TECHNICAL ANALYSIS- TYPES OF CHARTS

As I said in an earlier writing technical analysis means using charts to trade. Charts show price movement over a period of time.

TYPES OF CHARTS

Line chart

Bar chart

Candlestick charts

Line Chart: line charts draw a line from one closing price to the next closing price, for either a trading period or a trading session. For example let’s say the markets closing price yesterday was 1.9300 and the closing price for today is 1.9635, a line chart draws a line that connects these two closing prices.

Might I add that many line charts can be strung together to give a picture of price movement of a currency pair over a period of time.

Bar Chart: bar chart show more details than line charts. Bar charts show not only the closing price but also the open price, the Forex markets high price and the markets low price of a currency pair for period of time.

The Acronym OHLC is used to represent the bar chart.

O = OPEN PRICE

H = HIGH

L = LOW

C = CLOSE

Candlestick Chart: candlestick charts are like bar charts, they show the open, close, high and low plus they also show more details and candlestick charts are used in many plate forms, use more than line and bar charts.

Thanks for reading.