Forex Trading System

	Candlestick Charts and Forex Trading System Platforms Your Forex trading system platform gives you access to short and long-term candlestick charts. Find out which chart is best for you. David Feder 2/1/2009 Candlestick Charts and Forex Investors Just like people have different tastes in cars and food; investors prefer using different candlestick charts. One investor might favor a long-term chart while another investor might prefer a short-term candlestick chart. To choose the best chart for you, you should also understand the nuances between the different candlestick time spans, which can affect your overall Forex trading system experience. Short versus regular time span candlesticks Regular time span candlesticks measure currency fluctuations during one full trading day, with the usual open and close rates, different body sizes, and shadows. Short time span candlesticks, on the other hand, can represent an hour’s time or even 30-minute intervals or less, which can give you a real good feel for any trends. Here’s how it works for short time spans on a Forex trading system. Let’s say that you want to day trade over a six-hour period. You want to be able to access the best chart for the best buy and sell positions. In this scenario, you can choose either 30 or 60-minute time interval candlesticks and still benefit from tracking any trends. Suppose you follow a candlestick chart that’s divided into 30-minute intervals over a six-hour period. That means that you’ll have two candlesticks per hour, for a total of 12 candlesticks (a decent amount to track). Keep in mind that in this case each separate candlestick represents the open and close rates for a 30-minute interval, as well as any shadows or extensions (rates that fall outside the open and close boundaries). Who benefits from which time span? Swing traders (investors who swing back and forth between day and long-term trading) can benefit from both short and regular time span candlesticks, whereas long-term traders would usually benefit more from the regular time span candlestick. Day traders on a Forex trading system would benefit most from the shorter time span. Summing it up Adding to the equation is choosing the appropriate candlestick chart. Short-term candlestick charts (short as a day or so or even less), which usually utilize short time span candlesticks, would be best for day traders. Long-term charts (from a day to a week or longer with regular time span candlesticks) would normally be ideal for long-term traders. Swing traders can benefit from both short-term and long-term charts (with either short or regular time span candlesticks) when trading on a Forex trading system.