What does a price chart represent?

What does a price chart represent?

A price chart depicts changes in supply and demand.

A chart aggregates every buy and sell transaction of that financial instrument (in our case, currency pairs) at any given moment.

A chart incorporates all known news, as well as traders’ current expectations of future news.

When the future arrives, and the reality differs from these expectations, prices shift again.

The “future news’ is now “known news”, and with this new information, traders adjust their expectations on future news. And the cycle repeats.

Charts blend all activity from the millions of market participants.

Whether the transaction occurred by the actions of an exporter, a currency intervention from a central bank, trades made by an AI from a hedge fund, or discretionary trades from retail traders, a chart blends ALL this information together in a visual format technical traders can study and analyze.

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