A Beginners Guide To Trading Forex

Forex Candlestick Charts

Candlestick Charts

candlestick

Candlestick Chart

Candlestick charts show all of the same information as a bar chart, but presented in a different way which most people find easier to read at a glance. You will see the same vertical line with the high at the top and the low at the bottom, but there is also a wide block in the middle showing the gap between the opening and closing price. The blocks will be filled white, green or blue for a rising price (closing price was higher than opening price) and black or red for a falling price (closing price was lower than opening price).

Again this shows the same price movements for the same period as in the line and bar chart examples, but presented in a different way, giving more opportunity for observing patterns and trends.

Most people prefer candlestick charts over bar charts because it is much easier to see turning points in the market using candlestick charts. You can immediately see where the market reversed from an upward to a downward trend and vice versa.

 

Next Page: Trend Lines

 

Forex Trend Detector
 

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