Forex trading is a very popular form of trading and there are literally tens of thousands of traders at any given moment busy trying to make a profit on the forex markets. Most of these traders use live forex charts to guide their trading decisions.
When it comes to forex price feeds, you get broadly speaking two types. The one is a delayed feed, where prices are only updated every fifteen minutes, every hour or even on a daily basis. The other is a live feed, where prices are updated in real time.
For a swing trader, working in a time frame of a few weeks, live charts are not of crucial importance. Prices with a one hour delay will work perfectly for them most of them. Day traders, who have to close all their trading positions at the end of the day, have no other option but to make use of live charts.
How it works is that the trader would normally buy a live price feed from a supplier, which will then be imported into his charting software. Depending on which software package he uses, he will then be able to see charts indicating price movements and various technical indicators at the click of a button.
Many forex traders make use of technical indicators to help them make trading decisions. Most of them will find it impossible to trade without a package able to display indicators such as moving averages, Bollinger bands and the RSI.
When a trader makes use of live forex charts, all these indicators can of course also be charted in real time. He can therefore immediately see when the price of a currency rises above the moving average, or when the RSI starts indicating an oversold position. These are all trading signals used by many experienced traders to make buying and selling decisions.
Often a professional trader would use more than one indicator to help him make a final decision. He could for example only execute a trade if both the moving average and the RSI signal a potential increase in the price of a currency. Similarly he could wait for both the RSI and the MACD to signal a declining market before closing his trade.
Live forex charts therefore form an essential part of the arsenal of the professional forex trader. Forex markets move fast, money is being made and lost in seconds and timely information is the name of the game.
When it comes to forex price feeds, you get broadly speaking two types. The one is a delayed feed, where prices are only updated every fifteen minutes, every hour or even on a daily basis. The other is a live feed, where prices are updated in real time.
For a swing trader, working in a time frame of a few weeks, live charts are not of crucial importance. Prices with a one hour delay will work perfectly for them most of them. Day traders, who have to close all their trading positions at the end of the day, have no other option but to make use of live charts.
How it works is that the trader would normally buy a live price feed from a supplier, which will then be imported into his charting software. Depending on which software package he uses, he will then be able to see charts indicating price movements and various technical indicators at the click of a button.
Many forex traders make use of technical indicators to help them make trading decisions. Most of them will find it impossible to trade without a package able to display indicators such as moving averages, Bollinger bands and the RSI.
When a trader makes use of live forex charts, all these indicators can of course also be charted in real time. He can therefore immediately see when the price of a currency rises above the moving average, or when the RSI starts indicating an oversold position. These are all trading signals used by many experienced traders to make buying and selling decisions.
Often a professional trader would use more than one indicator to help him make a final decision. He could for example only execute a trade if both the moving average and the RSI signal a potential increase in the price of a currency. Similarly he could wait for both the RSI and the MACD to signal a declining market before closing his trade.
Live forex charts therefore form an essential part of the arsenal of the professional forex trader. Forex markets move fast, money is being made and lost in seconds and timely information is the name of the game.
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