Quick Answer
A forex chart shows how a currency pair price moves over time. Beginners should read it in this order: pair → timeframe → candles → trend → support/resistance → risk.
1. Start With the Currency Pair
At the top of the chart you will see the symbol, such as EUR/USD, GBP/USD, USD/JPY, or XAU/USD. The first currency is the base currency, and the second is the quote currency.
2. Check the Timeframe
The timeframe controls how much time each candle represents. A 1-minute chart shows short-term movement, while a daily chart shows a bigger market picture.
| Timeframe | Best For |
|---|---|
| 1M–5M | Scalping, fast decisions |
| 15M–1H | Day trading |
| 4H | Swing trading |
| Daily | Longer-term direction |
3. Understand Candlesticks
Each candle has an open, high, low, and close. A bullish candle usually means price closed higher than it opened. A bearish candle means price closed lower than it opened.
4. Identify the Trend
An uptrend usually forms higher highs and higher lows. A downtrend forms lower highs and lower lows. A sideways market moves between support and resistance.
5. Find Support and Resistance
Support is an area where buyers may enter. Resistance is an area where sellers may appear. These levels help traders plan entries, stop losses, and take profits.
6. Connect the Chart to Risk
Reading a chart is not enough. You must know where your stop loss goes, how much you are risking, and whether the potential reward is worth the trade.
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