One of a key element in forex trading is the
visual chart and learning to identify trading chart patterns can help to make
wise decisions in trading. Technical
chart patterns will also provide insights to future market movement of the
currency prices, which is the foundation of technical analysis.
Most trading charts are now presented in
the form of candlesticks. The candlestick is the graphic representation of the
price bar: the open, high, low, and closing price of the period. The
candlestick has become a widely used tool in online forex trading because it
graphical representation provides useful information compared to other charts
types.
When you use trading software with visual
charting capabilities, there are many patterns that you must learn to identify.
Most common and basic technical chart patterns include triangles, pennants,
flags, wedges, head and shoulder and rectangle channels.
Why is visual charting
an important skill in forex trading?
* Visual chart
patterns allows technical trader to focus only on price action without using
other complicated indicators that manipulate price action with complicated
formula which further confused a trader.
* Fundamentals appear
quickly in price movements, therefore by observing the charts a trader is able
to monitor not only the news, but also get first-hand knowledge on how market
participant react to each news report.
* Trends are visible
and repetitive. With a little bit of skill and experience, trend can easily be
identified on a visual chart. Then, forex trader can perform trend analysis
straight from the chart using envelope , trendline tools, Fibonacci tools and
pitch fork to create a channel where boundaries can be defined to perform trade
entries and exits.
Visual Chart Trader is
Your Edge to Forex Trading
A visual chart trader
ensures that the trader can better trade technical chart patterns in three
ways. It provide an objective third-party verification of chart patterns
formation, initiate trade immediately if chart pattern formation is confirmed,
next, it makes trading chart patterns
less subjective in nature as the trader using the visual chart trader has to
programme its trading rules by way of drawing lines onto the chart for trading
later.
Most importantly, the trend line ea (visual chart trader) make full use of the
traders’ technical analysis plan and initiate trade entries and exits according
to traders’ trading plan. This way of trading will reduce traders’ emotions
while trading and make trading less stressful.
Forex charts are the primary tool for
technical analysis. With trendline ea,
you can both analyze the price patterns and initiate trade entries and exit at
the same time. Everything about
Forex charting can be learned and if you do your homework and use the trading
tools for visual chart trading, you should have an edge and be rewarded with
the opportunity, to make gains in the forex market.
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