Different types of forex charts

8 March 2018

And so you are here. You have opened your trading account (maybe a demo one) and you are ready for some action… or so you want to believe.

But before you move forward with placing nonsense market orders and losing a few bucks to “feel the emotion”, let’s take a moment for the sake of education and learn something about Forex charts. Did you know there are three types of charts? Well, now you do.

Line Chart


I mean… it does not get more simple than it. A line that shows how a pair moves in a certain period of time. Not rocket science, I get it. But it is out there and at least knowing it is called “line chart” won’t hurt.

And by the way, if you are trying to really simplify your working desk, using line charts can be a good place to start. Long-term traders who are not so worried about opening and closing prices for an specific timeframe can take line charts on.

Bar Chart


The bar chart is one more step to greatness. If you are not a “I like colors” kind of person, then this might be the right option for you. Simple, but with enough information to trade.

The bar serves to identify four things in a precise moment: the opening and closing prices, as well as the highs and lows. That is why this type of chart is also known as OHLC charts.

Candlestick Chart


Candlestick charts include with the same information as bar charts, but display it in a more graphic way, which is usually better for traders looking for intuitive tools.

Above and below the candle (real body), you can find the upper and lower shadows, which show the highest and lowest points during that period of time.

The real body is determined by the opening and closing price. If the closing price ends up being above the opening price, the body turns green. If not, the body goes red.

Share:


Related

Is it Easy to Learn Forex? A Comprehensive Guide to Mastering Forex Trading

Is it Easy to Learn Forex? A Comprehensive Guide to Mastering Forex TradingForex trading is a captivating endeavor, promising both active and passive income streams. Yet, mastering forex is a continuous journey that transcends expertise levels, be it a novice or a seasoned trader...

26 Jan 2024

NordFX: Earning the Title of Best News & Analysis Provider for 2023

NordFX: Earning the Title of Best News & Analysis Provider for 2023In a resounding victory, NordFX, a prominent brokerage firm, has been crowned the "Best News & Analysis Provider" of 2023...

22 Jan 2024

Unlock Global Trading Opportunities with Errante

Unlock Global Trading Opportunities with ErranteErrante, the premier online broker, is dedicated to delivering top-tier services and forging long-lasting, trust-based relationships with our clients. Our mission is to enhance your online trading journey...

18 Jan 2024

Three Popular Gold Trading Strategies When Trading Gold CFDs

Three Popular Gold Trading Strategies When Trading Gold CFDsGold, a precious metal revered for its value for centuries, has found its place in the world of trading. Trading gold has become a popular way to invest in the commodity market...

16 Jan 2024

Mega Super Lottery 2023 New Year's Draw: Another $50,000 Drawn

Mega Super Lottery 2023 New Year's Draw: Another $50,000 DrawnSince 2021, NordFX, a renowned broker in the financial markets, has been captivating its clients with the annual Super Lottery, boasting a staggering prize pool of $100,000...

11 Jan 2024

Exploring the Advanced Features of FXTM's MetaTrader 5 Platform

Exploring the Advanced Features of FXTM's MetaTrader 5 PlatformIn the dynamic world of online trading, staying ahead with cutting-edge technology is crucial. FXTM’s MetaTrader 5 (MT5) platform, the brainchild of MetaQuotes Software...

9 Jan 2024

Suggested Forex Nominations

All Nominations 2024