Forex Charts

Written by ForexCult Team
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Forex Charts In the following article, we are going to discuss the types of forex charts. Keep in mind that if you haven’t took the time to learn about the fundamentals and the basics of the forex market that you should take the time to read over them and get acquainted with them before you take a move to forex charts. The reason that I say that is because you need to make sure that you are learning everything in an order so that you don’t get mixed up and confused when you move to another topic of the forex markets. Different Types of Forex Charts When it comes to forex charts there are three different types of forex charts that are known to be the most popular. Among the most common forex charts you will find the line chart as well as the bar chart and also the candlestick chart. In this article I am going to tell you about each one of these charts so let’s get started with the line charts. When you look at a line chart you will see that there is one simple line that is drawn from the closing price to the next actual closing price. When the two prices are attached together by this line you will be able to see the actual general movement of the price of that particular currency pair which takes place over a certain period of time. When you take a look at the bar chart which is a type of forex charts, you will see that it to also show the closing prices while it also shows the opening prices as well along with the highs and also the lows. You will also notice that the bottom of the actual vertical bar is used to indicate the lowest actual price that was traded for a certain time period; you will also notice that the top of the bar is going to show the highest actual price that has been paid. So basically, you will see that the forex charts that are bar charts are known to show the trading range as a whole. However you should also keep in mind that the horizontal hash that is located on the left side is used for the opening price and in turn the horizontal hash that is located on the right side is used for the closing price. Forex Charts and Candlestick Charts As you can probably tell by now there is three major types of forex charts that are used in the forex market, the last one is known as the candlestick chart. You will notice that this type of forex charts is known to be like the bar chart because it shows the actual same information, however you will find that information in a much prettier format that is graphic. The actual high to low range is indicated by a vertical line on theses types of forex charts. However you should note that the larger block that can be found in the middle of the chart is used to represent the opening as well as the closing prices. If you notice that the block is colored in you will know that the currency actually closed at a lower price than what it opened at and if you notice that the block is white or unfilled that will mean the closing price of the currency was in fact higher than the opening price. When it comes to the candlesticks charts you will find that there are many advantages of these forex charts. The first advantage that you will have is that it is very easy to understand and interpret and they are actually a nice place for a starter to actually take their first steps in trying to figure the chart analysis out. The second advantage that you will have is that they are actually easy to use because of the fact that you are able to note right away with your eyes what the chart is trying to tell you. Another advantage that you will have is that the candlestick forex charts are known to have nicknames that are easier to remember when it comes to what the actual pattern means. Another advantage that you have is that these types of forex charts are known to be good at being able to identify the turning points of the market. Now that you have taken the time to learn about the forex charts you need to find which one you are able to understand better.