Basic Types of Forex Charts and How to Read Them

Here we explain you three type of inclusive and easy-to-use live forex chart that tracks the movements of thousands of currency pairs in the global Forex market. In Forex there are three types of charts:

  1. Line Charts
  2. Bar Charts
  3. Candlestick Charts

Now, we’ll explain each of the forex charts, and let you know what you should know about each of them.

Line Charts: – This is one of the most easiest chart in forex. It represents a curve which is formed from one closing price to the next closing price. Line graph is usually applied in the graphic method of forecasting. This type of chart helps to recognize patterns and build the most precise levels of support and resistance. Other charts are not suitable for this purpose.

Bar Charts: – Bar chart is a modified form of Line chart and also more complex. It shows the opening and closing prices as well as the highs and lows. These open, high, low and close, sometimes abbreviated OHLC (Open High Low Close).

Candlesticks Charts: – Candlestick charts show the same price information as a bar chart, but in a prettier, graphic format. Candlestick bars still indicate the high-to-low range with a vertical line. A candlestick chart is a style of financial chart used to describe price movements of a security, derivative, or currency. Each “candlestick” typically shows one day, thus a one-month chart may show the 20 trading days as 20 candlesticks.

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Author: Mark Burg