21:38As a guru of the Forex industry read the quotes of currencies
As a guru of the Forex industry read the quotes of currencies
Profitable trading depends on the trader's ability to respond quickly to trend movement
Banks and large brokers conduct daily n-th number of transactions through Forex. It is for this reason that currency quotes are characterized by rapid dynamics, as they are updated almost without stopping. Despite the fact that the average trader has almost no influence on the movement of prices, the ability to read and analyze the quotation table will allow the investor to control the flow, rather than submissively go with the flow.
Profitable trading depends on the ability of the trader to respond quickly to the movement of the trend, waiting for that very deal. However, without basic skills, the trading process of the market participant will be conducted on the principle of "lucky - no luck". To make it easier to work with the currency on the market, you first need to understand what the quotes Ask, Bid and Spread are.
Currency quotation and how to understand it?
So, the currency quote is the price of one monetary unit, expressed through the second (the national currency of another state). Imagine for a moment that the first currency that is paired with the second is the commodity. In this case, the second will be the price of this product. On the example of the euro / dollar (EUR / USD), the commodity here is the euro (base currency), so it will be sold at the dollar exchange rate (quoted currency).
The offer of the buyer and the seller on Forex
In the model of exchange relations between the buyer and the seller, the optimal amount that the buyer can give for the currency is the "Bid". At the same time, "Ask" is the price of the seller (the amount by which the currency is sold). The spread will reflect the price difference between these indicators. Earnings of any honest broker consist of customer-paid spreads, so the best solution for market operators is to provide minimum spreads, as brokerage company HQBroker did at one time.
Where do quotations live?
Returning to quotes, beginners often have no idea how to use them. Modern technologies allow traders to view quotes on quotations in online mode through the official website of their broker. At its site, the trader receives a kind of table with dynamic changes in trading indicators. For example, the resource hqbroker.com displays on the user's request a table with the assets it needs at the moment.
Participants in the trading session can see the broadcast on the most popular world currency pairs. Many financial sites offer users interactive and streaming charts not only for Forex-tools, but also for stocks, indices, futures and other assets.
TOP-5 tips for reading charts with currency pairs
Often the decision-making during the next trading session depends on the efforts made.
Despite the huge number of techniques that contribute to profitable trade, seasoned traders advise to adhere to five rules:
1. Choose a long position during the purchase of a pair of currencies only if by analysis it was determined that the base currency will increase with respect to the quoted currency.
2. Establish an accurate time frame (timeframe) for analysis and save them, since the choice for entering the market must be made without deviating from the established period.
3. Understand that the time indicated under the schedule corresponds to a specific time zone (charts are drawn for a specific exchange time).
4. Buying currency remember that the price charts sometimes reflect the Bid price without Ask (take into account the bid price (ask) when buying, because the purchase is made at the Ask price, which is slightly lower than its neighbor).
5. Check whether the component schedule of the program differs from others on the basis of the time of opening or closing the candle.
Experienced traders advise beginners in the course of working with the terminal to check the availability of short-term intervals on the charts of currency pairs. Ideally, candles on the chart are formed in such a way that the correct hours / minutes are indicated on them. Many use systems that allow you to visualize the movement of prices, but not infrequently there are times when the program may not take into account the time period, which does not allow the trader to collect and analyze the data.
All the above methods do not guarantee a 100% prediction of the movement of quotes, however, based on these tips, you can get enough data to make your trade a little more predictable.
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