Forex trading has become increasingly popular over the years, and with the advent of mobile technology, it is now possible to trade forex on-the-go using forex trading apps. One of the most commonly used tools in forex trading is the forex app bar chart. In this article, we will explain how to read forex app bar charts and how to use them to make informed trading decisions.
What is a Forex App Bar Chart?
A forex app bar chart is a graphical representation of the price movements of a currency pair over a specific period of time. It is called a bar chart because each bar represents a specific time period, usually measured in minutes, hours, or days. The chart is made up of vertical bars that indicate the high, low, opening, and closing prices of the currency pair for each time period.
How to Read a Forex App Bar Chart?
Reading a forex app bar chart can be a bit overwhelming for beginners, but it is not as complicated as it might seem. Here are the steps to follow when reading a forex app bar chart:
Step 1: Identify the Time Period
The first step is to identify the time period represented by each vertical bar. This is usually indicated at the bottom of the chart. For example, if the time period is 1 hour, each bar represents the price movement of the currency pair over a 1-hour period.
Step 2: Interpret the Bar
Each vertical bar on the chart represents the price movement of the currency pair during the time period indicated. The top of the bar represents the highest price of the currency pair during that time period, while the bottom of the bar represents the lowest price. The opening price is indicated by a small horizontal line on the left side of the bar, while the closing price is indicated by a small horizontal line on the right side of the bar.
Step 3: Analyze the Chart
Once you have identified the time period and interpreted the bars, the next step is to analyze the chart. This involves looking for patterns or trends that can help you make informed trading decisions. Some of the patterns and trends to look out for include:
– Upward trend: This is indicated by a series of bars with higher closing prices than opening prices. It suggests that the currency pair is gaining value and is a good time to buy.
– Downward trend: This is indicated by a series of bars with lower closing prices than opening prices. It suggests that the currency pair is losing value and is a good time to sell.
– Sideways trend: This is indicated by a series of bars with similar opening and closing prices. It suggests that the currency pair is neither gaining nor losing value and is best to wait for a clear trend before making any trading decisions.
Conclusion
Forex app bar charts are a powerful tool for analyzing the price movements of currency pairs and making informed trading decisions. By following the steps outlined above, you should be able to read and interpret forex app bar charts with ease. However, it is important to note that forex trading is a highly volatile market and requires a lot of knowledge, skill, and practice to become successful. Therefore, it is advisable to seek the advice of a professional forex trader before making any significant trading decisions.
