What Forex Chart Should I Trade With?

The most popular forex charts in the Forex Market are : Line charts, Bar charts and Candlestick charts.

As a beginner wanting to know which forex chart you should trade with the advantages of the Candlesticks charts are explained below - which makes the candlesticks charts the best choice of forex trading with.

The candles are easy to use as compared to line charts or bar charts.

How to Read Candles Charts

Candlesticks Charts - these candles charts use the same price data as bar charts (open, high, low, and close). However, these candlestick charts are represented in a much more visually identifiable way which resembles a candle with wicks on both sides.

How to Interpret Candles Charts

Rectangle part of the candlestick is called the body.

The high & low of the candlestick are described as shadows and plotted as poking lines.

Candlesticks Charts - How to Read Candlestick Charts for Beginner Traders Guide

The color of the candlestick is either blue or red:

• (Blue or Green Color Candles) - Prices moved up
• (Red Color Candlesticks) - Prices moved down

Most Forex platforms like the MT4 Software, use colors to mark the direction of the price represented using the candlestick. Candlesticks colors used are blue or green colors; when price moves up, color of candlestick is blue: when price moves downward, color of candlestick is red.

Candlesticks Charts Vs. Bar Charts - How to Read Candlesticks Charts

When Forex candlesticks charts are used it's very easy to see if the price moved up or down as opposed to when bar charts are used.