Forex encyclopedia

Forex charts serve as framework of technical analysis, and besides allow monitoring behavior of trading contracts by eye. We will now discover the following notions, which are often used for reviewing price charts: • open price – the price of the first transaction within the reviewed time interval; • close price – the last price for the present time interval; • maximum – the largest price for a certain time interval; • minimum – the least price within time interval; The most popular time-frames are: W1 (week), D1 (day), H4 (4 hours), H1 (1 hour), M30 (half of hour), M15 (15 minutes), M5 (5 minutes). The simplest type of Forex chart is the linear – jogged line, which more often is built for close prices.
Financial Conditions index (IFC) is applied in the USA to define market liquidity and measure risk. Value is calculated on the basis of more than 100 various figures of financial activity in the country. Index with plus tells about tough financial conditions formed by that moment, whereas its negative value signalizes about a freer economic climate.  
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Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
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