For trading successfully, studying and analysing updated and accurate forex charts are of great significance. Be it technical or fundamental, accurate speculations can only happen through the use of charts. A price chart depicts the market story by highlighting the possible trend, the weakness, the strength and the emotion. A chart is one of the main aspects in forex trade. It gives an objective understanding of the price, fashion and trend that the growing market is using. It helps gauge improvement and downturn of the market as well.
There are various charting forms and each is unique to its own application and makes forex trading strategy easier to comprehend. It requires to be used in combination with a good plan, risk management and overall trade management.
We are sharing the 3 most common charts that would give the traders a basic idea on how the market works and the kind of market demand. Based on the forex trading tools these charts are the best way to represent the market figures.
ü Line Charts: This is the oldest chart type. For larger time frames, this chart is the ideal one to use. If trending needs to be done for a time frame like monthly improvements or weekly trade patterns and even daily curves, then this is the ideal chart to plot on. This line chart is easy to use and understand and we aim at providing simple understanding by closing on each period with a dot. Later on these dots are joined together to form a straight line, or a line above or below this static line. The improvement trend is well explained and understood and this chart considers the larger values. For trend identification this is possibly the best chart form. However, for a detailed analytical case or presentation this chart is not too helpful.
ü Bar Charts: Taking the line chart to the next step is the bar chart. The popularity of the bar chart initiated when computer presentations started. Each trader is shown the price comparison in each period individually. The bar chart includes bar as the standing point. Now the comparison range for each of these bars is either high or low. The same is completed by closing and opening values. For short term investment and comparison of different product under that, this chart is ideal. The range can be shown with smoothed line against each value. At GoLearnForex we aim at providing the traders a graphical comparison of the market and hence use of this chart is useful.
ü Candlestick Charts: The most popular chart by far is the candle stick chart. Very similar to the bar chart concept, the only difference between the bar chart and candle stick chart is the fact that this candle stick chart provides a detailed explanation on the substances used. It gives an open and easy understanding on high, low, open, and close market prices. Easy to comprehend this chart has gained wide popularity amongst the traders.
We offer all 3 varieties of charts and the same need to be used in the forex trading platforms. We also guide on the correct chart usage and this makes trading even easier.