Forex market charts is a tool which shows or displays the market analysis. So knowing this tool is very important for every forex exchange trader as the charts show all buying and selling activities in the market.
We shall take a look at the 3 most known forex charts: line chart, bar chart, and candlestick
It is the simplest of all charts. It is a line showing or indicating the last price of a chart period. This can give the trader an idea or hint of how the price has changed in market over time. Therefore, they
can track its closing prices accurately.
Unlike the line chart, the bar chart does not only shows the closing prices but also depicts the opening, high and low prices of a certain period. The graph is made up of a right and left dash, which shows the closing and opening prices respectively and a vertical bar showing the currency’s low and high prices (trading range). They are also called the OHLC charts in reference to the Open, High, Low and Close values of the currency under consideration.
They are the most popular charts among Forex traders. These charts looks like bar charts but they only present the price information in an aesthetically pleasing graphic format. It also focuses more on the opening and closing prices of the trading period. Besides, unlike the line chart, which shows the closing prices, it charts the opening, high, low and closing prices of a currency pair over each period using “candlesticks.” The candlestick’s height depicts the high-low for that period while its width shows the difference between the opening and closing prices.