What are the 3 Types of Forex Charts? - How Do I interpret Forex Charts?
Types of Forex charts - Interpreting Forex Charts
There are 3 types of charts used in Forex: Line Charts, Bar Charts & Candlesticks Charts.
Line Charts - plots continuous line connecting closing prices of a currency pair.
Forex Line Charts - What are the 3 Types of Forex Charts?
Bar Charts- displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW & CLOSE. The Opening price is displayed as a horizontal dash on the left & closing price as a horizontal dash on the right.
Forex Bar Charts - What are the 3 Types of Forex Charts?
Candlestick Charts - these use the same price data as bar charts (open, high, low, and close). However, they are displayed in a much more visually identifiable way which looks like a candlestick with wicks on both its ends.
How to Interpret
Rectangle section is called the body.
The high and low are described as shadows & plotted as poking lines.
Candlesticks Charts - What are the 3 Types of Forex Charts?
The color of the candle is either blue or red
- (Blue or Green Color) - Prices moved up
- (Red Color) - Prices moved down
Most trading platforms like the MT4, use colors to mark the direction. Colors used are blue or green: when price moves upward, red: when price moves downward.
