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Monday, April 18, 2011

The main difference between the graph of the currencies of the direct and indirect

Remember when you talk about the exchange of direct and indirect currency, the euro and the pound sterling are the direct exchange, where two Ikunan Base currency and thus be Rmzhma first and then the dollar symbol: EUR / USD, GBP / USDThe Japanese Yen and Swiss franc understanding of the indirect exchange where the dollar is the base currency code will be Mkablhma dollar first and then come Rmzhma: USD / JPY, USD / CHFAs I remember, the price is the amount required payment of the second currency for one unit of base currency.This means that if the figure had risen against the euro against the dollar means that the euro rises to that we be required to pay a larger amount than the dollar for one euro, and this means that the euro rose against the dollarIf the figure dropped against the euro against the dollar, meaning that Innl required to pay how much less than the dollar for one euro, and this means that the euro fell against the dollar.The same thing applies to the pound sterling and all currency is also directlyThe currency is the direct opposite is trueWhen you see that the line or bars or candles in the graph of the yen or the franc rise with the passage of time means that the yen or the franc decline against the dollarWhen you see that the line or bars or candles in the graph of the yen or the franc down with the passage of time means that the yen or the franc rises against the dollarWhy?Recovered if the definition of price is known to answer for yourself.The dollar is the base currency against the yen and the franc.When you go up candles in the graph of the yen or the franc, it suggests that we are demanding to pay how much greater than the yen or the franc (the second currency) for one dollar (one unit of base currency) and this means that the dollar rises, yen or franc decline.And when they go down candles in the graph of the yen or the franc, it suggests that we are demanding to pay how much less than the yen or the franc (the second currency) for one dollar (one unit of base currency) and this means that the dollar decline and the yen or the franc to rise.It is necessary to understand this point completely, but you may sell the yen in the mean time to buy ..!!You may feel some confusion in the understanding and this is normal, but a little practice, things will become very clear for youGeneral ruleIn the euro sterling OoganipCandles high in the graph refers to the high price of the euro or pound.Drop candles in the graph refers to the low price of the euro or pound.In the yen and Swiss francCandles high in the graph refers to the depreciation of the yen or the franc.The low candle in the graph refers to the high price of the yen or the franc.The same goes for the bars or line drawing.

 
You can understand the difference between the graph of the currencies of the direct and indirect easily to think that the graph of the euro and the pound is a graph of the euro and the pound already when showing bars or candles they rise of the euro or the pound, it means they Ertfan, The graph of the yen and Swiss franc, it is in fact graph of the dollar when the show bars or candles of the graph of the yen or the franc, it rises, it means that the dollar is rising and as long as the dollar rises or franc Inkhvadan Wallen.So you are now completely unable to read the graph to any currency and is capable of understanding what is happening to the currency by taking a look at the graph for each of them. Where you can then analyze the graph in an attempt to find out the future direction of price movement of currency and on the basis of this expectation will be out buying and selling, where will buy the currency that you expect to increase their price and sell the currency which it expects to fall in price.
 
Now it's time to learn the basic concepts in the analysis of the graph and how to do this, note that what is remembered in this regard is nothing more than a general idea of ​​the methods and concepts that deepen the analysis you need to familiarized themselves with the theoretical and practice.

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