Next Video - Forex

TRANSCRIPT

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Here’s our first example – and what we're looking at is the Euro against the US Dollar – so essentially this is the exchange rate. And here - each individual candle shows us what happened on a single trading day.

Everything together here - shows us what the price has done over the last 6 months - from November to April.

And obviously we read the chart from left to right - just like how you might read a book.

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The latest price is over to the far-right hand side of the screen. So in this example – that would be around 1.205.

Looking at this chart - we can see the lowest price was around 1.16 in November. And the highest price was 1.235 at the beginning of January…

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Now because each candle represents 1 day here – this would be called the daily chart. A lot of people confuse this where they think a daily chart means the whole thing from left to right – but it’s not – the daily chart means each individual candle represents just 1 day.

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And what we can actually do – is we can control how long a period of time - each candle represents.

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So here’s Eurodollar again - but now we’re looking at the hourly chart - because each candle is now showing 1 hour of price action.

And in total from left to right - we’re now seeing what’s happened over the last week.

This is Eurodollar again - but now the 1-minute chart – so a really short timeframe here. And now we’re seeing just the last couple of hours.

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So with the same financial product – we can zoom in and out - on the price action - using all of these different timeframes…

Here’s another product – and this is the S&P 500. Now what this shows - is a collective basket of the top 500 shares in the US.

Generally speaking the S&P is seen as a benchmark - for seeing if the economy is in a good or a bad place. And this one in particular is the weekly chart – so it’s a real long-term view that we have here over the last 3 or 4 years.

And it’s quite interesting but you can see this big downwards blip in the beginning of 2020 – that was obviously when covid was first being discovered - and it quite clearly hit the markets hard...

So all these economic cycles – of booms and recessions and everything inbetween – all of that can be seen in our charts…