The euro and British pound posted gains against the dollar. The EUR/USD pair traded between 1.3156 and 1.3333, marking a new high level since May. As a result of the poor jobs report in the US, the British pound posted a 6-month high against the dollar. The GBP/USD reached a high of 1.5995 and a low of 1.5838.

For second straight day, the euro traded versus the dollar with small difference between the high and low points, as the EUR/USD forex pair traded between 1.2966 and 1.3042. The British pound also remained nearly unchanged against the dollar. The GBP/USD pair posted a high of 1.5638 and a low of 1.5544. Following the drop in orders for US durable goods and the anticipated slow economic growth according to Federal Reserve, the Yen posted gains against the dollar. The USD/JPY forex pair closed at a high of 88.11 and a low of 87.25.

The first most important tool is the best Forex trading platform for you. The market is flooded with several trading platforms and robots. Such a tool is quite effective as they make your trading easy. Also a trading platform may combine several trading tool in itself and hence making your job easy to look for different trading tools from different sources. A trading platform can be used not only for placing your trade orders but also to watch over the market situation. Some platform integrates the most widely used trading tool i.e. the charts and patterns. If one can understand the charts and the patterns then they can made their Forex trading very easy.

The formation of the patterns traces back to 18^th centaury. They were developed by the Japanese rice traders to predict the price change. It was a line graph used to show the price of the commodity. This pattern was named as the candlestick pattern.  Following the same line, the next tool that was created was the bar charts. They were clearer and gave a wide scope of information. Bar charts were able to represent open, close, high and low of the price patterns for a long time frame.

The other tool that was developed by the Americans was the candlestick chart. It was introduced back in the 20^th centaury in the American stock exchange by Mr. Charles Dow. This tool can represent the price of the currency pairs nicely. It has some box pattern which represents the opening and the closing price of the currencies. Different boxes are colored with different colors to represent the whole price change effectively. Such a tool is of great help even today. Most of the Forex brokers and Forex advisors are sending these charts to their clients to help them take decision to trade the currencies. These charts are very simple to understand and can predict the current scenario of the whole Forex market. The color pattern of the candlestick charts can help you to understand the moving direction of the market.

Forex trading tools are many but you must use the one which you can easily understand and find yourself comfortable using it.

The trendlines are actually lines drawn across significant lows in an up trend Forex market and significant highs in a downtrend market. They can be a useful addition to your strategy, as they provide confirmation of signals from other tools. We will discuss about the three trendlines strategy in this article to make you understand it better.

Short Term Trendlines: These lines are drawn across the most recent two lows or highs in the market. These lines are observed best on a smaller time period like a 15 minute or 30 minute chart.

Medium Term Trendlines: You can draw these lines on a higher time period like a 60 minute chart. They connect the nearest noteworthy low to current price action to the previous significant low in an uptrend Forex market. They also connect the nearest significant high to current price action to the previous significant high in a downtrend market.

Long Term Trendlines: These lines are used for higher time periods like the 4 hour chart or the daily chart. You can draw them following the same method used for the Medium Term Trendlines. They can be powerful Forex trading tools, as traders of big institutions mostly use the daily chart. The big traders consult the daily chart within them before making decisions. So, you can present yourself right at the exact position of price.

You can easily use the Three Trendline Strategy as an effective Forex trading tool. The short-term trendlines can provide you a defined picture of the current price action, but they often break down during the day. You should not enter trades based on breaks of short-term trendlines. You should use them to get a clear, instantly recognizable graphical representation of current price behavior.

However, you should be careful and patient while using the trendlines as a Forex trading tool. You should also employ them with caution and discretion. If you cover your charts with every trendline possible, it may end in increasing confusion and foggy analysis. To get the best result by using the Three Trendline Strategy, you should use one or two trendlines at key or significant swing points. This will give you a clear picture of price action and you will get profitable trades, by combining them with your other Forex trading tools.

