Posted by forex at 1:51 AM
Read our previous post
1. Set the chart time frame. Day traders typically use intraday price charts with trade intervals set anywhere from one to 30 minutes.
2. Choose price measurement type. Japanese candlestick charts generally work better for forex traders, as they allow analysts to see the open, close, high and low information for each price interval.
3. Measure price support. Use your chart-drawing tools and draw a line connecting price lows on the chart. This will give you an idea where buyers have recently supported the price.
4. Measure price resistance. Draw a line on your chart connecting price tops. This will help you determine the price area where a supply of sellers resides.
5. Determine whether there is a price trend or a trading range. If the price support line you drew is generally angled higher from left to right, it is safe to assume that the price is in an uptrend. If the support line is flat, the currency pair is likely randomly trading in a range.