Forex Chart Types: Candlesticks Charts - Bar Charts - Line Charts
In forex trading, there are different chart types that traders can use in their trading. These chart types are provided on the forex trading platform software and on the forex trading platform traders can then choose which chart type is best for their trading method. A forex trader can choose to trade with forex line charts, forex bar charts or forex candlestick charts.
A Forex chart is a graphical representation of price movement of a currency pair over a given period of time.
The forex trading chart is drawn on a grid and the user of this forex chart is at liberty to choose which forex trading chart time frame they want to trade with. The forex trader may choose to use hourly forex charts, daily forex charts or even 1 minute forex chart time frames.
To draw forex charts, three methods are used. The methods used to draw the forex trading charts defines the type of forex chart.
The three types of forex trading charts are: - Candlesticks Charts - Bar Charts - Line Charts
- Line charts
- Bar charts
- Candlesticks forex charts- Most popular
Line Chart - MetaTrader 4 Line Charts
A single line is plotted from one closing price to the next, forming a continuous line.
This type of forex chart provides very little information on the chart and is therefore not very popular among forex traders. In fact this type of forex chart is rarely used.
Line Chart in Forex Trading - This type of forex trading chart leaves out important information about forex price movement. Information such as opening, high and low point of the forex price which 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 trading chart below shows an example of a forex line chart.
Bar Chart - MetaTrader 4 Bar Charts
Forex Bar Charts - This type of forex trading 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 Charts - 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 and lowest point
However, these forex bar charts are not very easy to work with, especially when they are not 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 and closing forex price as illustrated by this example:
Candlestick Chart - MetaTrader 4 Candlesticks Charts
Forex Candlesticks Charts - This is the most widely used type of forex trading charts, they resemble candles, thus their name - candlesticks charts.
Candlesticks charts shows the opening, closing, the high and the low of a particular forex price interval.
The range between the open price and the close price is called the body of the candlestick.
Forex candlesticks charts is the most popular type of forex trading charts among online forex traders because it is the easiest to interpret when trading the forex market. Forex candlestick charts also gives a lot of information about the forex price movement. This makes forex candlesticks charts the most widely used type of charting in FX.
Forex Candlesticks Charts
Below is an example of candlesticks forex charts. To learn more about forex candlesticks charts, read this topic:Technical Analysis of Japanese Candlesticks Patterns in Forex Trading.
How to Select These Forex Trading Chart Types on MetaTrader 4 Platform
To draw any of these types of forex charts on the MetaTrader 4 Platform a forex trader can use the buttons below found on this MT4 forex trading platform.
Drawing Forex Trading Charts on MT4 Forex Trading Software
- To Select a Bar Chart Click the Bar Button
- To Select a Candlesticks Chart Click the Candlestick Button
- To Select a Line Charts - Click the Line Button