Charting in the Forex
Charting is a primary tool of use by the forex trader. Combined with solid fundamental analysis, it give traders insight into trade timing and potential profitability.
Reading and analyzing charts is something that you get better at with time and experience. But it’s also easy to abuse, as it’s a highly subjective exercise that you must learn to adapt to your trading style. Be sure to understand whether you’re long- or short-term focused, and decide if you’re aggressive or more conservative, as those factors impact your use of charting and technical analysis.
We will assume for this section that you understand that a chart plots a currency pair’s price movements over time.