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Forex2u :: View topic - TYPES OF CHART IN FOREX MARKET

TYPES OF CHART IN FOREX MARKET

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JacqStone
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Joined: Jul 27, 2011
Posts: 134

Posted: Wed Oct 19, 2011 7:53 am Post subject: TYPES OF CHART IN FOREX MARKET

There are generally three types of chart in the Forex market: the Line chart, Bar chart, and the Candlestick chart. A line chart is the most basic type of chart. It is plotted by connect all the closing prices for selected period. A bar chart is different with line chart. Besides closing price, bar chart also contain information about the opening price, high and low price. The opening price is always not so important for analysis. The high price in the price bar structure is the highest price of the particular bar time period while the low price is the lowest price. The candlestick chart was developed in Japan around 1750. The candlestick chart is similar to the bar chart, which also consist of four major prices: high, low, open, and close. However, candlestick chart has graphic format which is easier to interpret. Candlestick chart is also easier to identify the market reversal trends. Therefore, candlestick chart is the most popular chart in use. The body of the candlestick bar is the range of opening and closing price. If the closing is higher than the opening price, the body is green colored. The body is red color for the inverse. However, the color of the body may not be the same. It may differ with another trading platform. YOU CAN COMPARE THE CHARTS HERE IKO Forex Limited - THE BEST FOREX ASIA

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