This type of chart is the easiest to chart longer term time frames. The Line chart is easily plotted by marking each successive period’s closing value with a dot, and then simply joining them together to form a rising, falling or static line on different forex pairs. This type of line chart can very useful in identifying trend in a clear manner and there can be little confusion when analyzing strength and weakness in the price action. It is the easiest chart to follow for the new forex trader.
The chart example below, can also easily identify areas of price support and resistance for making a trade, these areas often offer trades with low risk and potentially high profit capabilities. This can be useful for the longer term trader, the Line chart can also be the ideal tool for cross market analysis studies, when you want to compare relative strength and price action analysis across multiple instruments or currency pairs.
When your goal is tied to what makes money then learning how to trade line charts is important. Staying with the trend and using stop losses will help keep money in your trading account. When trading Forex majors against the USD, it’s a good idea to make sure the USD is into an opposing level, to the dollar index.
If your broker has a chart of the dollar index then if you are trading longer term it is important to watch where the dollar index is trending. Using a line chart on the dollar indexes will help you make better and less risky trades in the forex markets. Remember a line chart or line graph is a type of graph, which displays information as a series of data points connected by straight line segments. It is a basic type of chart common in many fields. Other popular forex trading charts include, bar charts, candlestick charts and point and figure charts.How to trade Forex line charts
Do you have statistical proof to what times of the day are your strategies having a higher degree of profits or losses?How to trade Forex line charts