example is moving averages. By using two different time intervals to average prices and superimposing these two lines on the display, you can watch for places where the actual line crosses the averages. These are often used as entry or exit points on trades.
The number of active currency pairs that you display on your platform is usually able to be limited. You may have a platform that only displays the most active trading pairs. Other platforms offer a large number of pairs to choose from. Traders can remove the low-volume pairs from consideration. Usually only a few of the high-volume pairs will be enough to offer numerous trading opportunities.
Most platforms allow you to watch the history of trades in different time intervals. You might look at a 30-second chart or a 5-minute chart. The different time intervals allow you to observe trends and patterns that might not be as apparent in real time trade records.
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