We usually know about three types of charts. It is very important to about those chart before going to trade. A brief description of these charts are given below. If you follow our signal you need not to folllow the charts. Just follow our signal and trade for profit. There are Three Types of Charts that are as follows.
- Line chart
- Bar chart
- Candlestick chart
Line Charts: A line chart is a chart that draws a line from one closing price to the next closing price.It is easy and symple. When strung together with a line, we can see the general price movement of a currency pair over a period of time.The period may be five munites, fifteen munites or half an hour or more.
Bar Charts: Bar chart is an important chart in understanding forex trading. A bar chart is a bit complex comparing with line chart. It shows the opening and closing prices, as well as the high and low prices of a pair. The bottom of the vertical bar indicates the lowest traded price that is determined for that time period, while the top of the bar defines the highest price paid up. The vertical bar itself indicates the currency pair’s trading range as a whole.
The horizontal hash on the left side of the bar is the entry price, and the right-side horizontal hash is the closing price of bar chart. We can easily say that bar is simply a one portion of time, it may be one day, one week, or one hour. When we see the word ‘bar’ going forward, we may be sure to understand easily what time frame it is referencing.
However bar charts are also called “OHLC” charts, it is because they defines the Open, the High, the Low, and the Close for that particular currency.
The noticeable points of a bar chart is given below.
Open: The small horizontal line on the left is the entry price
High: The top of the vertical line indicates the highest price value of the time period
Low: The bottom of the vertical line indicates the lowest price of the time period
Close: The small horizontal line on the right is the closing price
Candlesticks Charts: Candlestick chart is popular in forex trading. Candlestick chart is that the graphical portrait of bar graph, it looks nice. Candlestick bars indicate the high-to-low pirce of forex pairs with a vertical line. However, in candle holder charting, the larger block within the middle indicates the range between the opening/entry and closing/exit prices. Usually, if the block within the middle is stuffed or colored in, then the currency pair closed lower than it opened. The purpose of candle holder charting is strictly to function a visible aid the forex traders so they'll get the most effective chance of forex, since the precise same information seems on an OHLC bar graph.
Benefit of Candlestick Chart: Candlesticks are easy and lucid to interpret and simple to know, and are a suitable for beginners to start out and figuring out forex chart analysis. Candlesticks are very easy to use! Your eyes adapt soon to the knowledge within the bar notation. Plus, analysis shows that visuals facilitate with learning, therefore it'd facilitate with commercialism as well! Candlesticks and candle holder patterns have cool names like the “shooting star,” that helps you to recollect what the pattern suggests that. Candlesticks are smart at distinguishing market turning points – reversals from Associate in an uptrend to a downtrend or a downtrend to an uptrend. If one takes our forex signal he or she need not to think about the chart. We prepare and analysis every data for him and give singal that is accurate and relaible.