How to Read Forex Charts Beginner Traders PDF - Forex Chart Patterns & Charts Analysis
Forex Charts Analysis Technical Analysis - Forex Charts Analysis Strategies
There are 3 types of charts used in Forex: Line Chart, Bar Chart and Candlesticks Chart - how to read forex charts beginners Tutorial.
How to Read Forex Chart Analysis
Line Charts - forex line charts plot a continuous line connecting closing prices of a currency pair.
Forex Line Charts - How to Read Forex Charts Beginner Traders Guide
Bar Chart - forex bar charts are displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW & CLOSE. The Opening price is displayed as a horizontal dash on left & closing price as a horizontal dash on right.
Forex Bar Charts - How to Read Forex Charts Beginner Traders Guide
The main disadvantage of forex bar chart is that it is not visually appealing, therefore most traders don't use them.
Candle Sticks Charts - these forex candlesticks charts use the same price data as forex 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 to Interpret Candles Charts
The rectangle part of the forex trading candlestick is called the body.
The high & low of the forex candlestick are described as shadows and plotted as poking lines.
Forex Candles Charts - How to Read Forex Charts Beginner Traders Guide
The color of the forex candlestick is either blue or red:
- (Blue or Green Color Candlesticks) - Forex Prices moved up
- (Red Color Candles) - Forex Prices moved down
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: when price moves upwards, color of forex candle is blue: when price moves downward, color of forex candlestick is red.
Candlestick Charts vs Bar Charts - How to Read Charts Beginner Traders PDF
When Forex candles charts are used it's very easy to see if the price moved up or down as opposed to when bar charts are used.
The Japanese candles charts trading techniques also have very many candles formations which are used to trade the Forex Trading Markets. These forex chart patterns have different FX technical analysis explanation & the most common are:
| Reversal Patterns Candles PatternsForex Candles Patterns |
How to Read Forex Chart Patterns Beginners PDF
The above forex candlesticks patterns is what makes the Japanese candlesticks chart patterns popular among forex traders & it is why this type of technical forex chart analysis are the most widely used when it comes to analyzing the FX market. The analysis for these forex charts pattern formations in Forex trading is the same as that one used in stocks trading.
