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Chart Types

By Richard Krivo, Trading Instructor
09 June 2011 22:29 GMT

Student’s Question:

What I would like to know is…are the forex charts always represented by candlesticks? Or is this just a way of describing the trends of the charts?

Instructor’s Response:

Each of the chart types is a way of visually depicting the movements made by price action within the various currency pairs. Depending on the charting package that you might be using, the movement can be represented by Lines, Bars or Candlesticks. Take a look at the three examples below…

These three are the most widely used methods of depicting price movement.

Chart_Types_body_Chart_Type_Comparisons.png, Chart Types

Of these three, candlesticks are by far the most widely used charting format. Traders have found that they provide all the key components of price information (high, low, open and close) with precision and in such a way that it all can be absorbed at a glance.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.
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09 June 2011 22:29 GMT