PRN: Forex Trading Using Charting, Markets and Drawing Tools
Forex Trading Using Charting, Markets and Drawing Tools [16-March-2012] NEW YORK, March 16, 2012 /PRNewswire/ -- FX trading tools can prove highly valuable to a wide range of traders looking to assess market movements.
Forex Trading Using Charting, Markets and Drawing Tools
NEW YORK, March 16, 2012 /PRNewswire/ --
FX trading tools can prove highly valuable to a wide range of traders looking to assess market movements. Known to traders as foreign exchange, forex, retail forex or simply FX, it is one of the largest and most widely traded markets in the world.
Through FX Solutions, traders can speculate on price movements in the global currency market 24-hours a day from Sunday evening through to Friday night.
Here we consider how traders utilize charting and market analysis tools whilst trading forex through a platform such as MetaTrader 4.
FX Charting Tools
Through your forex trading platform, you can view price trends through a selection of charts with the added support of various timeframes from minutes to months.
Such insights as these can allow for a thorough research into your chosen currency, supplementing your trading strategy and risk management.
Through charts you can also access a large number of technical indicators, tools and line studies to help shape your strategy.
You can also test your trading strategies on historical data by plotting chart points where trades come in and out.
FX Market Analysis
Analysis typically takes on two forms when trading; technical and fundamental.
Technical analysis ignores fundamental factors, such as news and economic conditions, and is applied only to the price movement of a particular market and is a hugely popular means of decision making in the FX marketplace. The methods of utilizing technical analysis are many and varied.
As mentioned above, fundamental analysis focuses on news and economic conditions, specifically looking at reports and significant events, such as natural disasters.
Historical data - as mentioned in the section above - may be assessed as to a particular market/currency prior to placing a trade.
Technical drawing tools aim to identify areas of importance, including support and resistance levels.
Trend lines, whether diagonal or horizontal, are the most basic drawing tools and can be a simple and effective way of assessing the direction of trends in the market.
An upward straight line is drawn by connecting a minimum of two successive lows, but preferably more.
Each successive point is commonly higher than the previous one, but this is not always the case. The journey of the line helps determine the journey a market may take.
Â An upward trend is a method for determining potential support lines and levels.
Trading forex with a trading platform offers you a range of features including access to market analysis and charting tools.
It's important to remember that FX trading involves substantial risk and is not suitable for all investors.
About FX Solutions:
FX Solutions, LLC is a leading foreign exchange broker with a focus on advanced trading technologies, transparency of transaction and unparalleled customer service. FX Solutions serves retail clients institutional trading partners and introducing brokers in over 100 countries.
For more information, please visit http://www.fxsolutions.com/