Futures Trading Charts

To the uninitiated in the world of foreign exchange trading, the thought of having to look at and interpret charts could send you flying to the door and swearing the industry altogether. The mix of numbers and factoids on the charts can seem intimidating at first, especially you're not into numbers, but when you really get down to the basics, it's really not as difficult as it looks.
Of course, to be able to read a futures trading chart correctly, you have to have a firm grasp on the basic concepts surrounding foreign exchange trade. Without this knowledge, you will not be able to pass interpretations and assessments on the lines and figures that are showcased in forex charts.
There are three basic charts to track when studying the futures market: The hourly chart, which contains information for the past twelve days, the fifteen-minute forex futures trading chart, which contains data for the past three days, and the five-minute chart, which holds 24-hours worth of financial information and updates.
Experts suggest that you first take a look at hourly forex charts to have a general idea of how the market has performed for the past several days. This will give you a chance to track trends and resistance levels of every opening day.
Once you have done so, take a look at the fifteen-minute futures trading charts to be able to assess what trends are mostly likely to continue for today or the next days.
Studying the five-minute chart last will then allow you to find out the prevailing buy and ask prices, as well as other details you might want to figure out, like the market's behavior at the start of today's trade. From the five minute chart you can also weed out minor trends based on present occurences.
When studying futures trading charts, it is imperative that you take note of the time posted. If you have a world clock, coordinate it with the time posted on the chart so you will have a better idea of where your investments are at a particular time frame.
Some charts are better updated than others, and it will do well if you access charts that are changed in real time, because, as you may well know, seconds of delays in trading can sometimes spell major wins or losses.
In addition, you should also remember that the bid price is different from the ask price. The bid price is the quoted rate, while the ask price is the set rate. In forex trading, you sell a currency based on the bid price and buy based on the ask price. These two numbers will be present on the forex futures trading charts you will be studying.
These are just a few basics to the proper reading of futures trading charts. Of course, it gets more complicated than that, especially when it comes to the assessment part. However, the above tips will help you start out smoothly and will tell you what items to check at the onset of every tracking session to make sure your forex monitoring activities go on without a hitch.