Most of the time a trader is in contemplation of the schedule of currencies in the Forex market. Thanks to a visual display of price fluctuations for a specific time period the most detailed and convenient for perception information about the price movement reaches a trader.
Forex market charts often use multiple price values, such as the opening and closing prices, the minimum and maximum prices. Such a number of variables allows for more detailed assimilation of information, to convey all aspects of the market.
At the moment there are a huge number of graphical solutions to reflect price fluctuations. The MetaTraider4 platform, which is most often used in the Forex market, contains 9 of them. But the main can be attributed only to three - linear, chart bars and candlesticks.
1. Linear. The easiest currency chart on Forex. It is built using one type of price, often the closing price. In fact, it simply conveys the price movement in only one range. He is very fond of beginners for his visual lightness. But, they are not used by professionals, as they contain too little additional information. No good strategy can work only on a linear schedule.
2. Bars. A more complex system consisting of vertical and horizontal lines. Where each line is responsible for one of four prices, together form one bar. It’s a very informative tool, but the most difficult to understand. Used everywhere, but only by those who have managed to adapt since sometimes it’s difficult to figure out a situation there even for experienced.
3. Japanese candles. It is perhaps the most common or at least one of the most common types of online charts in the Forex market. It represents rectangles with additional segments; visually similar to candles with a wick. Such a chart of currencies clearly reflects all four types of prices.
If the candle is shaded - it signals the growth of this course, if it is empty - a decrease. Due to the color differentiation, the graph is better absorbed, while not lagging behind the bar chart.
Real Forex market charts are available online for everyone. And the trader can use any or several at once. But experienced traders always highlight their favorite style and work only with it. Therefore, each newcomer at a certain stage should also try to choose his own favorite.
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