FOREX Charts for Mobile phones

Are Currency Trading Charts an Essential Requirement Anymore?

The change in the price of a currency is shown by numerical quotations usually to 4 or 6 decimal places as well as in graphicalterms with a currency price chart. The pricing chart is principally used as the essential instrument when conducting any form of technical analysis. Although different markets behave in very different ways, for example the fx market and the commodities or stock market behave in disimilar ways and they have different outside influences affecting their movements, they all necessitate fundamental and technical analysis in order to offer a profitable trading strategy.

Technical analysis focuses on past data to search for and spot patterns that aid traders to try and anticipate what is likely to happen in the future. This historical info is displayed as a chart and can be configured to display all kinds of relevant data. Those who think that technical analysis is the most effective method to compute a profitable strategy employ forex charts extensively to discern previous market behavior in an aim to predict with a fair amount of certainty the future behavior of the forex market.

A big advantage of fx charts is their flexibility. An analyst or trader can look at a selected time period of information whether thats in minutes, hours, days or weeks. It doesn’t matter if a trader needs to see the currency movement over seconds and minutes or hours and days, a chart can be configured to display the eact time periods required. If a client is looking longer term in their strategy they may well configure a chart which shows the forex they are trading for the past 6 months, 1 year or 3 years

and have the time segments as days or weeks. This is a fundamental advantage of using charts as you can narrow in on the particular information that is most relevant to your trading strategy.

On completion of the initial set up of the pricing chart, it should now be displaying the currency in the time frame required by the user. It is from here that the technical analysis can be started. Of the numerous different technical indicators which are in use nowadays, they mainly fall into these categories:-

1) Volume Indicators

2) Momentum Indicators

3) Moving Average Indicators

1) The volume that is traded during a period can indicate the strength of backing for a price move and if it will actually hold.Volume is used to affirm a trend in price and mostly when a trader or an analyst refers to volume they are referring to the OBV or ‘On Balance Volume’

2) Widely used momentum indicators include stochastics, Relative Strength Index or RSI and the Moving Average Convergence/Divergence or MACD. Momentum indicators mainly signal trend strength These momentum indicators will allow the viewer to see the oversold and overbought areas of the chart and measure the divergence of the signal lines.

3) The moving average represents price demand averages and is an strong trend following indicator.

Technical analysis is a very detailed and complex part of trading and the above brief description has barely scratched the surface and is a testing area for any trader to learn and perform well.

Conversely fundamental analysis is interested with actions both now and in the future that will affect the fx market. Fundamental analysis seeks to assess the impact that chief financial and economic announcements and decisions will have on the forex market. Of particular interest is anything originating or concerning the U.S, UK, Eurozone countries, Japan and China.

Fundamental traders would pay particular care to interest rate decisions, central bank announcements, national employment statistics and GDP just to name a few areas of interest. These announcements and decisions will affect the currency prices to variable degrees as well as key worldwide events like war, natural disasters and terrorism.

The importance of currency trading charts is obvious to anyone attempting to incorporate technical analysis into their trading however it is a mistake to rely on charts alone to trade forex as fundamental analysis highlights the outside factors that influence forex movements. Regardless of a traders preference toward either technical or fundamental analysis it is clear that unless you use a forex robot to help you trade you will need to become an expert in setting up and using trade charts.