If you are a new entrant to the world of currency trading and often left clueless when it comes to charting and making trading moves with it, this piece of information will surely help you in more than just a way.

One of the best charting packages in the context of currency trading is Netdania. The default number of periods on this chart is 300, which can be considered as a good starting point.

Before you get started with charts, it is important for you to have a close look at the hourly chart to see the "big picture." It is recommended that you give emphasis to considerable support and resistance levels within 2 percent of the day's opening rate.

It is essential that you spend 15 minutes to understand the chart in complete detail. In case the hourly chart is not clear on an immediate basis, you are possibly in the trading range and the trend can be assumed to be on a down side. It will now be the time for you to ascertain if the 15-minute chart can help you confirm the downtrend that is indicated by the big picture.

It is worthwhile to note that the current price on the chart must be below 60 period moving average and the moving average line must be sloping downside. If you can experience this situation then you have established the direction of the present trend to be on the down side.

Now it will be time for you to ascertain the current trend (major or minor) from the 5-minute chart. If the current price on the 5-minute chart is below 60 period moving average and the average line is sloping down, it signifies a major trend. If the current price on the chart is above 60 period moving average and the average line is sloping upward, it signifies a minor trend.

Devising trading moves:

1. If the major trend is down and you are in a minor up-trend, it is advisable to sell when current price on 5-minute chart falls below the 60 period moving average and the 60 period moving average line is sloping downward.

2.In case the major trend is down and the downtrend is confirmed by the 5-minute chart, it is best to wait for an up-trend to appear and reverse before you can enter the market.

3.If you are experiencing prevailing trend down, 5-minute chart down, and just above day’s lows, it is best to buy with a tight stop below lowest of the day.

In short, the safest place to buy is after a sustained considerable decline when the bottoms are getting higher. It is always good to buy above old highs and sell below old lows in the context of entry levels but the moves should not be overly mature and a short-term reaction should be unlikely. It is also worthwhile to note that higher bottoms always suggest strength and an up move generally initiates from the 3^rd or 4^th higher bottom. But, you need to reverse the rule in a rising market.