One of the basic tools that a forex trader uses, is the forex chart. A forex chart is simply a graph of the performance of a currency pair, over a given period of time. It is essential to be able to read a forex chart, and to understand what it means.

A forex chart shows graphically, how a pair of currencies is performing. Looking at the forex chart will tell you whether a currency is getting stronger or weaker, allowing you to buy or sell accordingly. You can look at the chart for a short period of time, say 15 minutes, and see minor trends; or you can look at a longer time frame for long-term trends.

Each forex chart is labeled with the currency pair: USD/GBP, EUR/JPY, etc. All forex trading deals with one nation's currency in relaction to another. So the EUR/JPY chart compares the Euro with the Japanese Yen.

At the bottom of the chart is the timeline which is measured. This can be 15 minutes, 1 hour, a week, or more. On the right hand side of the chart are incremental amounts. The middle of the chart shows the position of the currency pair at a given time.

Many forex related websites have forex charts. Forex brokers, forex tutors, and other forex sites will have charts. If you want to be a serious forex trader, however, you'll want more ready access to forex charts. A good trading software, and a broadband internet connection will give you access to the latest charts, so you can see the trends as they happen. Good trading software will also allow you to save several forex charts for quick reference.

With dozens of currencies being traded in the forex market, there are far too many possible currency pairs to keep track of mentally. Forex charts will show you at a glance what any currency pair is doing. You’ll want to keep an track of the forex charts representing investments that you have already made, and you should have some additional charts saved as well, so you can watch for trends in currencies you haven’t traded yet. You never know when a lucrative new investment is going to come along.