Forex Trading Charts - Types and Uses

The forex trading chart is a standout among the most important tools for the forex trader. Forex trading charts are at the foundation of forex specialized investigation, which shapes exchanging frameworks in light of considering value developments instead of monetary figures which are the basis of fundamental analysis in forex exchanging. Most forex traders nowadays prefer technical analysis which does not require any exceptional information or training in financial aspects.

Any currency trading chart will demonstrate value developments. Normally you can track these over a variable period of time. You can at the most recent couple of minutes, hours, days or more. Utilizing a graph in conjunction with the mathematical indicators gave by most specialists and diagramming administrations, you can distinguish rising inclinations and patterns that can flag an exchanging opportunity.

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In MT4 Forex trading Charts you can see as many real time charts as you wish, all on one screen, for any currency pair or CFD and for any time period. The following types of charts are available in MetaTrader 4:

1. The Line Chart

A line chart plots the closing money at the end of each forex trading period, which could be anything from one minute to one day, you can set this. These are joined with a line to show the direction of movement. However, a line chart does not tell you anything about what happened at different times during the time period, only the final closing price.

2. The Bar Chart

A bar chart show you four prices for each period: opening, high, low and closing price. You will see a vertical line for each period. The top of the line marks the high and the bottom is the low. A notch on the left side shows the opening price and a notch on the right shows the close. Basically these are at different levels but they could be the same. Either one of them could be the same as the opening or closing price but more commonly they are somewhere between.

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The benefits of the bar chart over the line chart is that it shows you how wide the fluctuations were during the period, giving you an idea of the volatility of the pair at a glance.

3. The Candlestick Chart

This final type of chart gives you all of the same information as the bar chart but in a colored format which many people find easier to take in.

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