Forex live chart is a necessity if you are planning to do your own market analysis. 'Live' here means the service that provide it will use current actual market data to create the chart. Basically, it is a very useful information tool to have even if you don't do your own analysis.

The first step is to choose the currency pair to analyze from the drop down menu or other interface. After you find the one that you need, choose the chart type, it usually comes in four types: Line, Bar, Candlestick, and Table. If you are a beginner, I suggest to start with a Bar type. Once you select the type, choose a time frame such as one minute, five minutes, daily, weekly, etc.

In the bar chart, every vertical bar that you see represents a time frame. The top of the bar is the highest price and the bottom of the bar is the lowest price during that particular time frame. For each vertical bar, there are two horizontal bars, one to the left and the other to the right. The bar at the left is the opening price while the bar at the right is the closing price for that specific period of time. Tips: Use the zoom function to see it clearly.

If you are going to use forex live chart, you should at least know these things:

About Support and Resistance

The market volatility can bring it anywhere and no one can predict it 100%. But based on historical data, there are some condition where the price doesn’t exceed or below a certain price for a period of time.

Example:

-From July to December, the EUR/USD prices never exceed 1.645, that means 1.645 is the resistance for EUR/USD in that time period.

- From January to May, the USD/JPY prices never fall under 90.070, that mean 90.70 is the support for USD/JPY during that period.

Entry and exit point can be decided based on these support and resistance data. A conservative strategy is buy at support and sell at resistance. There is also more advanced strategy such as buying at resistance breakout and sell at higher price; it is all depend on the currency, circumstances, and your trading system.

Note: A time when the price has moved passed support or resistance line is called breakout.

Indicators

A good chart software also allows you to add various indicators. Indicator is a mathematical calculation based on prices which you can use to help you make decision. For instance: MVA indicator can present you the average price for a certain period, EMA present you the weighted price calculation for a selected period, and so on.

Forex live chart can be used in various other ways to support a trader and understanding the basic function is a good start for your trader career.

Author's Bio: 

Charting is only a part of currency trading, learn other important functions that you must possess in software for technical analysis purpose.Also, take a look at how you can actually find a profitable system in forex trading systems.