Forex chart patterns
Forex charts are a way of visual perception of market information, in which a clear picture of the
price movement over a period of time is constructed from the flows of market quotes. Currently,
almost all traders use trading tools in graphical analysis, because they allow to clearly what is
happening in the Forex market. The types of Forex charts that are most often used in trading, as
well as their features, are as follows.
The simplest way to perceive market information is to offer a line chart. To build it, values are
taken for a certain period of time. The advantage of this construction is that it shows the general
direction of the movement of quotations, excluding those fluctuations that were within the period
under study. For example, in a minute the quotes make a lot of fluctuations, but only one value
will be displayed on the linear chart - usually the closing price or, more rarely, opening.
If the trader wants to see the prices that appeared within a particular trading period, then he
should pay attention to the candlestick chart. Each candlestick here displays not one price, as in
the case of a linear chart, but four: the highest for the period, the lowest, and the first (opening)
and the last (closing) price of the period. For example, if we are talking about a minute interval,
the candle will show the maximum price per minute (the upper shadow), the minimum (the
lower shadow of the candle), the opening and closing price, the distance between which is called
the candle body. Such a Forex chart looks at first glance difficult, but over time a habit arises,
and it is "read" quite easily.
The advantage of the candlestick before the linear is obvious - it carries four times more