Using charts in forex trading an essential concept which one needs to follow while trading. Giving you a total picture of price history over a time period, the Forex trading charts can also describe the history of the volume of trading in forex market. Traders use forex charts as the primary instrument which follow the price movement over specific time frames. The prime focus of this page is to offer info on charts in online forex trading.
The main purpose behind using forex trading charts is to identify and evaluate price trends, so as to make profits from the future movement of prices. There are three main charts in forex trading- line chart, bar chart and candlesticks chart.
In the line chart, the movement of the prices is shown by drawing a line. Line charts define only the prices which are closing over a definite period of time. You will not get details about the trading range such as the high, low and opening prices form these charts in forex trading online. They are a distinguishing factor of the trend of the currency price but provide little supplemental information.
One of the most popular charts in online forex trading, the bar charts consist of a series of vertical lines representing each data point. These vertical lines symbolize the high and low for the trading period, along with the closing price. But one can fine plenty of information about the price movement of the currencies in these forex trading charts. They let you have a better visualization of the market movements.
Candlesticks charts are one of the other main charts in forex trading. Closely related to bar charts, these charts also contain vertical lines showing the period’s trading range. The body of the candlestick shows the opening and closing price. A blank or while body means that the opening price is lower from the closing price. But if the opening price is higher than the closing price the body is filled with color. The upper shadows stand for the high of the price, while the lower shadow reflects the low of the price for the time span selected by the trader for his Forex trading chart. With all that said you are certainly eager to start trading and to begin you’ll need a trading account with a good and reliable broker such as Juno markets opinions, and you are ready to trade. You can use the demo account to get a feel and once you feel more comfortable in trading you can switch to real money.