2. Types of Forex Charts

2. Types of Forex Charts

Due to your daily forex trading future will not escape from the graph, the master chart and understand how the reading of the graph is the thing that should not be ignored. Forex trading without being able to read charts? That is tantamount to run the vehicle without a steering wheel! So enough gas and brake only and we see how it goes.

There are various types of charts commonly used when you trade forex. However, generally speaking forex chart consists of several types:

line Chart

dot Chart 

bar Chart

candlestick Chart

Here is a picture of each chart for GBPUSD currency:

 

For graphics, we will use an online chart of Netdania (www.netdania.com) in the sample and the image display. You can see the chart above on the following link: http://www.netdania.com/ChartApplet.asp

If the first days of school we are familiar Bar Chart and Line Chart, and candlestick dot may sound familiar to you. The bad news, you'll use throughout this school Candlestick.The good news, it is not difficult to learn.

There are also some other custom graphics which is rarely used by novice traders.Several types of graphs designed to predict the boundaries of price movement (support and ressistance) and others are used to simplify the movement of certain currency fluctuations. Do not worry, even without mempelajadi science chart like that even you can make a profit on forex trading. Sooner or later you will later learn that the greatest determinant of profit is on the mental attitude that is ready and discipline.

The bar chart is more often used by American traders in analyzing currency movements.While Asian and European traders often use Candlestick in technical analysis. For Dot Chart Line Chart and its use is limited to a particular environment. This is due informai submitted on line charts and dot charts are not as complete as Candlestick and Bar Chart.

Candlestick itself other than to inform the price movement at certain hours, the reading is much easier due to add color-chart graph. Thus you no longer need to distinguish whether the chart is being analyzed is a graph chart up or down.

The next lesson we will learn how to read this Candlestick. A chart that was not known in the everyday world but very common in Forex.