Sunday, February 25, 2018

Basic of Forex Charting: 2 Commonly Used Charts

December 29, 2009 by  
Filed under Basic Forex Charting

The most commonly used charts to analyze currency movement are Bar Chart or Candlestick Chart. Although they convey similar information, they display these information differently.

Bar Chart

Bar charts uses to show, a graphic form, information of the open, high, low and close. These are important for analyzing price information. Below is an example of a bar chart.

Forex Bar

Each bar represents the open, high, low and close of the price movement in a certain time period. The period is set by you and you choose the period ranging from one minute, one day, one week or one month. Using a series of bars, a history of price movements will available for you to analyze and you can predict price movements.

Forex Bar Chart

Candlestick Chart

Candlestick charting shows the same information as the bar chart, the high, low, open and close. The difference is the graphical display of these information. The color of the candle will be different as that depends on the closing price. When the closing price is lower than the opening price, the color of the candle’s body will become dark. So when the candle’s body is in lighter color, that means the closing price is higher than the opening price.

Forex Candle Stick

Forex Candle Stick Chart

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