Chart for forex trading

Real-time Forex charts and quotes on TradingView! Forex trading ideas and a wide range of indicators for technical analysis.
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Trading the world's foreign exchange market can seem daunting, at first, to beginner traders. With the help of certain tools, decisions about what to trade and when start to become a lot more simple. There is, however, one trading tool that trumps them all - live forex charts. Live forex charts help traders analyse what is currently happening in the market. They also give special clues and insights into what could happen next - but only for those well versed in how to read forex trading charts.

In this article, we cover all you need to know about how to read forex charts, how to identify signals from different types of live forex trading charts, how to access free forex charts to trade from and why learning how to read candlestick charts could be the best thing you do this year. Before you can learn how to read forex charts, you first need to be able to access them.

Viewing live forex charts is essential to making trading decisions as they show all the buying and selling activity currently happening in a market. The MetaTrader platform is one of the best trading platforms used by financial market traders. Admiral Markets offers the following trading platforms, which all come with free forex charts:. Most forex traders start with MetaTrader 4, which you can download for free to start viewing free forex charts. One of the main benefits of these platforms is the fact you can trade directly from the chart you are viewing.

So, once you are well versed in how to read forex trading charts and can identify possible signals to trade, you can easily access a live order ticket to buy or sell. Disclaimer: Charts for financial instruments in this article are for illustrative purposes and does not constitute trading advice or a solicitation to buy or sell any financial instrument provided by Admiral Markets CFDs, ETFs, Shares.

Past performance is not necessarily an indication of future performance. MetaTrader will show you live forex pricing for the currency pair you are viewing. Typically, your broker receives market prices from the interbank market and their top-tier liquidity providers - ensuring you are truly connected to the global marketplace. In this section, we will cover the basic elements of reading a chart, before moving to some advanced chart reading in the next section.

Forex Market

All trading charts have 'time' along the horizontal x-axis and 'price' on the vertical y-axis. This means we can view historical prices as we move to the left of the chart. The dates and times shown will vary depending on how zoomed in or out you are on the chart. The more zoomed out you are, the more historical price action you will see. In forex trading charts, the vertical y-axis shows the 'exchange rate' pricing for the market you are viewing.

Based on this simple understanding of price and time we can deduce a few scenarios that help traders make decisions on what to trade and when:.

Forex Trading Charts - How to read Forex charts - Admirals

This may sound simple to some but is actually quite important. Because once a trend is set in motion, it could stay so for an extended period of time. To calculate how much a market moves up or down, we need to look at exchange rate pricing and what 'pips' are. The movement of a currency pair is often referred to in ' pips ', which stands for percentage in points.

Forex Trading Charts - How to read Forex Charts

Essentially, it is just a unit of measurement of price movement. Most currencies are measured in four decimal places. However, any Japanese yen JPY currency pairings are measured in two decimal places. Nowadays, due to algorithmic trading, most platforms offer precision pricing for trading robots to execute transactions within nanoseconds. This is why there is often another number in the exchange rate.

However, it can be ignored when calculating pip movements. Let's view an example:. In the screenshot above of part of a forex trading chart, the highest price level on the chart is 1. The lowest price on this chart is 1. This means the market declined, over time by 49 pips, as 1.

What does a price chart represent?

This is important, as it can determine your monetary profit or loss. When you open a trading ticket to place a trade you must fill out the volume, or position size, of your trade. This could mean two things from a monetary perspective:. This is a very simplified example and figures will vary according to the currency pairs you are trading and the position size you are using. However, risk management is an essential component of long term trading success.

To make it simpler for traders, Admirals offers a free trading calculator , which may prove to be very handy! When viewing the exchange rate in live forex charts, there are three different options available to traders using the MetaTrader platform: line charts, bar charts or candlestick charts.

In the toolbar at the top of your screen, you will now be able to see the box below:. The first option is to view your chart using OHLC bars, the second option offers candlestick charts and the third option offers line charts. Let's look at each of these in more detail. A line chart connects the closing prices of the timeframe you are viewing.

So, when viewing a daily chart the line connects the closing price of each trading day. This is the most basic type of chart used by traders. If you are using a Forex daily chart trading system with a line chart, you will mainly be able to identify bigger picture trends. Line charts do not offer much else, unlike some of the other chart types. An OHLC bar chart shows a bar for each time period the trader is viewing.

So, when looking at a daily chart, each vertical bar represents one day's worth of trading. The bar chart is unique as it offers much more than the line chart such as the open, high, low and close OHLC values of the bar. The dash on the left represents the opening price and the dash on the right represents the closing price.

The high of the bar is the highest price the market traded during the time period selected. The low of the bar is the lowest price the market traded during the time period selected. In either case, the OHLC bar charts help traders identify who is in control of the market - buyers or sellers.

These bars form the basis of the next chart type called candlestick charts which is the most popular type of forex charting.


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Candlestick charts were first used by Japanese rice traders in the 18th century. They are similar to OHLC bars in the fact they also give the open, high, low and close values of a specific time period.


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    • However, candlestick charts have a box between the open and close price values. This is also known as the 'body' of the candlestick. Many traders find candlestick charts the most visually appealing when viewing live forex charts. Any financial asset with price data over a period of time can be used to form a chart for analysis. On the chart, the y-axis vertical axis represents the price scale and the x-axis horizontal axis represents the time scale.

    Fortunately for us, Bill Gates and Steve Jobs were born and made computers accessible to the masses, so charts are now magically drawn by software. A chart aggregates every buy and sell transaction of that financial instrument in our case, currency pairs at any given moment. When the future arrives and the reality is different from these expectations, prices shift again.

    And the cycle repeats. Whether the transaction occurred by the actions of an exporter, a currency intervention from a central bank , trades made by an AI from a hedge fund, or discretionary trades from retail traders, a chart blends ALL this information together in a visual format technical traders can study and analyze.

    A simple line chart draws a line from one closing price to the next closing price. When strung together with a line, we can see the general price movement of a currency pair over a period of time. All you know is that price closed at X at the end of the period.

    You have no clue what else happened. But it does help the trader see trends more easily and visually compare the closing price from one period to the next. The line chart also shows trends the best, which is simply the slope of the line. Some traders consider the closing level to be more important than the open, high, or low.

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    By paying attention to only the close, price fluctuations within a trading session are ignored. A bar chart is a little more complex. It shows the opening and closing prices, as well as the highs and lows.


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      • The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid. As the price fluctuations become increasingly volatile, the bars become larger. As the price fluctuations become quieter, the bars become smaller. The fluctuation in bar size is because of the way each bar is constructed. The vertical height of the bar reflects the range between the high and the low price of the bar period. The horizontal hash on the left side of the bar is the opening price, and the horizontal hash on the right side is the closing price.

      A bar is simply one segment of time, whether it is one day, one week, or one hour.