A complete beginner guide to understanding currency pair charts, candlestick patterns, support and resistance levels in forex trading.
Forex charts are the foundation of currency trading. Every professional trader spends hours studying charts to identify opportunities and manage risk.
Line charts connect closing prices with a line. Good for seeing the big picture trend but lacks detail. Bar charts show open, high, low and close for each period. Candlestick charts are the most popular choice among professional traders. Each candle shows four price points and the color tells you instantly if the price went up or down.
A green bullish candle means price closed higher than it opened. A red bearish candle means price closed lower. The wicks show the highest and lowest points reached during that period.
Support is a price level where buying is strong enough to stop price falling further. Resistance is where selling pressure stops price from rising. These levels are crucial for entry and exit points.
Doji signals indecision in the market and a possible reversal. Hammer signals a bullish reversal after a downtrend. Engulfing is a strong reversal signal when one candle completely covers the previous one. Double Top and Bottom are classic reversal patterns.
Our Forex Markets page shows live rates for 18 currency pairs with interactive charts. Use the AI Chart Scan to upload your forex chart and get instant pattern recognition and trading signals.
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