Thursday, 3 March 2011

Popular Forex Charts

By Kevin Osh Platinum Quality Author

Line Charts are the most basic chart showing the movement of price with a single line. The line is drawn from one closing price to the next. There are more advanced line charts that will plot the high, low, and close.
Bar charts are slightly more complex. A bar chart will show the opening and closing prices, as well as the high and low of the bar. The vertical part of the bar shows the range for your time period, then there is small horizontal bars sticking out of the main vertical bar. These small horizontal bars display the open and close for that bar.
Candlestick charts show the same things as a bar chart but they just look a lot more appealing. Candlestick bars show you the high, low, open, and close for your time period. Your high and low range is displayed in the vertical line and the open and close are represented by a block (the body) on the candle. These blocks can be changed to whatever color you like to indicate a higher or lower closing price. An example would be price opened high then closed lower so the body of that candle would be painted red, and maybe green if it closed higher. If you have to look at charts a lot they might as well look pretty right!
These are the three main types of charts and I personally prefer to use candlesticks in my trading. They look nice and the charts are visually stimulating. There is also many Candlestick Patterns that are easy to spot when trading with this type of chart, and most of them have cool names!
I have only been trading the forex market for 2 years now. I have learned a lot in this time though. If you like my article why not check out my blog? My blog has lots of great strategies and I keep track of all my trades there!