Having a good idea on how the entire forex market including its rates, percentage, commissions and leverages works is a vital tool all forex traders should be conversant with. A careful but well calculated study of how the market moved in the past can assist you when it comes to the anticipation of future price movement and can be used to trade better with a greater level of accuracy.
The CAD USD graph refers to the study of the CAD USD historical rates for a period of tim, say 10 years which have been accessed and analyzed by taking note of the market trends and exchange rates. All forex traders, either a novice or professional should always strive to familiarize themselves with the study of forex historical data and charts so that they can be conversant with the price movements which have developed or unfolded in the past.
The CAD USD graph shows the types of markets (trending and ranging) that are obtainable in forex trading. While the trending market is characterized by an uptrend and downtrend, the ranging market deals with a period of neutrality.
ADVANTAGES OF CAD USD GRAPH
1. PREDICTION OF FUTURE PRICES
Trading strategies and market trends are some of the factors (apart from the exchange rate and economy). These two are the major determinants of how successful a business becomes. While some traders prefer to trade with the trend, there are some times when it is better to trade against the trends because the market may suddenly favor that. All the trader needs, is to be engaged in a well calculated move so that the market will favor the trading strategy.
2. SOURCE OF INFORMATION
The data displayed in the graph usually gives the trader a general idea on what direction the market s moving at the time of study. The CAD USD graph will clearly reveal if the market has been experiencing an uptrend, downtrend or even neutrality. From the study of the market trends, the trader can either decide to trade with or against the trends. In trading, it should however, be noted that, trading against the trends should only be done under special conditions.
3. AFFECTS DECISION MAKING
While a lot of traders are only interested in the money and not the market, the data from the graph (e.g. CAD USD graph) can assist them in having a general knowledge about how their currency pair of interest is faring in the market. This information will go a long way in affect the decision making capabilities of the traders. To enjoy your investment into the forex market, it is very important that take note of all the exchange rates in the market.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.