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Using Price Action Charts in Forex Trading

by

Linn Spann

Price action charts are pretty much a staple when it comes to trading foreign currencies. They are charts that look at the market and provide you an idea of any resistance or support, as well as other changes to the currency or currencies that you are trading. They are an especially good tool for beginner traders and are easier to read than charts with indicators. This charts on their own work pretty well, though a lot of traders also use indicators on their charts. Let\’s take a look at using the price action chart and how to use it in the Forex market.

A price action chart should be started off stripped to the bare essentials. That means no indicators and no hoard of multiple lines on one chart, just regular price action chart. This chart on its own can actually show you potential trends which are about to happen in the market so in order to correctly read what it\’s telling you, you have to be able to clearly see the data.

When you have done that, you can set up what are known as price action setups. These setups are actually trend indicators. They will help grab your attention when something needs to be changed and essentially act as your signal to buy and sell. The great advantage of these charts, other than the fact that they are an accurate indicator of the market forces at work, they also provide a much cleaner interface than looking at multiple chart indicators.

Price charts with the right set up are really all you need in order to accurately be able to read and comprehend market trends. Rather than having messy charts that throw you off track, price action charts help make it easier to read the consequences of the market forces at work.

Linn writes for

2ndSkiesForex

. At

2nd Skies Forex

, Chris Capre offers his unique Institutional and Retail market experience teaching Price Action & Ichimoku Strategies to trade the market successfully.

Article Source:

ArticleRich.com