Learn Forex Trading Charts

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Learn Forex Trading Charts

Types of Forex Trading Charts

In general, there are 3 types of the most popular and used Forex Trading Charts.
They are…

Line Chart

It is a simple forex trading charts based the closing price movement. We can see the forex trading online price movement in two dimensions, Y which is illustrating the currency value, and X which represents the time period.

Bar Chart

Forex Trading Bar Chart show a closing price movement as well as opening price, and also the highest and lowest price, and also the highest and lowest price.

The bottom part of Bar Chart shows the lowest price shows the lowest price, while the up-most part shows the highest price.

The Vertical line shows the price range. While the horizontal line consist of 2 types. The left one is an opening price, the right one is a closing price.

Below is the example:

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Forex Trading Bar chart is also known as OHLC chart because it shows “The Open”, “The High”, “The Low” and “The Close” price.

Example :
(picture will be uploaded soon)

Candlesticks Chart

The Forex Trading Candlestick chart show similar information to the Bar Chart, but the display is more interesting. In candlestick charts, price movements are indicated by a wider bar or stick. If the bar is colored, it shows the closing price is lower than the opening price. In the other word, the price is lowering.

The picture below will explain the difference.

The white stick shows on the opening price which is lower than the closing price. The price is increasing.
The black stick show an opening price which is higher than the closing price.

Illustration

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Candlestick charts in Forex Trading Online can also be indicated in some other colors, such as green and red.

Example:

(picture will be uploaded soon)

The purpose of using candlestick chart is to help and to make the examination of price movement, easier, compared to the Bar Chart. Therefore, forex traders can be easily able to make difference the upper and lower price movement and to determine the highest and the lowest prices.

The Advantage of using Candlestick Chart are: