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The best way to analyze your trading chart

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  • The best way to analyze your trading chart

    Trading the financial instrument can be very challenging. We have seen a lot of people who are really messy in their real life but when it comes to Forex, they are really neat and clean. They have got a good setup in their office or how from where they work, they have got a nice computer with stable internet connection and their trading platform is really super cool. There are no patterns which congested their charts. If you want to maximize your productivity in Forex or in any other investment industry, you should know how to get the most out of the minimum.

    Your chart is your gateway to the market. You cannot go the market physically and ask every person what is the price of your currency pairs, if it is going up or going down and if the market was volatile today. All you can do is look at your chart and analysis the market. This is why it is of very important you keep your chart neat and clean. There should be no extra patterns in your chart. There should be no information that is useless flooding on your chart. If you want to get the most amount of important information, you should keep your chart neat and clean.

    But I need to use many indicators

    No, you do not. A lot of people think using many indicators in their charts will improve their trading. It is going to tell them more information and when they do it, they get the opposite result. They get confused at first. These indicators cannot say what is happening in market, they can only assume it. Moreover, these indicators do not appear live on the screen, they only appear when the event is already passed on the market. It is a big problem for traders who are using many indicators. You are trading on live markets and you need live information, you cannot use indicators that are showing you past trend.
    Indicators are nothing but the helping tools for the professional traders in the exchange traded funds community. They never execute any trade based on the readings of the indicators. Since the indicators are of two types i.e. leading indicator and leading indicators, you can never really trade the current data of the market. However, when you spot any trading signals in your trading chart you can easily do some quick check by using the indicators readings to get a general idea about the quality of the trading signals. But even after doing all these hard work you can’t say that you will have 100 winners from the market. So never trade with big lot size to make some quick profit from this market.

    Clean chart is easy to understand

    When you are eating your dinner with your family, you always want to go to a clean and neat restaurant. It is very normal because everybody likes neat and clean when they are eating. The same goes for you when you are trading. A clean chart is easy to understand and you can get the information by a glimpse.

    Learn about the Japanese candlestick

    Japanese candlestick pattern trading is often known as price action trading. This system is extremely simple and it will give you a precise entry point for the different currency pair. But when you do the candlestick pattern analysis make sure that you are using the daily or higher time frame. In the lower time frame, you have to deal with lots of false trading signals and it’s nearly impossible to filter the quality trades. However, if you want to trade the high impact news data then you can do the multiple time frame analysis in the lower time frame to trade in favor of the news. But news trading is extremely risky and you should learn this technique by using a demo account.