Forex charts are the charts used for tracking the prices of a currency pair over a time period. It helps in analyzing the trend in the Forex market and helps in determining what is the good time to buy or sell a particular currency at XFR Financial Ltd. There are 3 types of Forex charts which are used by the traders. These are Line charts, Bar charts and Candlestick charts. The candlestick charts are used by the majority of the Forex traders. We will understand all the different types of Forex charts here.
Line Forex Charts
Line charts are the simplest form of FX charts and are made up of series of dots connected by a line. These charts are basic charts and are not able to provide much information on the FX rates and therefore not used by the majority of the traders.
A bar chart is made up of a series of bars which show opening prices, closing prices as well as the high and low for the given period of the charts. The top of the bar shows the highest point the price reaches and the bottom shows the lowest price that bar fells. The dash on the left shows the price at which the bar opened and the dash on right shows the price which was closed. These bar charts are also known as OHCL (Open, High, Close, Low) charts. These bar charts provide plenty of information about a currency during the time interval. But still many Forex traders at XFR Financial Ltd find that the bar charts are not easy to the eyes and it is especially when you zoom out and see a lot of bars in one chart, it is hard to keep track of the prices. That is why now most traders refer to the next type of chart which is candlestick charts.
The candlestick charts have been derived from Japan and they were first used by the Japanese rice traders to keep the track of the changes in the price of rice. These are very similar to the bar charts but the look seems to be better and many traders prefer candlestick charts. These have bodies unlike bar charts. Here the open dash and close dash are the top and bottom of the candlestick body. This makes it very easier to look when the candle opened and closed. The different color of the body of the candle represents whether the candle moved up from the open or down.
Make A Profit With XFR Financial Ltd By Following Trends
The candlestick charts thus help in easily picking the price points and therefore used by a majority of the traders at XFR Financial Ltd who look for Forex charts for analysis. The FX charts are very helpful to understand the historical movement of a particular currency with respect to another currency and thus you are able to understand the trend in the past. Based on the past trends you can also predict the future and forecast the future price of the currency. You can select the type of the chart which suits you best.