One of the important skills that you will need in order to make successful investments and trades is reading the charts. Charts are commonly used for currency and asset trading to represent the price history of a particular instrument over a period of time. While the price of the underlying instrument such as currency exchange rate depends on a vast number of economic and political factors, it is completely possible to trade based on the information gained from the charts and price history alone. This way, you can make trades without needing exhaustive economic study.
Analysis of charts is known as technical analysis. The aim of technical analysis is to determine the general trend of the market and make investment or trade decisions based on them. A basic requirement for this is to understand what information is presented in a typical forex chart or any other trading price history chart. Let us take a brief look at some of the common typed of charts used for trading.