Currency Trading Information Channel
The Meaning of FOREX Price Charts and How to Use Them
There is one very important factor that you should consider with great care if you are willing to become a successful, profitable Forex trader. This ever important factor that must be always present in the trader's portfolio, is the ability to read the charts.
The beauty of FOREX charts, as opposed to charts used for, say, daytrading stocks, is that they are pretty easy to interpret and use. They're a reflection of a slower-moving, stable economy (the one of a country) compared to the future and daily drama of company reports, Wall street analysts and shareholder demands.
And, unlike stocks, currency charts rarely spend much time in tight trading ranges and have the tendency to develop strong trends (even though the FX market may be volatile, it's more predictable). And, rather than tens of thousands of stocks to analyze, you only have a few mayor currencies to trade.
The most common types of price bars, used in FOREX trading, are the Bar Chart and the Candlestick chart:
Bars Charts - Price bars are a linear representation (a line)of a period of time. This enables the viewer to see a graphic representation summarizing the activity of a specific time frame. For example they can be one minute or five-minute time intervals depending on the system you are using. Each bar has similar characteristics and tells the viewer several important pieces of information. First, the highest point of the bar represents the highest price that was achieved during that time period. The lowest point of the bar represents the lowest price during the same period. Regular bars display a small dot on the left side of the bar which represents the opening price of the period and the small dot on the right side represents the closing price of the period.
Candlesticks - Japanese Candlesticks, or simply Candlesticks as they are now known, are used to represent the same information as Price bars. The only difference is that the difference between the open and close form the body of a box which is displayed with a color inside. A red color means that the close was lower than the open, and the blue color represents that the close was higher than the open. If the box has a line going up from the box it represents the high and is called the wick. If the box has a line going down from the box, it represents the low and is called the tail. Many interpretations can be made from these "candlesticks" and many books have been written on the art of interpreting these bars ( Visit: http://www.1-forex.com).
So, the main thing to keep in mind between the two types of price charts is this:
Candlestick charts are similar to bar charts in that the top tip of a vertical line represents the high and bottom tip represents the low. However, market activity between the OPEN and the CLOSE is represented differently by the use of candlestick bodies.
Because of their colored bodies, candles provide greater visual detail in their chart patterns than bar charts. Which is why many experts recommend you become intimately familiar with Candlestick charts.
Omar Vargas is a freelance writer with articles published in a number of places. You can learn more about Forex trading and its great advantages over other kind of business at this useful website: http://www.1-forex.com
MORE RESOURCES updated Thu. December / 05 / 2019
Stories of have-a-go forex trading heroes belie a quiet market Financial Times
Cryptocurrency Glossary: Using Forex Trading Concepts to Invest in Digital Currencies - Captain Altcoin
Cryptocurrency Glossary: Using Forex Trading Concepts to Invest in Digital Currencies Captain Altcoin
All You Need to Know about Automated Forex Trading Robotics and Automation News
Top 5 Reasons Why You Should Start Forex Trading Business Review
3 strategies for how to trade forex ForexLive
What is Forex Trading? Complete Beginner's Guide Crypto News Pipe
Why are forex trading signals important? ForexLive
How to Make Money on the Forex Market BBN Times
How to Analyze Data for More Profitable Forex Trading Global Trade Magazine
The Best 5 Tips for Forex Trading Beginners - VENTS Magazine
Pound Sterling Powers to 7-Month Best vs. Dollar and Euro Pound Sterling Live
Currency Traders Near End of a Dismal Decade Yahoo Finance
Forest Hill stockbroker convicted for bogus currency trading scheme Queens Daily Eagle
US, China trade negotiations on track, but countries remain at odds over value of farm purchases - ForexLive
US, China trade negotiations on track, but countries remain at odds over value of farm purchases ForexLive
Central bank trades prompted rival FX traders to share info Financial Times
China Drops Below Canada as Currency Trading Plunges by 12.3% The Epoch Times
Use of Smartphone for Forex Trading in India Industry Global News 24
Govt urged to embrace online forex trading The Zimbabwe Standard
Windsor Brokers Review • Benzinga Benzinga
Currency trading floors seem to have glass ceilings for women looking to move into management - The National
Currency trading floors seem to have glass ceilings for women looking to move into management The National
Global stocks turn higher on renewed trade hopes Daily Inter Lake
Managing Emotions in Forex Trading Finance Magnates
Forex trading on mobile apps in India Daily Pioneer
Pound soars as traders bet on Tory majority The Corkman
The evolution of FOREX in the 21st century Flux Magazine
Japanese Yen Trading Flat In The Asian Session Action Forex
AUD/CAD 4H Chart: Tests 0.9022 Area Action Forex
4 Forex Trading Tips for Beginners FXDailyReport.com
Ion Group buys currency software supplier MarketFactory Financial Times
AUD/NZD: Bullish Momentum is Expanding DailyForex.com
Global shares rise on optimism about US-China trade deal News 12 New Jersey
Forex Trading for Beginners Yahoo Finance
GBP/USD Forex Signal DailyForex.com
AUD/USD Forecast: Continuing to Find Buyers DailyForex.com
What Is Forex Trading and How Does it Work? - RushPRnews.com
How To Start Out In Forex Trading Latin Post
Is forex trading profitable? Capital.com
Top 8 Mobile Apps for Forex Trading Techzone360
Retail forex trading set to go live today Economic Times