How Do You Analyze the 3 Different Types of Forex Charts?
How Do You Trade the 3 Different Types of Forex Charts?
Analyzing Forex Charts
There are Three types of charts used in Forex: Line Charts, Bar Charts & Candlesticks Charts.
Line Charts - plots a continuous line connecting closing forex prices of a forex instrument.
Forex Line Forex Charts
Bar Charts- 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.
Forex Bar Charts
Candlestick Charts - these use the same price data as bar charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle-stick with wicks on both its ends.
How Do You Interpret?
The rectangle section is called the body.
The high & low are described as shadows & plotted as poking lines.
Candlesticks Charts - What are the 3 Different Types of Forex Charts?
The color of the candlestick is either blue or red
- (Blue or Green Color) - Forex Prices moved up
- (Red Color) - Forex Prices moved down
Most forex trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when price moves up, red: when price moves down.
How Do I Analyze the 3 Different Types of Forex Charts?
