Yesterday we looked at what was meant by charting in Forex trading. Today we are looking at the most popular type of chart - the Bar chart. You can see above how clear and how easy to understand they are and this is the main reason why they are so popular.
The vertical line represents a specific period of time - very often one day. The chart is designed to provide four specific pieces of information: high, low, open and close.
- The highest point of the line represents the highest price that was reached during the period.
- The lowest point on the line shows the lowest price that was reached during the period.
- A dot or vertical bar on the left of the line shows the opening price of the period.
- A dot or vertical bar on the right of the line shows the closing price of the period.
There are different patterns you can detect in bar charts, that can help you make your trading decisions by predicting the movements of the market. We will look at these patterns in a later post, but tomorrow we will look at Candlestick charts. Easy-Forex provide a large range of charting tools. according to whether you are a novice or experienced trader, and give you detailed tuition in how to use them. And don't forget there's plenty of information about Forex trading at http://www.bizwrite.co.uk/Forex/forexindex.html
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