How To Read Charts In Forex?
Forex market charts are a tool that 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 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 showing the last price of a chart period. This can give the trader an idea or hint of how the price has changed in the market. Therefore, they can track its closing prices accurately.
Unlike the line chart, the bar chart shows not only the closing prices but also depicts the opening, high and low prices of a certain period. It made the graph 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). It also called them the OHLC charts about the Open, High, Low, and Close values of the currency under consideration.
They are the most popular charts among Forex traders. These charts look 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.