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Saturday 24th of June 2017

Selecting Time Intervals In Forex Charts PDF Print Email
Finance - Investing
Written by: Ricken Osten   
Wednesday, 01 June 2011 13:04
Forex charts are available in almost every platform. These charts are structured as you might expect with history and real time trades. The typical chart will offer a variety of time intervals. You can often select from a drop down menu. Some charts are updated in real time, so that each tic is registered on the chart and helps in the appropriate buying or selling decision.


Forex charts are available in almost every platform. These charts are structured as you might expect with history and real time trades. The typical chart will offer a variety of time intervals. You can often select from a drop down menu. Some charts are updated in real time, so that each tic is registered on the chart and helps in the appropriate buying or selling decision.

An important feature to understand about the movement of transaction prices is that within a range, they tend to move up and down. The longer the time interval, the broader the range that can be expected. You can extend the time interval on the charts to look at the history in five minute intervals or 24 hour intervals.

This fact leads to some interesting combinations. If you choose a fairly high volume pair of currencies to track, such as the US dollar and the Euro, the five second chart may show that the pair has a strong upward trend. If you extend the time interval to five minutes, you could see a price level that is near the bottom of a five minute range. This information helps you to decide whether you buy or sell the pair.

You could sell the pair and plan on buying it back within a matters of seconds. On the other hand, you could buy the pair and wait for the price of the pair to move upward in a somewhat longer time frame. Some traders do not make a buy or sell decision unless at least three of the time indicators are showing signs of a reversal in trend.

If the volume on a particular currency pair is low, you will probably plan on a longer time interval in order to determine where the price is within the range. A longer period will be necessary in order to obtain the profit from a successful trade. You always should know which interval you are charting in order to maximize the timing.

Because the Forex market operates 24 hours per day, you can use the time intervals in the charts to gauge where the volume and direction of the pair is likely to go. The busiest times with the highest volume are during business hours in the major financial centers around the globe. These include the United States, London, Japan and Australia.

Using various time intervals when watching the Forex charts helps traders to make good decisions. Choose a platform that allows you the flexibility to view different times. This improves your ability to see speed and direction of currency prices.

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