Its no secret – the pros and full time forex traders use charts. They use them in the morning to check the markets, and they view historical data to make informed decisions on what to invest in next.
One can base his decision on historical forex charts, records and patterns in order to make sound and rational decisions. For example, USD/GBP sits above 2.40 in the year 1980 and has never been back to the same spot ever since.
Charts can give you a long term report of the position and strength of certain pairs. Inevitably there will be pairs that remain strong all throughout the same way there are ones that are weak as well.
Charts are crucial for making rational decisions based on signals and patterns
This purpose of charts can be paralleled as to how international relations are analyzed. A country will always base its dealings with another country on previous treaties and agreements where they happen to interact.
The United States, for example, will always remain reluctant to agree to come at a compromise with China because in the past, situations which brought them together have always been faulty and problematic. This is the reason why neither of them was willing to bow down during the Copenhagen talks months back.
Credible Historical forex charts are made available by economic institutions that have been active in the field for a long period of time. It is important that you derive your charts from a reputable institution as the value of the chart is diminished based on the lack of accuracy.