How Do You Analyze Different Types of Forex Charts?
How Do You Trade Different 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 candles charts use the same price data as forex bar charts (open, high, low, and close). However, forex candlesticks charts represent the charts in a much more easily identifiable way which resembles a candle with wicks on both ends.
How Do You Read Candlesticks Charts?
Rectangle part of the candle stick is called the body.
The high & low are described as shadows and are plotted as poking lines.
How Do I Interpret Different Types of Forex Charts?
The color of the forex trading candlestick is either blue or red
- (Blue or Green Color candle) - Forex price moved up
- (Red Color candle) - Forex price moved down
Most forex trading platforms like the MetaTrader 4 platform, use colors to mark the direction of the forex price. Colors used are blue or green: - green forex candle when price moves upward, red forex candle stick when price moves downwards.
What is a Line Charts?
A line chart in Forex draws the closing forex price of a forex instrument & connects this closing forex price to the closing forex price of the next trading period hence forming a continuous forex line chart which plots the movement of forex price movement.
Line Chart - draws a continuous line connecting closing forex prices of a on the forex price chart.
How Do I Interpret Different Types of Forex Charts?
What is a 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.
How Do I Interpret Different Types of Forex Charts?
How Do I Interpret Different Types of Forex Charts?
