Forex trading charts help analysts to derive vital clues about the Fx market. Not only analysts but beginners can also study these charts to find entry and exit marks. Forex Trading Charts are looked to get the pertinent information regarding price deals and trends of the Forex market. The three types of charts used for the Fx Trading are Japanese Candlestick chart, the bar chart and the line chart. All the charts display price information vertically on the right side and time is shown horizontally on the bottom side of the chart. Let’s see all the Forex trading charts wrote Fxstay team below but first open you MT4 trading platform to see Forex charts
Forex Trading Charts Difference
Line Forex Chart
The first is the line chart. It is the simplest chart tool among all the charts. In this chart, user can track the price of currencies from one closing value to the next closing value. The information from this chart suggests the development of any specific currency pair over a certain period of time. Example of a line chart is shown in the figure below.
Bar Forex Chart
A bar chart represents opening price on the left hand side of the chart and the closing price on the right hand side. Prices are shown by the horizontal lines. Bar charts are called “OHLC” charts because the information shows “Open High Low Close” stages in a trade. Example of a bar chart is shown in the figure below.
Japanese Candlestick Forex Chart
The most popular chart is the Japanese Candlestick Chart that is similar to the bar chart. System is same in both the charts but the candlestick chart looks nicer because of the use of more graphics. The vertical line represents the lowest at the bottom and the highest at the top of the chart. The difference between both the charts is that the Japanese Candlestick Chart has a block positioned at the center of the chart. Example of a Candlestick chart is shown in the figure below.
This block represents the space between the opening and the closing price of any currency pair. Increasing prices are shown by the white, blue or green colored block and decreasing prices are shown by the black or red colored block. Most traders favor the Japanese Candlestick Chart because it easier to read and interpret. Don’t start seeing the candlestick chart if you learn forex trading as a newbie because it may appear difficult to you so start with the line charts if you are a beginner.
With the help of these charts you can find the best time to open or close a position. If you see any currency rising then closely monitor to get a good deal. You can access the charts easily on the internet. If you find these charts difficult to read and interpret then there are many tutorials available online to help you. You can also get help from the site you are registered with or you can join a Forex training program. You should also follow some tips to become a successful trader.
Notice the important aspects
You should look at the charts daily if you are an investor and see the charts on hourly basis if you are an intraday trader. Notice the price every important moment.
Use the information correctly and timely
If you gathered any information today then it may or may not be useful after few days. So if you see any currency pair at its lowest then don’t waste time and act on this information with in time because golden moments don’t come again and again.
Understand the Forex Trading situations
If the price of your opened position falls below the moving average of the 60 periods then close the position.
Reading and interpreting the charts and following the tips, you will earn profit on your opened positions.