The graphical display of the exchange rate in Forex is called the chart. Forex charts make it easier for the reader to interpret and understand numerical data. Charts also help in researching the condition of a market by analyzing the currency pairs together with various indicators.
When reading chart, keep in mind these
easy to understand rules
1. See if prices are rising and volume is increasing, prices will continue to rise. The uptrend is being confirmed.
2. If prices are rising but volume is decreasing, the uptrend is losing momentum and may be near the end.
3. Note that if prices are falling and volume is increasing, prices will continue to fall.
4. If prices are falling and volume is decreasing, the downtrend is losing momentum and may be near the end