Forex Chart Types: Candlesticks Chart, Bar Chart and Line Chart Forex Charts
A Forex chart is a graphical representation of price movement of a currency pair over a given period of time.
Drawn on a grid & the user is at liberty to select which forex chart time frame they want to trade with. The trader might select to use hourly charts, daily charts or even 1 minutes chart time frames.
To draw forex charts, 3 techniques are used. The techniques used to draw the forex charts defines the type of forex chart.
The three types of forex charts are: - Candlesticks Chart Forex - Bar Chart Forex - Line Chart Forex
- Line charts
- Bar charts
- Candlesticks forex charts - Most popular
Line Chart - MetaTrader 4 Line Chart Forex
A single line is plotted from one closing price to the next, forming a continuous line.
This type of chart provides very little data on the chart & is therefore not very popular among forex traders. In fact this type of forex trading chart is rarely used by traders.
Line Chart in Forex Trading - This type of chart leaves out important information about forex price movement. Information such as opening, high & low point of the forex trade price that are not represented on the graph.
This makes this type of forex line chart to be considered sketchy by forex trading technical analysts.
The forex chart below shows an example of a forex line chart.
Bar Chart - MetaTrader 4 Bar Chart Forex
Forex Bar Chart Forex - This type of chart shows the opening, closing, the high and the low, for a particular forex price interval and is represented by bars that look like the ones drawn below - hence its name bar charts
- Bar Chart Forex - bar chart has a vertical bar showing the total forex price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High and low denoted by the highest & lowest point
However, these forex bar charts are not very easy to work with, especially when they aren't magnified. It becomes very hard to interpret the bar charts with ease when trading the forex market thus making them not very popular among forex traders.
A Bar chart that is not magnified makes it hard to view the opening & closing forex price as illustrated by this example:
Candlestick Chart - MetaTrader 4 Candlesticks Chart Forex
Forex Candlesticks Chart - This is the most widely used type of forex charts, they resemble candles, thus their name - candles charts.
Candle-sticks charts shows opening, closing, high & low of a particular forex price interval.
The range between the open price & the close price is called the body of the candle-stick.
Forex candlesticks charts is the most popular type of forex charts among online traders because it is easiest to interpret when trading the FX market. Forex candlestick charts also gives a lot of information about the forex price movement. This makes candles charts the most widely used type of charting in FX.
Forex Candlesticks Chart Forex
Shown Below is example of candles charts. To learn more about forex candlesticks charts, read this topic: Technical Analysis of Japanese Candles Patterns in Forex Trading.
How to Select These Forex Chart Types in MT4 Platform
To draw any of these types of forex trading charts on the MT4 Platform a trader can use the buttons below found on this MT4 software.
Drawing Chart Forex on MT4
- To Choose a Bar Chart Click the Bar Button
- To Choose a Candles Chart Click the Candlestick Button
- To Select a Line Chart Forex - Click the Line Button
