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Free Forex Currency Charts

Foreign exchange currencies or forex currencies are traded in pairs. The first currency that is listed is called the base currency. The second is known as the quote currency or counter.

The base currency is that money which investors or issuers keep their account books. The United States dollar is usually taken to be the base currency as far as quotes go in forex markets. This means that expressions of quotes are stated as a unit of one dollar against the other currency that is quoted in the trade. There are principal exceptions to this: the Euro, the British Pound and the Australian Dollar.

A bid is an expression that indicates a desire to purchase a commodity at a stated price. The opposite of bid is Offer.

Ask, which is referred to as Offer, shows a willingness to dispose of a futures agreement at a stipulated price.

There are three chief kinds of forex market currency charts that are live streaming ones. They are the line chart, the candlestick chart and the bar chart. The first chart is created by connecting the closing prices of the day.

Bar chart depicts the value performance of a currency pair. It is constructed of vertical bars that are created at intra-day time gaps, every 30 minutes, for example. One bar consists of four 4 hooks. These hooks represent the opening and closing as well as the high and the low rates of exchange for the particular time interval.

A candlestick chart is a variation of a bar chart. The difference is that a candlestick chart shows OCHL (Opening Closing High Low) prices in the form of candlesticks having a wick at either end. When rate at the opening is greater than the rate at closing, the candlestick will be shown as black -- at times it is shown as red. When the rate at time of closing is greater than the rate at opening, the candlestick becomes white or green.

In forex, a technical indicator assists in analyzing price movements. These are shown in the forex charts that are free. Examples of technical indicators are Stochastic, MACD, Bollinger bands and RSI.

RSI, the short form for Relative Strength Index, is a popular indicator. Naming it Relative Strength Index may look a bit misleading to some, for the RSI is not involved in comparing the relative strengths of a pair of securities. Rather, it compares the internal strength of one security. It may be more appropriately called Internal Strength Index. Comparative Relative Strength charts are those which make a comparison of two market indicators.

BOL or Bollinger borders is defined as two lines that are drawn on the space that is equal to some standard deviations. As the standard deviation value is dependent on price volatility the lines adjusts their width instantly. The width goes up at the time the market gets more volatile. Conversely, it decreases in a lesser volatile market.

The best-known indicator is MACD. It is fashioned on the principle of differences in average values. MACD was defined by Jerald H. Appler as the disparity between 2 EMAs -- Exponentially Smoothed Averages.

MACD effectiveness is greatest in conditions when swings in market trading are high in amplitude. Overbuying or overselling divergences and states and intersections are MACD most often used signals.

Another indicator, the Stochastic Oscillator -- STO -- displays the times when the price comes to the limit of its trade pitch in a pre-set time period. This is called Impulse of Price or an indicator of changing speed. It has 2 curves - the fast is called %K; while the slow one is %D.