Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Read Part 1 of this article to learn about the purpose of charts in Forex trading, different chart types, and how to use line charts.

Bar Charts (OHLC) 

OHLC stands for Open, High, Low, and Close. Bar charts are a widely used type of Forex chart that display these four key price points for each time period. They are represented as vertical bars, and each bar provides a comprehensive view of price movements within that specific timeframe. 

Here’s a breakdown of the components of a bar on a bar chart: 

• _{Open Price: The top of the vertical bar represents the opening price of the currency pair at the beginning of the chosen time period.} 
• _{High Price: The top point or “spike” of the vertical bar indicates the highest price reached during that time period.} 

• _{Low Price: The lowest point or “dip” of the vertical bar represents the lowest price reached during that time period.} 
• _{Close Price: The bottom of the vertical bar represents the closing price of the currency pair at the end of the chosen time period.} 

Bar charts are valuable for traders who want a more detailed understanding of price movements. They provide a holistic picture of what happened within a given timeframe. 

How to Read and Interpret Bar Charts 

Reading and interpreting a bar chart involves analysing each bar to understand the dynamics of the market during that specific time period. Here’s how you can read and interpret a bar chart: 

• _{Open to Close: The vertical length of the bar represents the price range between the opening and closing prices for that period. A longer bar indicates a larger price range.} 
• _{High and Low: The “spike” at the top and the “dip” at the bottom of the bar show the highest and lowest prices reached during the period.} 
• _{Market Sentiment: Analysing the relationship between the opening and closing prices can help you gauge market sentiment. If the closing price is higher than the opening price, it suggests bullish sentiment (buying pressure). Conversely, if the closing price is lower than the opening price, it indicates bearish sentiment (selling pressure).} 
• _{Patterns and Trends: By observing patterns in multiple bars, traders can identify trends, reversals, and potential trading opportunities.} 

In summary, bar charts are a powerful tool for traders seeking detailed insights into price movements. While they may seem complex at first, they are worth exploring as you gain experience in Forex trading. 

Candlestick Charts 

Candlestick charts are a highly visual and popular way to represent price movements in Forex trading. They use “candles” to provide a comprehensive view of the opening, high, low, and closing prices within a specific timeframe. 

Here’s a breakdown of the key elements of a candlestick: 

• _{Body: The central and thicker part of the candlestick is known as the “body.” The body represents the price range between the opening and closing prices for the given time period.} 
• _{Wicks or Shadows: Thin lines extending above and below the body are called “wicks” or “shadows.” These wicks represent the highest and lowest prices reached during the same time period.} 
• _{Colour: Candlestick charts use colour to convey valuable information about price movement during the timeframe. Typically, candles are coloured green or red, but this can vary depending on your chart settings and platform.} 

How to Read and Interpret Candlestick Charts 

Reading and interpreting candlestick charts involve understanding the relationship between the body, wicks, and their colours. Here’s how you can read and interpret a candlestick: 

• _{Body and Wick Length: The length of the body and the wicks provides insights into price volatility. A longer body or wick signifies greater price movement during the timeframe.} 
• _{Green (Bullish) and Red (Bearish): In most cases, a green (or white) candle represents a bullish candlestick, indicating that the closing price is higher than the opening price. Conversely, a red (or black) candle represents a bearish candlestick, signifying that the closing price is lower than the opening price.} 
• _{Upper and Lower Shadows: The upper shadow extends from the top of the body to the high price, while the lower shadow extends from the bottom of the body to the low price. These shadows illustrate the price range’s extremes during the timeframe.} 
• _{Patterns: Candlestick charts are renowned for their ability to reveal specific patterns, such as doji, hammer, and engulfing patterns. Traders often use these patterns to predict market reversals or continuations.} 

In summary, candlestick charts are a powerful tool for traders seeking a visually engaging way to analyse price movements. Their ability to reveal patterns and market sentiment makes them a favourite among traders, but mastering their interpretation may require some practice and education. 

Timeframes and Charting Periods 

Forex charts can be customised to display price data at various timeframes. The timeframe you choose determines how much data each candlestick or bar represents. Here are some common timeframes: 

• _{1-Minute: Each candlestick or bar represents one minute of trading data. This timeframe is popular among day traders for making quick decisions.} 
• _{5-Minute: Each candlestick or bar represents five minutes of trading data. It provides a slightly broader view than the 1-minute timeframe while still catering to short-term traders.} 
• _{1-Hour: Each candlestick or bar represents one hour of trading data. This timeframe is suitable for traders who want to capture short- to medium-term price movements.} 
• _{4-Hour: Each candlestick or bar represents four hours of trading data. It’s commonly used by swing traders and provides a more extended perspective of the market.} 
• _{Daily: Each candlestick or bar represents one full trading day. Daily charts are favoured by long-term traders and investors who want to identify significant trends and potential entry points over several days or weeks.} 
• _{Weekly: Each candlestick or bar represents one trading week, making it ideal for traders with long-term investment horizons who aim to capture trends over months or even years.} 

Choosing the Right Timeframe 

Selecting the appropriate timeframe is a crucial decision that depends on your trading style, goals, and preferences. It impacts the type of price movements you observe and the duration of your trades. By aligning your timeframe with your trading style and objectives, you can make more informed decisions and enhance your overall trading success. 

