Quick Start Guide Advanced
A forex chart is like a tool box that has all the necessary tools that caters to the specific task at hand, providing the right tool for a specific need. Forex charting is an invaluable tool for any forex trader, but especially invaluable for the technical trader, because these charts provide an insight into market movements. Unlike fundamental traders who trade on news, technical traders study the history of a currency’s activity to determine possible future direction in that market, allowing the trader to study the market behavior over an extended period of time.
In a quick attempt to have a snapshot of the price movement history for a certain currency, we use Forex Technical Analysis to better our forecast of future price movements. It doesn’t take a genius to put this information together and to have a better ability to assess your next move. You should do that every morning before starting your trading day.
Once you get yourself at your trading station, you need to get familiar with what has happened on the market since the last time you traded. Remember, even if you trade daily, forex trading takes place around the clock and around the world, so chances are that you missed something.
Below you will find the different cycles that the market will often be found in. These cycles include trending and ranging markets and are made up of the following characteristics.
- Fibonacci Retracements