Forex charts are the heart of Forex trading. With this tutorial, you will be able to understand, identify the chart categories, their patterns and trends clearly.
- What are forex charts?
- Why charts?
- Understanding of chart patterns
- Identifying different market trends
There are three types of charts in Forex trading. They are as follows.
- Line Charts
- Bar Charts
- Candlestick Charts
This is a simple chart that shows the movement of a currency pair from one closing price to the next closing price. Line is drawn connecting those two price points, making the movement the change of the currency pair.
Bar chart is more descriptive than the Line Charts. It shows both the opening and the closing price (indicated with a horizontal short line) as well as the lowest traded price and the highest price paid (bottom of the bar and the top of it respectively).
Below is the bar chart that can be seen in both bullish and bearish trends.
Candlestick charts have no difference other than the appearance. They give the same information as the bar charts. But in a more appealing way.