Here are some considerations: 

• _{Short-Term Traders: If you’re a day trader or scalper looking for quick profits from short-term price fluctuations, lower timeframes like 1-minute or 5-minute charts may be more suitable.} 
• _{Medium-Term Traders: Traders with a medium-term horizon, such as swing traders, often use 1-hour or 4-hour charts to capture price movements that span a few days to a few weeks.} 
• _{Long-Term Investors: If you’re an investor or trader focused on long-term trends, daily or weekly charts provide a broader view of the market and are better suited for identifying significant trends and potential entry points over a more extended period.} 
• _{Combination: Some traders use a combination of timeframes to gain different perspectives on the same currency pair. For example, they might use a daily chart for trend analysis and a 1-hour chart for precise entry and exit points.} 

In conclusion, Forex charts are indispensable tools in the currency trading world, offering clarity amid market complexity. Whether you choose line, bar, or candlestick charts, your chart type significantly impacts your trading strategy. Understanding various timeframes is key for aligning your trading style with your goals. As you dive into trading, remember that chart analysis is a skill to refine, guiding you to profitable decisions and financial growth. 

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Of particular interest to traders this week will be the US Consumer Price Index (CPI), the US Producer Price Index (PPI), and the European Central Bank’s (ECB) Rate Decision. These items have the potential to significantly impact the markets. Exercise caution and stay up to date with the latest developments to ensure a successful week of trading. 

Here are some notable market highlights for the upcoming week:

UK Claimant Count Change (12 September 2023)

The number of people claiming unemployment benefits in the UK increased by 29,000 in July 2023.

The data for August 2023 will be released on 12 September, with analysts expecting a further increase of 17,000.

UK Gross Domestic Product (13 September 2023) 

The British economy expanded by 0.5% in June 2023, rebounding from a 0.1% decline in May. 

Analysts anticipate a 0.3% decrease in the data for July 2023, scheduled for release on 13 September.

US Consumer Price Index (13 September 2023)

The monthly inflation rate in the US held steady at 0.2% in July 2023. 

Analysts expect an increase of 0.5% in the upcoming CPI figures, set to be released on 13 September.

Australia Employment Change (14 September 2023) 

Employment in Australia decreased by 14,600 in July 2023. 

Figures for August 2023 will be released on 14 September, with analysts anticipating an increase of 40,000.

European Central Bank Rate Decision (14 September 2023)  

The ECB raised its key interest rates by 25 bps to 4.25% during its July meeting.

For the upcoming meeting on 14 September, analysts expect the central bank to keep the interest rates at 4.25%.

US Producer Price Index (14 September 2023) 

Producer prices in the US rose 0.3% in July 2023, the biggest increase since January 2023.

Analysts expect a 0.4% increase in the figures for August 2023, set to be released on 14 September.

US Retail Sales (14 September 2023)

US retail sales were up 0.7% in July 2023. This follows a 0.3% increase in June 2023 and marks a fourth consecutive rise.

Analysts expect a further increase of 0.2% in the figures for August 2023, set to be released on 14 September. 

University of Michigan Consumer Sentiment (15 September 2023)

The University of Michigan Consumer Sentiment Index for the US was revised from preliminary estimates of 71.2 to 69.5 in August 2023.

Analysts expect the index to remain at 69.5 in the upcoming figures, set to be released on 15 September.

In recent years, Forex and contract for difference (CFD) trading have seen a tremendous surge in popularity in the Middle East and North Africa (MENA) region. This growth can be attributed largely to increased market accessibility, technological advancements and the desire for diversified investment opportunities.

One of the main drivers of the growing popularity of Forex and CFD trading in the MENA region is the increasing accessibility to global financial markets. Traditionally, access to such markets was limited to institutional investors or high-net-worth individuals. However, with the emergence of online trading platforms and the widespread availability of internet services, retail traders in the MENA region can now easily participate in the global financial market. This shift has democratized trading and opened up new opportunities for individuals seeking to diversify their investment portfolios.

