Just about all professional strategic forex traders who work for the major banks and hedge funds use currency charts to give them the edge they need to profitably trade forex. Also, those who have a life or job outside of their forex-related activities use currency charts to easily catch up on any important market moves missed while they were away from a trading screen.
In addition, currency charts allow smart forex traders to forecast future exchange rate movements using technical analysis, including identifying key support and resistance levels on currency charts. These levels allow you to optimize the placement of entry, stop-loss and take-profit orders. Below is a list of charts of the most frequently traded currency pairs along with information in regards to each one:
Some technical traders also draw trend lines between successive market highs or lows on currency charts to identify additional high-probability trading opportunities. Others might use technical indicators like the Relative Strength Index or RSI on their currency charts to identify oversold or overbought currency pairs due for a correction or reversal. Still others might use Moving Average-based technical indicators, or even a combination of indicators, to give trading signals to buy or sell based on currency charts.
Which indicators to use
There are thousands of indicators on the market, but a surprising few have become popular over the years due to their ease of use and success at gauging market sentiment. There is no perfect set of indicators. Traders may change their preferences over time or adjust to changing market conditions, but the general rule is to limit the number you use to less than a handful. Too much information can limit your ability to react to obvious trading set ups as they arise. Fine-tuning a small set of indicators is highly recommended.
Invest the time to learn the nuances of your chosen indicators and chart formats, and you will become a more effective and, hopefully, more successful trader along the way.
Currency Charts for the Majors and Minors
Basically, those wishing to trade forex in the major and minor currency pairs involving the U.S. Dollar really need currency charts to give them an advantage that can significantly enhance their profitability. The primary major and minor currency pairs for which accurate currency charts are provided include the following:
Having accurate currency charts for the cross currency pairs that do not involve the U.S. Dollar can also really enhance your forex trading success because trends frequently occur in the major and minor crosses that provide highly-profitable trading opportunities for the trader willing to focus on cross currency charts.
How to use your currency chart
Your forex chart is your best “weapon” for deciding when to enter and when to exit a currency position. The future direction of a particular pricing move is always a “50/50” proposition, but your indicators may guide you as to whether the probabilities favor one direction over another. Discerning the consensus of trader psychology at a given moment is your objective with your chart, but charts are never perfect in this regard. Time spent testing your trading system on a free “demo” account with virtual cash and real time quotes is imperative to gain interpretation skills that will give you an “edge” in the market. If you limit your losers, and let your winners run, you can bias the odds to favor your disciplined approach.