How Do You Trade a Forex Candlestick Chart?
A beginner forex trading guide to forex trading - how to read forex charts. The 3 different types of forex charts are line chart, bar chart & candlestick chart - these oftenly used forex chart types are described in this learn forex trading guide & beginner traders can learn how to Trade these forex charts from this learn forex charts guide.
This learn forex charts tutorial will show you how to Trade these forex candlesticks charts that are commonly used in forex trading.
How Do You Trade Forex Trading Bar Charts?
Forex Line Charts forex line charts draws a continuous line connecting closing forex prices of a forex currency pair.
How Do You Trade a Forex Chart?
Forex Bars Charts - forex bar charts are displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW and CLOSE. The Opening forex price is displayed as a horizontal dash on left & closing forex price as a horizontal dash on right.
How Do You Trade a Forex Chart?
Main disadvantage of a bar charts is that these forex charts not visually appealing, therefore most traders don't use them.
Forex Candlesticks Charts - these forex candlesticks charts use the same price data as bar charts - open, high, low, and close. However, forex candlesticks charts are drawn in a much more visually identifiable way which looks like a candle with wicks on both ends.
How to Trade Candlestick Charts for Beginner Traders
The rectangle part of the forex trading candle is called the body.
The high & low are described as shadows and are drawn as poking lines.
Forex Candlesticks Charts
The color of the forex trading candle-stick is either blue or red:
- - Blue or Green Color Forex Candles - Forex prices moved upward
- - Red Color Forex Candles - Forex prices moved downwards
Most forex trading platforms like the MT4 Software, use colors to mark the direction of the forex price. Forex candlesticks colors used are blue or green: color of forex candle is blue when price moves up - color of candle is red when price moves down.
How Do You Trade a Forex Candlestick Chart?
When Forex candles charts are used it's very easy to see if the forex price moved upwards or downward as opposed to when forex bar charts are used.
How Do You Trade a Forex Candlestick Chart?