Low corporate tax rates and clear regulations have attracted many brokers to the region, and companies like VT Markets are catering and contributing to this growth in the MENA region. VT Markets is a well-known and respected broker that offers multi-asset trading services to retail traders worldwide, with a focus on Forex and CFD. Based in Australia, this brokerage has established itself as a trusted name over the last decade by providing innovative products and services that cater to the needs of traders. With over 200,000 clients from over 160 countries, the company has cemented its reputation by facilitating an average daily trade volume of over 4 million trades each month. Traders can sign up for an account with VT Markets in a matter of minutes.

The development of user-friendly trading platforms and mobile applications has made it easier for traders to access and trade financial markets on the go. Platforms like VT Markets provide real-time market data, charting tools and educational resources that enable traders to make informed investment decisions.

VT Market has successfully created a trustworthy and user-friendly platform that caters to the needs of all traders, particularly those in the MENA region who are new to trading. The demand for mobile app trading has been soaring, with a staggering $22 billion in revenue generated in the year 2022 in the U.S. alone. Forex trading has reached new highs, with a daily turnover of $7.5 trillion globally in 2022, up from $6.6 trillion in 2019. There are approximately 10 million Forex traders globally.

Interestingly, more than 50% of Forex traders favor trading through mobile devices or apps. Recognizing the demand for mobile apps, VT Markets provides a range of platforms to cater to different preferences, including the renowned MetaTrader 4 and 5 platforms, along with WebTrader, WebTrader+, and their proprietary VT Markets app.

The company was honored with the title of Best Multi-Asset Broker in South Africa 2023 by World Business Stars Magazine, solidifying its reputation as a reliable broker. VT Markets’ excellence in Forex trading was also acknowledged by World Business Stars Magazine, which awarded the company Best Forex Platform in UAE 2023. Notably, the company was also recognized as the Best Multi-Asset Broker in the MENA region for 2023 by International Business Magazine, further highlighting its appeal and recognition among traders in the Middle East and North Africa. These awards highlight VT Market’s commitment to providing exceptional services and platforms to its clients.

Learn more about VT Markets by visiting its website.

Featured photo by Yiorgos Ntrahas on Unsplash.

This post contains sponsored content. This content is for informational purposes only and not intended to be investing advice.

About VT Markets:

VT Markets is a global multi-asset broker, providing access to a wide range of financial markets for traders and investors worldwide. With a strong commitment to innovation, technology, and client satisfaction, VT Markets offers competitive trading conditions, advanced trading platforms, and a comprehensive suite of educational resources. As a responsible corporate citizen, VT Markets is dedicated to making a positive impact on society through its corporate social responsibility initiatives.

For more information, please visit the official VT Markets website. Alternatively, follow VT Markets on Meta, Instagram, or LinkedIn.

For media enquiries and sponsorship opportunities, please email media@vtmarkets.com 

Dear Client,

Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume ”.

Please refer to the table below for more details:

The above data is for reference only, please refer to the MT4/MT5 software for specific data.

If you’d like more information, please don’t hesitate to contact info@vtmarkets.com.

Sydney, Australia, 6 September 2023 – VT Markets, a premier online trading platform, successfully concluded its annual King of the Hill Trading Contest, which brought together hundreds of traders from around the world. The contest proved to be an exciting showcase of trading prowess, collectively it has gotten an impressive sum of over US$2 million between May and July 2023.

The contenders squared off in a gripping trading competition where each eyed the opportunity to have their share of over US$90,000 cash prize, along with a coveted spot-on VT Markets’ Wall of Fame. VT Markets’ worldwide reach shone brightly. All regions demonstrated their mettle, generating hundreds of thousands of dollars each. The success of each region in the competition speaks volumes about the flourishing global presence of VT Markets.

A representative from VT Markets expressed delight at the overwhelming popularity of the contest, stating, “With the conclusion of King of the Hill 2023, we are thrilled to have witnessed the exceptional skill and dedication displayed by all the participants. The resounding success of this event cannot be underestimated, and VT Markets is eagerly looking forward to bringing even more exciting opportunities in the near future.”

VT Markets is already gearing up for another edition of the King of the Hill Trading Contest, with details to be announced in due course. As an industry leader in the trading industry, VT Markets aims to build upon the previous event’s triumph and attract an even broader array of traders seeking the coveted title of King of the Hill.

About VT Markets:

VT Markets is a global multi-asset broker, providing access to a wide range of financial markets for traders and investors worldwide. With a strong commitment to innovation, technology, and client satisfaction, VT Markets offers competitive trading conditions, advanced trading platforms, and a comprehensive suite of educational resources.

For more information, please visit the official VT Markets website or email us at info@vtmarkets.com. Alternatively, follow VT Markets on Meta, Instagram, or LinkedIn.

