The charts included in the technical analysis on the Forex market help you get the right position. These graphics, which seem mixed at the beginning, will be fairly easy when you start to learn.
Forex charts are the best display that allows you to apply technical analysis tools and decide where to position. With Forex market graphs, you can determine the trend, see the support – resistance points. You can apply analysis tools to get buy – sell signals. In this way, when viewed as a whole, you can give the right buy – sell orders at the right time. Graphics are the greatest helpers of an investor, and every prospect will benefit.
You can set the time zone you want in graphics and you can make buying and selling decisions from a broader or narrower window. You can get detailed information from annual graphs to instant graphs. Forex charts can be selected according to the analysis method you want to use and you can get the information you want as a result of the analysis.
There are basically three types of charts on trading platforms used in the Forex market. These graphs are called candlestick, line and bar charts. We want to handle these graphics one by one:
What is Candle Graph, How to Read?
The most common chart type on the Forex market is candlestick charts. They give more information than the other chart types and have more details from the visual point of view. Candlestick charts are used more than others because of the detailed information they give. The information they provide is the direction of the parity, the opening – closing price, the highest – the lowest price.
In Candlestick charts, each candlestick represents the specified time period. So if you have chosen a 5-minute chart, a candlestick will give you 5 minutes of information. It is a chart type discovered by the Japanese and gives information about the supply-demand on the market.
Candlestick charts show the acceleration and movement of prices for a given time period. In the picture above, you can see how to read a candle chart. You can mark rising and falling with different colors. Candlestick charts covering a week or more often represent a 24-hour period. The information they provide is the opening – closing price of the day they represent, the base – ceiling price reached within that day. At the same time you can read the knowledge that the price has risen or has fallen.
What is Bar Graph, How to Read?
Simplified Candlestick charts are called bar charts. The images are similar to candle bars; But they do not read so easily. They give the opening – closing price, the base – ceiling price and the direction of the parity as they are in the Candlestick charts. The line to the left of the bar graph gives the opening price of the parity; The line on the right hand side gives the closing price. The upper bar of the bar bar gives the highest value while the lower bar shows the lowest value.
Bar charts also give you the information provided by Candlestick charts. Reading bar graphs and bars is not as easy as Candlestick charts. They may also appear more complex because they are in line. In bar charts, the lines on the right and left of the bar are very important. The bar on the right of each bar means that the price has fallen below the line on the left. If it is above it, it is elevated.
What is Line Graph, How to Read?
The simplest and most basic chart type is line charts. The only information they give is price information. They are generally drawn over the closing price. At the same time, if your forex trading platform is slightly more advanced, line graphs can be created on opening and base-ceiling prices. When you draw using different data, the line graphs give only information. Because of these features they are not used too much.
You can learn how to do forex analysis, how to read graphics, and how to make buy / sell orders by using free trainings. Especially by taking advantage of training videos and trial accounts, you can comprehend the logic of buying and selling transactions in the most accurate way.