Types of Forex Charts


One of the most important tools used while trading forex are the different forex charts. Traders use these various kinds of forex charts to look for any patterns in historical price action, so as to forecast a potential move in the future. The prime focus of this page is to study different types of forex charts online. Read on.


Line Charts
The line charts in forex are plotted connecting a single price for a specific period of time. Among the most popular of line forex charts is the daily chart. The majority of forex traders pay attention to the closing price, which they recognize as the most important. But one of the drawbacks of the line charts is that they make it difficult to see the price activity for the balance of the period. It is also not easy to follow the gaps and breakups in prices at joints of trade periods. In spite of such issues, the line forex charts are easy to follow and simple to use.

Bar Charts
Among other kinds of forex charts are the bar charts. These have rectangular bars with lengths comparative to the values that they are indicating. These bar forex charts are very useful in comparing two or more values taken over different time or on different conditions, usually on small data sets. These bars can also be horizontal and have the benefit of displaying the currency range for the selected time period. The advantage of using bar charts is that, these are able to plot price gaps.

Candlestick Charts
Candlestick charts, another type of forex charts online, offers a unique method of charting which is applied by traders and investors to all kind of markets like stocks, options, futures or forex. One glance at these forex charts is enough to gauge the mood of the market, whether it is bullish or bearish. Closely related to the bar chart, the candlestick consists of four major prices: high, low, open, and close


Point & Figure Charts
The point and figure charts are different from other types of forex charts. Devises in the beginning of the last century, their main focus is on the price action in the trading market.

Therefore these kinds of forex charts online have no notion of time. With columns of Os and Xs on the point and figure chart, where each box of O represents a certain price increment, and likewise each box of X representing a price decrement of the same magnitude, the point and figure charts are highly helpful to find the support and resistance.

Reading the above article on different types of forex charts online will give you the right start in forex.

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