What's Candlesticks Charts?
Types of Forex Charts
There are 3 types of forex charts: Line forex chart, bar chart and candle stick chart.
Forex Candlesticks Charts - the forex candlesticks charts use the same price data as forex bar charts (open, high, low, and close). However, they represent the charts in a much more easily identifiable way which resembles a candle with wicks on both ends.
How to Read Candles Charts
The rectangle part of the candle stick is called the body.
The high & low are described as shadows and are drawn as poking lines.
Different Types of Forex Charts - Types of Forex Charts and How to Read Charts
The color of the forex candle-stick is either blue or red
- (Blue or Green Color candlestick) - Forex price moved up
- (Red Color candle) - Forex price moved down
Most forex trading platforms like the MetaTrader 4 software, use colors to mark the direction of the forex price. Colors used are blue or green: - green forex candlestick when price moves up, red forex candle stick when price moves down.
What's Line Charts?
A line chart in Forex draws the closing price of a forex pair & connects this closing price to the closing price of the next trading period hence forming a continuous forex line chart which plots the movement of forex price movement.
Line Chart - plots a continuous line connecting closing prices of a on the forex price chart.
Different Types of Forex Charts - Types of Forex Charts and How to Read Forex Charts
What's Bar Charts?
Bar Charts are charts representation of the forex price displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW & CLOSE. The Opening forex price is displayed as a horizontal dash on left & closing forex price as a horizontal dash on right.
Different Types of Forex Charts - Types of Forex Charts and How to Read Them
