Different Types of Forex Charts
The chart is basically used to show the display visual mode of the currency price. There are three main charts used in the Forex Market they are as given below:
- Line Chart
- Bar Chart
- Candlestick Chart
The Line Chart is simple to read it is called the simple line chart draws a line having one closing price to the next closing price. It shows the general price movement of the currency pair over a period of time.
The Bar Chart is quite difficult to read it works the same as the candlestick chart. A bar chart shows the opening and the closing price as well as the highs and lows. It will allow the trader to see the price range over a period of time.
Candlestick chart is also called as the Japanese candlesticks. Candlestick chart shows the price high to the low range with a vertical line pattern. It will show the same price information as the bar chart but in graphic format.
It will help the trader to visualize the bullish and the Bearish candle by displaying the bodies using different colors.
However, In the candlestick chart, the larger block represents the block that indicates the range between the opening and closing price of the currency pair.
In the candlestick Chart, the filled blocks are represented in Black Color. In our filled body the top represents the opening price and the bottom part of the candle is called the closing price.
If in case the currency price is higher than the opening price then the middle body of the candle will be hollow or unfilled.