To be profitable in today's world technology and advancement, one must be proficient and reading and more importantly understanding chart patterns and basic technical indicators. Below are just a few basic points to help your understanding of technical analysis and currency chart reading.
Price reflects the perception and action taken by the market participants. It is the urgency between buyers and sellers in the trading pit that creates price movement. Thus, all fundamental factors are quickly discounted in price. Therefore, by studying the price charts, you are indirectly seeing the fundamental and market psychology all at once - after all the market is feed by two emotions - Greed and Fear and once you understand that, then you begin to understand the psychology of the market and how it relates to the chart patterns.
Data Window.
Most computer programs will display a small box of data usually called a display window which will contain the following items:
O = Opening Price
H = Highest Price
L = Lowest Price
C = Close or Last Price
Tr = Volume or number of trades (not contracts) in that time period.
