Forex: Elementary chart types and chart representations

Within the framework of the Technical Analysis, a Forex trader can use different chart types to analyze past price trends and then make profitable forecasts. According to this, trading signals are read from the charts which are immensely important for the trade decision.

your domain name or Most Forex brokers offer very good charting tools, but they are only helpful if the trader uses them properly and can “read” them. For this reason, the most important chart types and presentations are explained in the following section.

A linechart is probably the simplest variant of the different chart types. Because of their simplicity, they are often used in the media. For the Forex trader, however, they are not very strong.

On a line check my reference want chart, only the closing rates are displayed depending on the time interval, simply by connecting the points to a line.

Only the closing prices are shown on the chart. The points thus obtained are connected by straight lines as shown below. Compared to other chart types, there is no significant information that can be used because no fluctuations can be made from the fluctuations.

Bar Chart – important chart type

In comparison to the linecharts, bar codes are already much more meaningful and are therefore used by Forex traders. into view Beamcharts are represented by a vertical beam and two horizontal lines. The opening and closing prices are displayed here. The exchange rate is also displayed, which was highest or lowest during a certain period of time.

The bar has the meaning that the top point indicates the highest price and the lowest point the give visit this page lowest price. The opening price is indicated by the horizontal left-hand line and the closing price on the right-hand side. This allows the whole range of a selected currency pair to be read within a selected period.

Candle Holders – the Most Important Tool for Forex Traders

Candlesticks are characterized by the fact that they have all chart patterns, which are also available in other charts, and at the same time have their own chart patterns and forecasting techniques. In addition, the candlecharts are more suitable than other charts for a variety of procedures, such as tracing resistance / support lines.

at visit their website In East Asia almost exclusively candlesticks are used, whereas they became popular in the USA and Europe. The European traders consider the candle formation isolated as individual indicators. However, such individual indicators have only a hit rate of about 50 percent, which is good, but still does not reach the full potential of the candlecharts. On the other hand, every single candle is considered in East Asia, taking into account the market mood as well as the event before. However, other look at this this method can be abbreviated by connecting to other indicators. It is also advisable to take the trade signals into account only when the prices meet resistance or support lines.

For Forex traders, it is important that they know the individual candle formations. As a rule, these consist of many candles. say go right here Equally important is the observance of the time period. For example, a three candle pattern shows only three candles in the future. Thus, longer formations can also better refer to the future.

Long and short bodies

A long core body shows a high buying or selling activity. The following applies: The longer the core body is, the greater is the buying or selling activity. On the other hand, short core bodies suggest a low buying or selling activity.

However, the colors of the core bodies must also be distinguished: Thus, a white long core body means that there is a high purchasing pressure. The following applies: The longer the white core body is, the higher is the closing price, which is in comparison with the opening price. This is similar to the long black core good extra resources body, which means that the closing price is then well below the opening rate.

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