The 3 Types of Forex Trading Charts
There are 3 common types of Forex Trading Charts namely;
- Line Graph
- Bar Chart
- Candlestick Chart
Line Graph
A Line Graph is a type of Forex Trading Chart that plots only the closing price of any currency pair for a given time frame. This type of chart filters out all the noises made by price action and plots only a line connecting the closing prices attained from exhibited price action. Below is an image of a Line Graph for the 4H (4 Hour) EURUSD Chart.
Bar Chart
The Bar Chart is an OHLC type chart. OHLC meaning Open, High, Low, Close. the close price of any Bar against price and time on a chart. Each bar represents the price action of any specific time period either M1 (One Minute Chart) over or the MN (Monthly Chart) depending on the chosen time frame. Below is an image of a 4H (4 Hour Chart) of the EURUSD Currency pair.
Candlestick Chart
The candlestick chart was introduced by the Japanese rice trader Homma and was made known to the west by Steve Nison. The Candlestick Chart shows the Open, High, Low, and Closing prices of a currency pair.
The only difference between a Bar Chart and a Candlestick Chart is that in a Bar Chart there is no hollow or fill while on a Candlestick Chart there is a filled real candle body that makes for easy recognition of either a bullish or a bearish move.
There are lots of Candlestick Charting Techniques that have been incorporated into Forex Trading System taking advantage of the volatility of the currency market with very outstanding Win Rates.
In in my previous blog post titled My Best Forex Trading Strategies and Techniques I discuss in great detail how I use Candlestick chart patterns to make trading decisions. Below is an image of a 4 Hour Candlestick chart of the EURUSD currency pair.
Hope you found this post helpful, looking forward to your opinions and comments, I love reading them. As always do not hesitate to ask any questions you have regarding the Forex. I’ll be glad to help.
Anas Abba
(Forex Coach)
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Anas Abba is an Active Forex Trader and Fund Manager at DigiTrix Fx Firms. His "Crack-the-markets-with-your-mind" Style of trading has helped 100+ of Aspiring Forex Traders all over the world achieve their dreams of Financial Freedom Through Currency Trading. Connect With Anas Abba (Forex Coach) on Google+ or Join His "Schooling Y'all on Forex" Community to get The Hottest Forex Trading Tips, Techniques and Strategies.
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