If you have been looking at trading on the Forex market, it's likely that you've had a look at those charts. For many new traders, this can be something that looks much more complicated than it honestly is. As you do begin trading, you will definitely need to become well acquainted with the Forex charts, because you're going to be seeing a lot of them.

Imagine these charts much like a map. Just like a map there are right ways and wrong ways to read them and how you do will make all the difference in the world. Most Forex charts are made up of many different time frames and patterns. Forex trading charts are your key to the kingdom, helping you to know what is trending and when.

If you're reading your charts correctly, there are a few things you will notice about the way things happen. First of all, you begin by reading the dailies first, then the hourlies, and then there are charts that are split into 15 minute increments, as well as 5 minute sections. Some people also use the 1 minute charts, but this should be done with caution as false signals can occasionally happen.

Another way to know that you are reading your charts correctly is to be sure of the price via the time frame. Usually if the time frame is higher, the price action is going to be that much more significant. If there is a conflict in price movement, you might notice that this is also tied in with the time frame. A good example would be noticing a certain rising trend on an hour chart, but then on the five minute chart it will be on the downtrend. Usually this is because you see the candle in the hour chart and it's actually equal to 15 candles when it is compared to that 5 minute chart. The higher time frame is going to be the one you want to go with because it's going to be much more significant than that of the lower.

Think of your map in the Forex trading charts also as a big puzzle. You take pieces from each and you can more easily identify trends. Establishing a direction of any given trend is usually fairly easy this way, but you have to then decide if you want to go long or short, but only beginning with those higher time frame Forex charts. You then move on to the lower time frames and this will help you to more correctly identify your best point of entry.

There are so many different things that you can utilise when you're dealing with these charts. Putting it all together is a big part of your own personal trading strategy and can mean the difference between bigger gains or greater losses.