For media enquiries and sponsorship opportunities, please email media@vtmarkets.com

Picture this: you’re standing on the bustling floor of a stock exchange, surrounded by traders frantically waving their arms, shouting buy and sell orders. The numbers on the screens are changing rapidly, and the stakes are high. 

In the world of Forex trading, you may not be physically present on a trading floor, but you are part of a global financial arena where billions of dollars change hands every day, all from the comfort of your own computer. To thrive in this dynamic world, you need a powerful tool – Forex charts. 

Just as a skilled trader uses charts to decipher market movements amidst the chaos of a trading floor, Forex traders rely on various types of charts to navigate the ever-shifting currency markets. These charts are your compass, helping you make sense of price fluctuations and guiding you toward profitable decisions. 

In this guide, we’ll demystify the world of Forex charts, ensuring you’re well-prepared to embark on your trading journey. 

What Are Forex Charts? 

Forex charts are visual representations of the price movements of currency pairs in the foreign exchange market. They are a trader’s primary tool for analysing and understanding market dynamics. These charts display historical price data, and by examining this data, traders can make informed decisions about when to buy or sell currencies. 

Forex charts act as a historical record of a currency pair’s performance, showing how its value has changed over time. Think of them as the equivalent of a weather map for traders, helping you anticipate market conditions and plan your trading strategies. 

Why Are Charts Essential? 

The importance of Forex charts cannot be overstated, especially for beginners. Here’s why they are absolutely essential in your trading journey: 

• _{Price Analysis: Charts allow you to analyse the past price movements of currency pairs. By examining these historical patterns, you can identify trends and potential opportunities.} 
• _{Timing: Forex charts help you determine the right time to enter or exit a trade. They provide insights into when a currency pair might be overbought (good for selling) or oversold (good for buying).} 
• _{Risk Management: Charts enable you to set stop-loss and take-profit levels to manage your risk. This helps protect your trading capital and ensures you don’t incur significant losses.} 
• _{Decision-Making: Without charts, you’d be trading blindfolded. Charts give you the data and insights needed to make informed decisions, reducing the element of guesswork.} 
• _{Strategy Development: Traders use charts to develop and refine trading strategies. Whether you’re a day trader or a long-term investor, charts provide the foundation for your trading plan.} 
• _{Psychological Support: Seeing the data represented graphically can help you stay calm and stick to your trading plan, reducing emotional decision-making.} 

Different Types of Forex Charts 

Forex charts come in various formats, and each type offers a unique perspective on the market. Here’s a closer look at the three main types: 

• _{Line Charts: These charts connect the closing prices of currency pairs over time with a continuous line. Line charts are simple and offer a broad overview of trends.} 
• _{Bar Charts (OHLC): Bar charts represent the Open, High, Low, and Close prices of a currency pair for a specific time period. They provide more detailed information than line charts.} 
• _{Candlestick Charts: Candlestick charts use “candles” to show the same OHLC data as bar charts but in a visually appealing way. The colour of the candle and its shape convey valuable information about price movements.} 

Each type of chart has its strengths and is suitable for different trading styles and purposes. As you continue your Forex journey, you’ll explore these chart types in more depth and discover which one resonates best with your trading style and goals. 

Line Charts 

Line charts are the simplest and most fundamental type of Forex charts. They present price data as a continuous line that connects the closing prices of a currency pair over a specific time period. These charts offer a straightforward way to visualise the general direction of a currency’s price movement. 

Line charts are often favoured by beginners due to their simplicity and ease of use. They are a great starting point for those new to Forex trading, providing a clear overview of price trends without overwhelming details. 

How to Read and Interpret Line Charts 

Reading a line chart is akin to connecting the dots on a graph. Here’s how you can read and interpret a line chart: 

• _{Time on the X-Axis: The horizontal axis (X-axis) represents time, usually displayed as hours, days, weeks, or months, depending on the chosen timeframe.} 
• _{Price on the Y-Axis: The vertical axis (Y-axis) represents the price of the currency pair. The values on this axis vary according to the price scale.} 
• _{Connecting the Dots: To understand a currency pair’s price movement, observe how the line connects the closing prices over time. A rising line suggests a bullish trend (prices are increasing), while a falling line indicates a bearish trend (prices are decreasing).} 
• _{General Trend: Line charts are excellent for identifying the general trend of a currency pair. If the line is consistently moving upward, it indicates a bullish trend, and if it’s consistently moving downward, it signifies a bearish trend.} 

In summary, line charts are a beginner-friendly tool that helps traders grasp the overall trend of a currency pair quickly. While they lack some of the detail offered by other chart types, they serve as an excellent starting point for those new to Forex trading. 

Explore bar charts, candlestick charts, timeframes, and charting periods in Part 2 of this article.