Types of Forex Basic Charts
Most traders make extensive use of the chart. Therefore, it is important to have an understanding of the basics of technical analysis.
Previous performance is not a guarantee of future results. Technical analysis is the only tool for trading, even if the analysis is targeted to the target, there is no guarantee of any profit.
Forex Linear Chart
A linear chart is the simplest type of chart. As shown in the EUR / USD chart below, the line represents the closing price for each day. Dates are displayed below the graphs and prices at the side.
The strength of a linear chart is its simplicity. Which provides a regular and understandable view of the price over a given period of time.
Forex Bar chart
An open, up, down, and closing price bar graph for each time period. Bar charts are the most popular chart types.
As shown in the diagram below, above the vertical bars represents the highest traded stock and the bottom of the bar represents the lowest price traded over a specified time period. A ‘tick’ closing on the right of the display bar It is given that the last price the stock determines in this period is the traded time. If the opening price is available, it will be indicated by a tick on the left side of the bar.
Forex Candlestick chart
The candlestick displays open, up, down, and closing prices in a shape similar to a modern daily bar graph, but in a way that mitigates the relationship between opening and closing prices. The candlestick chart is simply a new way of checking prices – they do not include any computations.
The Forex candlestick chart may be in different colors (blue / red, white / black and white, etc.), but the idea is always the same.