For trading forex we are mostly dependent on technical analysis and technical analysis is completely impossible without forex trading chart. There are three types of chart.
i. Line Chart. ii. Bar Chart. iii. Japanese Candlestick Chart.
Line Chart: Line chart is most basic chart for for forex technical analysis. It is formed by the closing data according to time passed. It makes a simple line of price action.
In above picture you see a line chart of GBP/JPY in hourly time frame. It is always show the latest price of the currency pair over a given period of time(M1,M5,M15,M30,H1,H4,D1,W1,MN). You can't find the open,high,low of price. You you will see only close of price rate.
Bar Chart: Bar chart is formed by combination of vertical bars. Each bar defines a certain period of time. If you time frame is one hour chart then every single bar shows the data of price movement for the last one hour. Below chart is a bar chart and it is showing the price movement of the past time hourly of GBP/JPY currency payer.
Every single bar has four levels.
i. Open level
ii. High level
iii. Low level
iv. Close level
Japanese candlesticks chart: Last one is Japanese candlesticks chart. Most of the traders use this chart. It is same as bar chart but it gives more clear information of price action. It creates wide long body while market is in up trend or down trend and some times you will find no body or little body while market is in ranging or simply side way moving. Below is the basic candlesticks chart of GBP/JPY in one hour time frame.
Every single candlestick has four levels.
i. Open level
ii. High level
iii. Low level
iv. Close level
Have you read my previous article on Forex market basics?
If you are from Bangladesh, You can participate on my forex trading course in Bangladesh.
i. Line Chart. ii. Bar Chart. iii. Japanese Candlestick Chart.
Line Chart: Line chart is most basic chart for for forex technical analysis. It is formed by the closing data according to time passed. It makes a simple line of price action.
 |
| Forex basic line charts |
Bar Chart: Bar chart is formed by combination of vertical bars. Each bar defines a certain period of time. If you time frame is one hour chart then every single bar shows the data of price movement for the last one hour. Below chart is a bar chart and it is showing the price movement of the past time hourly of GBP/JPY currency payer.
 |
| Forex bar chart basics |
i. Open level
ii. High level
iii. Low level
iv. Close level
Japanese candlesticks chart: Last one is Japanese candlesticks chart. Most of the traders use this chart. It is same as bar chart but it gives more clear information of price action. It creates wide long body while market is in up trend or down trend and some times you will find no body or little body while market is in ranging or simply side way moving. Below is the basic candlesticks chart of GBP/JPY in one hour time frame.
 |
| Forex Japanese candlesticks chart basics |
Every single candlestick has four levels.
i. Open level
ii. High level
iii. Low level
iv. Close level
Have you read my previous article on Forex market basics?
If you are from Bangladesh, You can participate on my forex trading course in Bangladesh.
No comments:
Post a Comment