A very popular thing to use these days in Forex trading are the live Forex bar charts. They are actually pretty easy to use for when you are trying to plan your currency trades to buy or sell. It's simply a bar chart that is a picture of the different currency prices that are displayed on a horizontal axis with the frequency being shown on a vertical axis. The frequency is represented by the minutes, hours, week, day as well as by the month. It's highly recommended that all Forex traders learn how to read and use these charts to help them make decisions on their trades. Below are some instructions on how to use these live bar charts for your trading.
You will need to use a live Forex chart online service in order to plot your currencies before you do any kind of trading. They are usually free and will give you all the live currency quotes up to the current minute. You can choose your currency name and the pricing frequency that you want at the time. For instance if you want minute by minute price tracking of the dollar and the euro as pairs you would use USDEURO option and choose the minute frequency. You can also choose just one currency if you want as well. Once you pick what you want the chart will then plot both the vertical and horizontal axis of the currency.
You should also make sure that you find the support level that is on the live Forex chart. In order to do this you will need to find the lowest price that is on the graph that your currency has dropped down to on several different occasions. This is usually is a buy signal for most traders. This will be interpreted as the currency support level and in an analysis the currency will probably not be expected to drop further than this price.
You also need to be looking for currency or currency pairs that have a resistance level on the bar chart. This means you will look for the price that is the highest for the currency over a period of several different times. This is the point where the analysis leans towards a sell signal because it is assumed that there are now more sellers out there than buyers.
You should learn to be able to recognize different currency trading patterns on these charts as well. You can use different historical charts to study and discover price patterns. The historical prices can be found for any days past. You can compare a few of these charts and then try to identify any uniformity you might see in the currency support and resistance levels. The more you do this the easier it will be to pick out the patterns.