In forex trading, charts are your window into the market’s soul. They tell the story of where the market has been, where it is now, and if you know how to read them, where it might be going next. At Geldex Forex Academy, we believe reading charts is a skill every trader can master with the right guidance. Once you understand them, you’ll see opportunities that others miss.
Types of Forex Charts
1. Line Charts
Best For: A simple, bird’s-eye view of price movement.
How It Works: Plots closing prices over a period of time, connecting them with a line.
Why It’s Useful: Great for identifying overall trends without getting lost in detail.
2. Bar Charts
Best For: Traders who want more information than a line chart offers.
How It Works: Each bar shows the opening, closing, highest, and lowest price in a set time frame.
Why It’s Useful: Helps spot volatility and price ranges.
3. Candlestick Charts
Best For: Most traders, from beginners to pros.
How It Works: Similar to bar charts, but uses “candles” with bodies and wicks to show open, close, high, and low.
Why It’s Useful: Makes patterns easy to spot, helping traders make quick, informed decisions.
Key Indicators for Chart Analysis
Moving Averages
Smooth out price data to show trends over time.
Example: A 50-day moving average can reveal medium-term momentum.
Relative Strength Index (RSI)
Measures if a currency pair is overbought or oversold.
Example: RSI above 70 = potentially overbought, below 30 = potentially oversold.
MACD (Moving Average Convergence Divergence)
Shows momentum changes and potential trend reversals.
Example: When the MACD line crosses above the signal line, it may indicate a buy signal.
The Power of Price Action
Indicators are helpful, but price action, the movement of price itself is the purest form of analysis.
By learning to identify patterns like head and shoulders, double tops, and flags, you can make trading decisions without a cluttered chart.
The Geldex Approach
We teach you:
How to choose the right chart type for your trading style.
Which indicators complement your strategy without overwhelming it.
How to read patterns like a seasoned pro.
By the time you finish our training, chart reading will feel natural, almost like a second language.
A chart is more than just lines and candles, it’s a story of market psychology, supply and demand, and trader behavior.
Master the charts. Master the market
Geldex Academy
Geldex Academy
Geldex Academy