Forex trading is an online trading opportunity to BUY and SELL the currencies of various countries. Since the International Trade and commerce are an Integral part of business, the need for Forex trading arises and, thus, we have a world of Online Forex Trading where we aim to make some profits for ourselves.
Introduction to Forex trading
I was introduced to the world of Forex trading by chance as I was looking for making some money on the Internet. It is a known fact that the world of online income is full of scam. I was also cheated by them and lost some funds.
Then I got to know about doing Forex trading which at the very first instance looked technical to me since I am a qualified Software Engineer by education.
With some help, I was able to execute my first trades and then I learned how it worked and what should be done to achieve some good income from trading.
My first experience was based on the data that I had collected from the EBooks. It gave me some information about the workings, the Forex markets structure and principles, but then it turned out that they gave me only theoretical knowledge which was good for basic understanding but not sufficient to make Profits.
Ultimately I started losing my trades and money and all I was getting was a loss. There was no HOPE, until one day I looked at the CHARTS.
This was the PERSPECTIVE that changed my FOREX Trading Experience forever.
Trading with CHARTS
There are various Time Frames for these Charts. They are as follows:
- M1 = 1 minute updated charts
- M5 = 5 minute updated charts
- M15 = 15 minute updated charts
- H1 = 1 hour updated charts
- H4 = 4 hour updated charts
- D1 = 1 day updated charts
- W1 = 1 week updated charts
- MN = 1 month updated charts
All the above Time Frames are self – explanatory and will indicate the different types of Charts for a chosen Currency pair and all TRENDS are clearly visible when looking at them.
Example 1. Charts M1 for EURUSD
Example 2. Charts for M5 for EURUSD
Example 3. Charts for M15 for EURUSD
Example 4. Charts for M30 for EURUSD
Example 5. Charts for H1 for EURUSD
Example 6. Charts for H4 for EURUSD
Example 7. Charts for D1 for EURUSD
Example 8. Charts for W1 for EURUSD
Example 9. Charts for MN for EURUSD
Note: In the above examples I have used the LINE CHARTS as they are the simplest ones and are easy to learn and understand.
TRENDS with CHARTS
As you COMPARE the different types of CHARTS with the same Currency pair and period, you will realize that they offer you a market PERSPECTIVE to see what is going to happen in the FUTURE. All you have to do is to be able to STUDY them.
This is what I’ve done. Now almost 90% of the trades are CORRECT as I am trading with the already established market trends. I get correct timings and it is very important for making profits from trades.
Looking for TRENDS
Compare the M1 and M15 Charts
Looking at the TRENDS at the M1 and M5 Charts we can easily see that the TRADE should be between 15 minutes and 1 hrs.
Compare M15 and M30 Charts
Looking at the TRENDS at the M5 and M30 Charts we can easily see that the TRADE should be between 1hrs and 3 hrs.
Compare M30 Charts and H1 Charts
Looking at the TRENDS at the M30 and H1 Charts we can easily see that the TRADE should be between 2hrs and 6 hrs.
Compare H1 Charts and H4 Charts
Looking at the TRENDS at the H1 and H4 Charts we can easily see that the TRADE should be between 3hrs and 12 hrs.
Compare H4 Charts and D1 Charts
Looking at the TRENDS at the H4 and D1 Charts we can easily see that the TRADE should be between 6hrs and 24 hrs.
Compare D1 Charts and W1 Charts
Looking at the TRENDS at the D1 and W1 Charts we can easily see that the TRADE should be between 12hrs and 48 hrs.
Compare W1 Charts and MN Charts
Looking at the TRENDS at the W1 and MN Charts we can easily see that the TRADE should be between 1day and 7 days.
I hope that this Forex Article will HELP EDUCATE Forex Newbies about the Present and Persistent Market Trends, as well as eventually help them make their trading profitable.
The article is written by Neeraj Saxena and is participating in the Forex Article Contest. Good luck!