Now this chart won't look the same for you unless you are using the broker I am using, but the basics are all the same and you'll see them.1. Currencies - Pretty straight forward. You can pick different currency pairs and see what's going on. Think of these as if they were like stocks. You can pick ebay stock or switch to Apple stocks.. whatever, and see whats going on with their prices.
2. Time Frame - Usually you'll see 15min charts, 5min charts, 1 hour charts.. Whatever time frame you choose, that means each bar you see on the chart (those little green and red bars) represents that amount time.
In other words, if you pick 15min charts, then each one of those red and green bar represents 15min minutes. So 4 bars represents.. 1 hour.
3. Prices - The price the currency pair is trading at. How are these prices calculated? Who cares.. all you need to know is sell if you think the price is going down.. and buy if you think the price is going up.
Now lets look at what the hell those little green and red bars mean. The two most popular type of charts are the Bar charts and the Candlestick charts. I personally use candle stick because they just look better. Either way they both tell the same story.
Bar Chart:
Candlestick Chart:
What do those little green/red bars mean? Let's look at the candle stick chart first.
Let's pretend that you are looking at the 1 hour charts. So each of these bars represent 1 hour. The green bar shows in the beginning of the 1 hour period the price started at 1.0404 area (open) and then at the end of that hour it ended at 1.0415 (close). The open and close part of the candlestick represent what the price started at and what the price ended at.
The long wick on each end shows the range of the price movement within the hour. So looking at that picture, that candlestick will tell us that in the beginning of the hour the price started at 1.0404.. then it closed at 1.0415 at the end of the hour. An within that hour the price moved as high as 1.0425 and as low as 1.0396.
If we look the red candlestick, it is pretty much the same thing except for the fact that the open is at the top and the close is at the bottom. In the picture shown below the price started at 1.4899 area and then ended at 1.4862 area.
A bar chart is pretty similiar to a candlestick except for the way it shows the open and close.
The opening price is shown by the horizontal line of the left side.. and the close price is shown by the horizontal line of the right side.
I tried to explain this as best as I can and hopefully it all makes sense. If you have any questions let me know just email me or something.
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