Forex Trading Using Charting, Markets and Drawing Tools

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March 16, 2012
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Forex Trading Using Charting, Markets and Drawing Tools

NEW YORK, March 16, 2012/PRNewswire/ --

    FX trading [http://www.fxsolutions.com/trade-forex ] tools can prove highly valuable
to a wide range of traders looking to assess market movements. Known to traders as foreign
exchange, forex, retail forex or simply FX, it is one of the largest and most widely
traded markets in the world.

    Through FX Solutions, traders can speculate on price movements in the global currency
market 24-hours a day from Sunday evening through to Friday night.

    Here we consider how traders utilize charting and market analysis tools whilst trading
forex through a platform such as MetaTrader 4
[http://fxsolutions.com/ways-to-trade/mt4.aspx ].

    FX Charting Tools

    Through your forex trading platform, you can view price trends through a selection of
charts with the added support of various timeframes from minutes to months.

    Such insights as these can allow for a thorough research into your chosen currency,
supplementing your trading strategy and risk management.

    Through charts you can also access a large number of technical indicators, tools and
line studies to help shape your strategy.

    You can also test your trading strategies on historical data by plotting chart points
where trades come in and out.

    FX Market Analysis

    Analysis typically takes on two forms when trading; technical and fundamental.

    Technical analysis ignores fundamental factors, such as news and economic conditions,
and is applied only to the price movement of a particular market and is a hugely popular
means of decision making in the FX marketplace. The methods of utilizing technical
analysis are many and varied.

    As mentioned above, fundamental analysis focuses on news and economic conditions,
specifically looking at reports and significant events, such as natural disasters.

    Historical data - as mentioned in the section above - may be assessed as to a
particular market/currency prior to placing a trade.

    Drawing Tools

    Technical drawing tools [http://www.fxsolutions.com/learn-to-trade ] aim to identify
areas of importance, including support and resistance levels.

    Trend lines, whether diagonal or horizontal, are the most basic drawing tools and can
be a simple and effective way of assessing the direction of trends in the market.

    An upward straight line is drawn by connecting a minimum of two successive lows, but
preferably more.

    Each successive point is commonly higher than the previous one, but this is not always
the case. The journey of the line helps determine the journey a market may take.

    An upward trend is a method for determining potential support lines and levels.

    Summary

    Trading forex [http://fxsolutions.com/trade-forex/how-to-trade-forex.aspx ] with a
trading platform offers you a range of features including access to market analysis and
charting tools.

    It's important to remember that FX trading involves substantial risk and is not
suitable for all investors.

    About FX Solutions:

    FX Solutions, LLC is a leading foreign exchange broker with a focus on advanced
trading technologies, transparency of transaction and unparalleled customer service. FX
Solutions serves retail clients institutional trading partners and introducing brokers in
over 100 countries.

    For more information, please visit http://www.fxsolutions.com

Source: FX Solutions

Press Contact: Matthew Sargeant, Marketing - Americas, +1-201-345-2210

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