Fx Trading Platform – How to Use Charts and Indicators to Your Advantage

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Forex (or foreign exchange) trading involves making price predictions about currencies without owning them, using leverage to increase returns and multiply returns. The actual Interesting Info about forex robot.

IC Markets is a forex and CFD broker licensed by ASIC, CySEC, and Seychelles FSA with over 80 forex pairs available to its clients; 32 cryptocurrency pairs; 31 commodities; 149 stocks, and 33 indices to trade.

Line Charts

Line charts are an accessible form of forex trading chart, showing price movements over a specified period in one currency pair. They are easy to read, help reduce market noise, and offer a clear view of price movement; thus making them ideal for novice traders. Unfortunately, they do not include open, high, and low prices which is essential in some strategies.

Traders utilize various chart types depending on their trading style and objectives. Technical traders who focus on patterns may favor candlestick charts while fundamental traders might use line charts instead.

When creating a line chart to represent data, you must consider how many lines will appear on it. Too many can become unreadable; while a few well-placed ones can make the graph easier to comprehend. To maximize reading comprehension, aim for no more than 5-7 lines on the graph at any one time and add gridlines whenever possible to highlight data points for readers so they can identify whether the line is going up or down and measure any changes occurring over time.

Candlestick Charts

Candlestick charts are an increasingly popular trading tool because they give investors insight into market sentiment. By showing how buyers and sellers interact with prices over a set period, candlestick charts provide investors with insight into potential trend reversals or continuations that could alter future investing decisions.

Candlestick charts show opening and closing prices for a particular period, while its body shows opening and closing prices in that time frame. A black body represents strong selling pressure during that period while white bodies indicate strong buying pressure during that same timeframe. Shadow lines extend beyond either end of a candlestick to represent a range of price points reached during that timeframe; longer shadow lines indicate more intense selling or buying pressure at play during that period.

Shapes of candlesticks can also help identify different patterns. A hanging man pattern could indicate that bear traders have gained control during a session and could potentially force prices further lower; conversely, shooting star signals that bull traders are readying an upward move.

Moving Averages

Moving averages are an invaluable indicator for traders. By eliminating random fluctuations found on price charts, moving averages make it simpler to identify trends and predict their course.

Moving averages come in various lengths and calculations can take many forms; simple moving averages give equal weight to each data point, while exponential ones place greater emphasis on recent prices, enabling it to quickly react to price changes. There are also linearly weighted moving averages and weighted exponential moving averages available as options for analysis.

Moving averages can help traders identify trends in the market and can be combined with other indicators to enhance performance. If the moving averages of a currency pair cross each other, this may signal a change in momentum that traders can capitalize on by placing trades accordingly. Moving averages can also serve as the foundation of many other indicators like moving average convergence divergence (MACD) histograms.

Pivot Points

Pivot points are widely utilized in forex trading to identify key levels of support and resistance, when prices move above or below these points, it signals an uptrend or downtrend respectively. Traders can use pivot points as guides for when to enter and exit the market; however, these shouldn’t be relied upon exclusively as prices can often break through pivot points.

To calculate a pivot point, you will need to know the previous day’s closing price, high, and low prices as well as any significant fluctuations over time. Once this information is available to you, calculating its central pivot point by adding these figures together and dividing by three will produce your pivot point; from here you can use it to identify other pivot points as well as supports and resistances in the market.

Pivot points provide another useful function of forex pivot points – their ability to anticipate trend reversals. Traders usually buy at retracements to support or resistance levels and sell at any retracements to resistance pivots respectively, giving traders a way to capitalize on trends without chasing them and thus making pivot points an efficient tool in forex trading.

eSignal

eSignal is an award-winning trading software with advanced analysis tools and real-time data streaming, customizable user interface, and real-time streaming data. Traders can customize their experience according to personal preferences for an edge in fast-moving markets. Furthermore, this company provides training webinars and seminars to become more effective traders.

eSignal allows traders to customize their charts by choosing from various chart types and intervals. In addition, traders can access technical studies, drawing tools, alerts, and trading integration functionality as well as set up real-time scanning and screening of stocks, futures, and Forex markets with live updating watch lists.

eSignal offers instantaneous execution through integration with direct access brokers, and offers virtually limitless global scanning opportunities using technical or fundamental criteria. Users can add custom indicators, Bollinger Bands Tool Kit fundamental data from Factset Research Harmonic Pattern Indicators Heston Market Profile to the eSignal platform as well as access its comprehensive News stream or the eSignal Trader Education Centre to further understand FX investing.