What Should You Look for in Live Currency Trading Charts?

What Should You Look for in Live Currency Trading Charts?

Look for charts that are easy to understand, display a variety of currency pairs and trading periods, have access to historical data and have the ability to automate trades, according to DailyFX, a currency trading service. Live charts show currency or foreign exchange (forex) markets in real time.

Traders utilize live currency trading charts by having a firm grasp of currency or forex trading, including currency pairs, market analysis and placing trades.

Investors should be familiar with the different types of charts. One of the most common charts is the candlestick. It gives traders several pieces of information, like the opening and closing price for currency pairs.

DailyFX recommends choosing charts that contain a variety of time frames or trading periods. Trading periods should be available in 10-, 15- or 30-minute increments. Other useful trading periods include the hourly, daily, weekly or monthly periods. Additionally, Investopedia says charts should show the most commonly traded currency pairs, like the U.S. dollar (USD) and the European Union euro (EUR). Charts show the pair as USD/EUR.

Finally, charts should provide historical data and allow investors to place trades using automation. Historical data shows cyclical market patterns, and automation allows trading at any time in any market.