The truth is that best Forex charts are the ones that end up with a profitable trade. As such, traders use them to find tops and bottoms. From the very beginning of the adventure with Forex, we are bombarded with different systems.
MT4 Trading Guide
You may use BB period 72 at H1 chart 3 x 24 hours , or you could also use Donchian Channel with same 72 period too.. Just load the TMA indicator with default to H1 chart , then change the time frame to and Half Period to 3, and you can set interpolate to false if you like the stepped version. Thank you Kiads mak could you please tell me the values you use to get that image? To understand how Zig Zag work , we should understand Dow Theory.
Please see the attached picture… This was a bad day of mine by the way. Kiads, can you elaborate on this? Viewing 25 posts - 1 through 25 of 46 total. So, Enjoy and Have a nice week end. You must be logged in to view attached files. Intuition, Experiences and Common sense.. Install Multiple Servers Mutliple MT4 Servers allow you to choose which broker can provide your platform data and which provider you would like to trade through all without having to have multiple platforms installed.
Create Indicators Custom indicators are the ultimate benefit of trading vis MT4 platforms. You can create indicators that are completely custom to your needs. Add An Expert Advisor Expert Advisors allow you totrade your systems automatically allowing you time to research and create new trading methods.
Recover A Deleted Chart Don't worry all is not lost. If your platform is set up correctly lost charts will be a thing of the past. Latest Popular Comments Tags. TradeMiner Review June 6, Top 5 Pages May 7, Forex Trade Miner Test April 23, Is it time to switch to MT5 yet? Com Trial Review 54 Comments. Adding indicators to Metatrader 4 28 Comments. Dax Mechanical Trading System 20 Comments. For example, consider a morning star on the monthly chart. It has far bigger consequences that one on the hourly time frame.
But, even more important, the patterns one can use are everything a trader needs. For it is these patterns that make a candlestick chart better than a line chart. Or an OHLC bars chart. Japanese candlestick charting shows reversal conditions. They allow picking a top or a bottom. What more to ask from a pattern? What more it is to technical analysis? Because of that, a candlestick chart is the most favored type of chart today. First, they allow for the understanding price.
They put an order in the way the price of a security moves. Second, they show human nature tendency in trading. To be able to spot reversals, one needs to understand crowd behavior.
If you know how to read candlestick charts, you know how to interpret crowd behavior. All these make a candlestick chart an important pillar of technical analysis. Only this time, instead of OHLC bars, candles appear. Spot the difference between the two? The price activity looks to be clearly defined on a candlestick chart.
The line in a line chart connects different points. But can a simple line be part of the technical analysis? Moreover, they want to see price action in the clearest possible way. However, a line chart has a catch. That makes a line chart interesting! Why looking at a candlestick chart or OHLC bars chart, when a simple line shows the closing? Or, the way price goes. When the line rises, the trend is bullish. When it falls, bears are in control.
After a candlestick chart and an OHLC bars chart, it is time for a line chart. Between the three charts, the line chart is the emptiest. It is the purest form to show price activity. Take a look above. Only connecting the closing values of a period, the head and shoulders is more visible. Forex charts that use only such a line have their limitations. While it keeps things simple, it misses a lot of price action. The same is valid with other technical analysis concepts and tools.
In the end, it is up to the trader. Or, what are the best Forex charts. Others like a candlestick chart because of the candlestick reversal patterns.
Some other traders use OHLC bars to get away from candlesticks. They interpret only the opening and the closing prices. The truth is that best Forex charts are the ones that end up with a profitable trade. The ones that give the future market direction. To form an educated guess about the future price action to come.
However, the technical analysis starts from a chart. Therefore, understanding the basic types of charts, their advantages, and disadvantages, is a must for any Forex trader. During his bachelor and master programs, Damyan has been working in the area of financial markets as a Market Analyst and Forex Writer. He is the author of thousands of educational and analytical articles for traders.
When being in bachelor school, he represented his university in the National Forex Trading Competition for students in Bulgaria and got the first place among other traders. He was awarded a cup and a certificate at an official ceremony in his university. After all, the information is the same. Well, yes and no. Technical analysis changed and will continue to change.
Why traders use a line chart. The most important candlestick chart patterns. What makes the best Forex charts. More exactly, it refers to the values of a predefined period of time. A chart shows the price movement. That is, the price movement of a security. This is technical analysis. Or, its starting point. For, this is why traders need Forex charts.
To analyze a market. The time frame tells it. It shows the time of the bar. Or, a candle, if you use a candlestick chart. Now you understand what a bar is. But still, what is OHLC? As mentioned previously, OHLC stands for open-high-low-close. It shows the highest value in a bar.