Q&A for How to Read Forex Charts

Return to Full Article

Coming soon

Add New Question

Question

How can you make money trading with candlestick charts?

Andrew Lokenauth
Finance Executive
Andrew Lokenauth is a Finance Executive who has over 15 years of experience working on Wall St. and in Tech & Start-ups. Andrew helps management teams translate their financials into actionable business decisions. He has held positions at Goldman Sachs, Citi, and JPMorgan Asset Management. He is the founder of Fluent in Finance, a firm that provides resources to help others learn to build wealth, understand the importance of investing, create a healthy budget, strategize debt pay-off, develop a retirement roadmap, and create a personalized investing plan. His insights have been quoted in Forbes, TIME, Business Insider, Nasdaq, Yahoo Finance, BankRate, and U.S. News. Andrew has a Bachelor of Business Administration Degree (BBA), Accounting and Finance from Pace University.

Andrew Lokenauth

Finance Executive

Expert Answer

You make money with candlestick charts based on trends and patterns. Charting is based on data and patterns over time, so you need to learn the different types of patterns. Once you learn them better, you'll be better and executing when, what time, and how to trade.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 1 Helpful 2
Question

How do you use Forex signals?

wikiHow Staff Editor
Staff Answer
This answer was written by one of our trained team of researchers who validated it for accuracy and comprehensiveness.

wikiHow Staff Editor

Staff Answer

Forex signals are bits of information that you can get about the market from a signal service, such as an app, email alert service, or texting service. Some signals may simply provide information (such as current market prices), while others can advise you to take certain actions, like buying or selling. Get familiar with the format used by your chosen signal service so you know what the signals mean and how to use them.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 1 Helpful 5
Question

How do you read Forex charts like a pro?

wikiHow Staff Editor
Staff Answer
This answer was written by one of our trained team of researchers who validated it for accuracy and comprehensiveness.

wikiHow Staff Editor

Staff Answer

Once you get familiar with the basics of reading Forex charts, you’ll need to spend a lot of time practicing. After a while, you’ll not only be able to read the charts quickly, but you’ll get a sense of the typical trends and patterns and what they mean.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 0 Helpful 3
Question

How do you predict Forex charts?

wikiHow Staff Editor
Staff Answer
This answer was written by one of our trained team of researchers who validated it for accuracy and comprehensiveness.

wikiHow Staff Editor

Staff Answer

You’ll need to spend time learning how to recognize and analyze trends. After a while, you’ll get a sense of the common patterns and develop a stronger intuition about what they mean and how they’ll play out.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 0 Helpful 4
Question

When I buy and there is an upward trend, what would be the best time to close the deal?

wikiHow Staff Editor
Staff Answer
This answer was written by one of our trained team of researchers who validated it for accuracy and comprehensiveness.

wikiHow Staff Editor

Staff Answer

There's no perfect answer to that. Ideally, the best time would be at the highest point, before the price started going down. However, you don't really have any way of knowing if the upward trend will continue. As long as the price is still higher than it was when you bought, you'll profit off of the sale. The higher the price is than the price you paid, the more you'll make. It's simply a matter of how long you're willing to wait to see if the trend continues.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 0 Helpful 11
Question

How do I know when to enter a trade and exit?

Donagan

Top Answerer

It's not possible to give you a good answer. Successful forex traders will tell you there is an art and a science to it, a mix of knowledge, intuition, and luck. Even for experienced traders there's an element of gambling involved.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 3 Helpful 32
Question

What do "closing" and "opening" mean in Forex trading?

Donagan

Top Answerer

They are respectively the final and beginning prices of a specific currency in a trading day.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 7 Helpful 30
Question

If the prices represent opening and closing during the day, who and what decides when something opens and closes? Or is it just denoted by the time frames?

Community Answer

If you are referring to the use of candlestick, which I suspect you are, the opening and closing is arbitrarily set by time frame in, say, one minute, five minutes, ten minutes, one hour, two hours, or one day. Your platform makes it available for your use as a decision tool.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 0 Helpful 11
Question

What is the difference between stop loss, hold and take a profit?

Donagan

Top Answerer

A "stop loss" is an instruction to a broker to sell a security you own before its price falls below a pre-determined point. "Hold" means to retain ownership of a security. "Take a profit" means to sell a security after it has risen in value above the price at which it was purchased.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 3 Helpful 18
Question

What is the right amount for the beginners to start with forex trading?

Donagan

Top Answerer

Invest the minimum amount your broker will accept to begin with. Gain some experience before you invest more.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 1 Helpful 10
Question

I have downloaded a demo account but I have never placed a trade before. How do I do so?

Donagan

Top Answerer

See Trade Forex .

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 9 Helpful 8
Question

How do I see the right time to trade?

Donagan

Top Answerer

See Make Money in Forex .

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 10 Helpful 3
Question

If I decide not to close my loss and I decide to leave it to raise until it becomes a profit, can my broker forcibly close it down?

Donagan

Top Answerer

No. Brokers do not force their clients to sell holdings.

Thanks! We're glad this was helpful.
Thank you for your feedback.
If wikiHow has helped you, please consider a small contribution to support us in helping more readers like you. We’re committed to providing the world with free how-to resources, and even $1 helps us in our mission. Support wikiHow
Yes No

Not Helpful 0 Helpful 3