One the face of it, skills and experience may seem the same as technical knowledge on the subject. However, the belief is wrong as the skill and experience are not restricted to that alone. A forex currency trader needs to have the knowledge about his platform. He should know what different indicators mean, what they might suggest when they flash something or how can they be put to use to your benefit. However the two dimensional trading account and system are not the only things that are required to achieve success in a trading system. The forex success can be achieved only with multi dimensional things which consist of many different things. For achieving success you have to recognize a strategy that suits you best. Often the forex traders succeed if they are comfortable with the strategy they are practicing. The forex traders must also remember to appropriate spare funds should be kept and risk management must be practiced.  Maintaining records to measure your success and failures (in order to learn from them is a sign of potential successful forex traders.  One has to be patience in the forex market as these skills might take months to learn, but when you learn them they will help you a lot. Dedication, consistency and sincerity are the three traits necessary for successful forex traders. The forex currency market is as capricious as it is lucrative and rewarding. One must always look to minimize the risks and this can only be done after proper research and risk management lessons.    

It is impossible to analyze the world of forex trading while sitting on your couch. The real forex market can only be understood, when you are exposed to it. The study and the research then yield rich dividends in the form of money. Overnight success in the forex market is impossible. It is a result of hard work and sweating it out on your part. If you think you have the ability to make this happen then you surely stand a good chance for being a forex trader. You should remember not to get dejected when you have suffered a loss. The real forex trader tries again and again.

The fluctuations that take place in the forex rates are usually due to political or economic factors. These fluctuations are the result of fluctuations in Oil Prices or due to some other external factors like political instability or major calamities. In order to understand how the forex market will react due to external factors or other factors you will have to understand forex quotes. This article will explain how you can read and understand forex quotes.

The forex quotes are expressed in pairs. Take the example of Euro verses US dollars.

The forex quote, USD/EUR=100.50 means that one US dollar is equal to 100.5 Euros. The forex currency to the left of the Slash (/) is referred to as the base currency and its value is always one. The forex currency to the right of the slash is referred to as the counter currency. In this case USD is the Base Currency and Euro is the counter currency. In this case USD is stronger than euro and one USD can buy 100.50 Euros.

U.S dollar is involved in almost 90% of all the forex transactions and is considered as the standard base currency for all the transactions. It is also called as the central currency of the forex market.

Another example for the same is given below.

In this case the base currency is the Indian rupee and the counter currency is the Malaysian ringgit. Now it is displayed or quoted in the following format. Rs/Ringgit=0.13. This means that one Indian rupee can buy about 0.13 Malaysian ringgit.

The above are only examples and real quote values are not mentioned in it. Real quote values change almost every second. The real goal of forex trading is to make profit over currency rate movements. This requires that you have the basic knowledge of the forex market and also the technical know-how of how the whole methodology works.

You can considerably find out the difference in the forex trading success and forex trading failure with the help of these forex charts. It is very important that the trader has a knowledge regarding reading these forex charts. This is so because the technical analysis will make them aware of the new inclinations coming up and thus they can make the correct sell or buy decision at an appropriate time.

The forex traders are searching for trustworthy and consistent charting tools for the forex currencies that would be user-friendly. A number of options are present today in the forex market that will help largely to adapt a forex chart. You can select these forex charts for any pair of currency and any kind of chart can be used that is required by the trader. It may be a bar chart, line chart, candlestick chart or any other types of charts preferred by the forex trader. You can see several different chart types on Easy-Forex platform that are designed to meet the requirements of different traders. These include: five minute forex charts, one minute forex charts, day forex chart that are also referred as tick forex charts.

Bar Forex Chart- this chart is well know chart that contain adequate data regarding the price movement of the different pairs of forex currency. The low price and the high price are connected using a vertical bar. This chart is very useful to have a good understanding and awareness of the market condition. And that’s why the bar forex chart is the first choice of most of the forex traders.

Candlestick forex chart- this chart is slightly related to the bar chart, with the only difference in the price direction data. This chart features the shadow and the body. The closing price and the opening price is the body of this chart type. If the opening price is found less than the closing price, the place is left blank. And in the opposite case, the body is filled with a color. The trading platform determines the color of the body.

Lines forex chart- in this type of forex chart, the prices are shown in the form of a point in a map. The resulting price points unite by a line known as price line. This chart has varied time periods. The chart becomes wider with increased in the time period. These charts offer some additional data; this is the characteristic feature of line forex charts.