Have you ever wondered how the currency exchange works, or how to read currency graphs? We all know the charts on the financial pages of our favorite newspapers, but how do they work and what purposes do the have? Well to answer that question we first have to understand the purpose of a chart or graph. A chart is mainly used to simplify a complicated explanation of an objects travel over a certain amount of time or route. But how does the chart make it easier to understand? Well graphs are used to visualize the explanation which makes understanding easier.
Now that we have a good understanding of a graph, how do we read the currency graphs in our newspaper? Every day currency changes, and to be able to see the changes clearly these are projected onto a currency chart. When currency traders need to know or be able to make a trade decision, they use these charts as a marker. So when looking at these charts and learning to read them you should be able to make an informed decision on the currency at hand. So now you see how a chart can clarify not only the objects way of travel, but also in many cases project a future path for this object.
Could you make currency graphs? Yes you could very easily and it would also in turn show you the true workings of these graphs. So let's say that your graph is going to be about euro vs dollar. The most important thing to remember is that a good graph is backed up by impeccable raw data collection. So for the next week you can collect information on the rise and fall of those two currencies. When finished, just put them into a chart and you're done.
