Line Charts
A line chart is simply one that draws a line from one closing price to the next closing price. It is easy to see the trend of price movement over time when a line is drawn across the points.
OHLC Charts
An open-high-low-close chart (or simply bar chart) is a type of chart which simultaneously shows the opening prices, as well as the highs and lows. The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid.
Candlestick Charts
These charts are a sophisticated form of the bar chart showing the data in color for more clarity. Green indicates that the price closed higher than it opened. If the price closed lower than it opened, the candlestick would be red
Trendlines
A trendline predicts the general direction in which the currencies are going. The upward or downward direction of the trend line is determined by connecting the lowest or highest price points over a time period. Trend lines are popular with technical analysis but are generally used in conjunction with other charts patterns.
Triangles
The triangle Forex chart patterns are derived from the movement of the price bars and shown as a horizontal line against a trend line. When a peak breaks the trend line at the top (ascending) trend line, go long (buy). Conversely when a peak breaks a downward trend line (descending) it is time to go short (sell).
There are many more Forex chart patterns. These are the 5 most commonly used charts in Forex trading. Perhaps you only use one or two Forex charts regularly but in order to have a full knowledge of Forex trading you should at least be familiar with the others.
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