Types Of Forex Charts

Due to Your daily trading would not be separated from the graph then ruled the charts and understand how the reading of the charts is the thing that should not be ignored. Forex trading without being able to read the graphs? It is just the running vehicle without a steering wheel! So enough gas and brake only and we see how the result.

There are various types of graphs that are used when you trade forex. But generally the forex charts is composed of several types:

• Line Chart
• Dot Chart
• Bar Chart
• Candlestick Chart

Here is a picture of each graph for GBPUSD currency:

• Candlestick Chart                           

 

        

• Dot Chart              

 
 

• Bar Chart

 

• Line Chart

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

If in the past we've known schools Bar Chart and Line Chart, candlestick and dot may sound familiar to you. The bad news, you will use a Candlestick all of this school. The good news is, it's not hard to learn.

There are also some other custom graphics are very rarely used by novice traders. Some types of graphs designed to predict price movement limits (support and ressistance) while the other is used to simplify the movement of a particular currency fluctuations. Don't worry, even without the need to familiarize yourself as the graph of Sciences you can make a profit on forex trading. Sooner or later it later you will learn that the biggest profit in determining the mental attitude that is ready and discipline.

Bar chart is more often used by American traders in analyzing currency movements. While Asian and European traders were more likely to use Candlestick in doing technical analysis. For Line Charts and Dot Chart its use was very limited in certain environments. This is due to an informai delivered on line chart and the Candlestick chart is not as complete as the dot and Bar Chart.

Candlestick itself in addition to being able to inform the price movement on a particular hour, reading much easier due to add color to the graph-its graph. Thus you no longer need to distinguish whether the graph is being analyzed is the graph of the graph goes up or down.

The next lesson we will learn how to read this Candlestick. A graph that is not known to us in the everyday world yet very common in forex.