Chart is an image that clearly reflects the change in price and other market values. A popular tool
for technical analysis.
The graphs are constructed in a rectangular system of two coordinates. Traditionally, the
horizontal axis of abscissa is time, on the vertical axis of ordinates are displayed price, volume or
open interest (for the Forex market - the exchange rate or tick volume).
The arithmetic scale is applied along the time axis. On the price axis, an arithmetic or
logarithmic scale can be used.
The period corresponding to the unit interval on the time axis, is the timeframe (scale). It
depends on the degree of compression of market data. The tick chart shows each change in the
exchange rate. This is the smallest timeframe. Tick information about transactions is not always
available and is not necessary, so most commonly used is a generalized, condensed price history
for a certain period.
There are four basic values of the exchange rate for different periods of time:
Open price (Open, O);
The maximum price (High, H);
The minimum price (Low, L);
The closing price (Close, C).
On the chart can be applied one price value of the period or all four at the same time.
At each moment of time, the exchange rate in the Forex market is presented in the form of bid /
ask quotes. The graph can be constructed both for one of these prices and for their average value
(Bid + Ask) / 2. A combined approach is possible when the Bid is used as the minimum period
price, Ask is the maximum price, and the opening and closing prices are taken from the average
Bid and Ask prices.
Modern information and trading terminals allow you to obtain market data in real time and build
on their basis different graphics.