What is Candlesticks Charts?

Types of Forex Trading Charts

There are Three types of forex charts: Line forex chart, bar chart and candle chart.

Candlesticks Charts - the candles charts use the same price data as forex bar charts (open, high, low, and close). However, they represent the charts in a much more easily identifiable way which resembles a candle with wicks on both ends.

How to Read Candles Forex Trading Charts

Rectangle part of the candlestick is called the body.

The high & low are described as shadows & are plotted as poking lines.

Different Types of Forex Charts - Types of Forex Charts and How to Read Charts

The color of the candle is either blue or red

• (Blue or Green Color candle) - Forex price moved up
• (Red Color candle) - Forex price moved down

Most forex trading platforms like the MetaTrader 4 platform, use colors to mark the direction of the forex price. Colors used are blue or green: - green candle when price moves up, red candle stick when price moves down.

What is a Line Charts?

A line chart in Forex draws the closing price of a forex pair & connects this closing price to the closing price of the next trading period hence forming a continuous forex line chart that plots the movement of forex price movement.

Line Chart - draws a continuous line connecting closing prices of a on the forex price chart.

Different Types of Forex Charts - Types of Forex Charts and How to Read Forex Charts

What is a Bar Charts?

Bar Charts are charts representation of the forex price displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW & CLOSE. The Opening forex price is displayed as a horizontal dash on the left & closing forex price as a horizontal dash on the right.

Different Types of Forex Charts - Types of Forex Charts and How to Read Them