Forex live chart is a necessity if you are planning to do your own market analysis. This chart is created at once by using current market data, so you can have actual data on market movement during that period. Actually, it is a very handy tool to have even if you don't do your own market analysis.

First of all, you have to pick the currency pair that you want to analyze; it usually comes in the form of a drop down menu. Once you find the one that you want, choose the chart type, it commonly comes in four forms: Line, Bar, Candlestick, and Table. If you are a novice, 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 a bar chart, each 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. There are two horizontal bars for each vertical one; one on the left side and one on the right side. The left bar represent the opening price and the right bar represent the closing price for that time frame. 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:

Understanding Support and Resistance

The market movement is unpredictable and it can goes anywhere at any time. 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.

Instance:

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

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

These support and resistance data can be used to decide entry point. An orthodox approach is buy at support and sell at resistance. More advanced strategies like sell at higher price or buying at resistance breakout are also applicable; you just need the right time, currency pair, and trading system.

Note: Breakout is when the price move through the support or resistance line.

Indicators

A good charting tool will at least have the feature to add various indicators. Indicator is a mathematical calculation according to prices that can be used to help you make decision. For example: MVA indicator can show you the average price for a particular period, EMA present you the weighted price calculation for a certain period, etc.

There are various ways to use a forex live chart in order to boost your trading and learning the basic of using it is a great beginning for your career as a trader.