3 Super Tips For Using Your Free Forex Chart

The foreign exchange market is a great way to make money from home. Unless you intend to gamble (and lose), the usage of forex charts can be very important to making good trading decisions. Although there are other forex trading strategies available, a large number of currency traders use charts as their basis to decide the right time to buy and sell. These charts indicate the currency prices and the trend – whether they are going up or down.

Although there are various charting software available, you can often take advantage of a free forex chart that you will automatically receive access to once you open a trading account with most good brokers. Charts are also available with a forex demo account. Let’s take a look at some of the uses from your free forex chart.

Practice

A free forex chart is a great tool for practice. That is why good brokers often offer such charts with a forex demo account. You can make use of these charts when going through a forex trading course and practicing new trading strategies. This will help you to make good trading decisions and earn more profit in a real trading scenario. This is the reason that many traders stress on the accuracy of these charts. Practicing on an inaccurate chart can ruin your chances of profit in a live environment. So, make sure that the free charting software that you are entitled to is accurate enough to help you get the desired practice.

Technical Analysis

The majority of traders make use of their free charting application for technical analysis which means making trading decisions based on the currency prices reflected on the charts. Most free charts have their prices updated automatically and you will know as soon as there is a change in the figures. This is the reason that the accuracy of a forex chart is so much stressed by many professionals. Remember, one wrong update can damage your trading decision.

Fundamental Analysis

There are traders who use the graphs and charts provided in a free forex chart to understand the economical or political mechanisms influencing such changes. Even here, accuracy of charts is very important. Wrong figures may force one to reach wrong conclusions. Keep in mind that even a free forex chart should have the option of multiple time frames which you should be able to set according to your needs.