Classification of Forex Trading Charts

There are three types of foreign exchange trading charts: candlestick charts, line charts and bar charts.

1. candlestick chart

Candlestick Charts in foreign exchange trading are also known as K-line, Japanese line, Yin-Yang line, bar line, etc. Because of their unique marking method, after more than 300 years of development, they have been widely used in stocks, futures, foreign exchange, options, etc. and other securities markets.

2. Graph

A simple graph is to connect the daily closing prices with a straight line. Once the straight lines connect to form a clear curve, we can see the overall price fluctuations of a group of currency pairs over a period of time.

3. Bar graph

Bar charts can also show closing prices, as well as open, high and low prices. The bottom of the vertical bar represents the lowest transaction price for the period, while the top of the bar represents the highest transaction price for the period. Therefore, a bar chart can generally reflect the trading price range of a group of currency pairs. The small horizontal line on the left side of the bar represents the opening price, and the small horizontal line on the right side of the horizontal direction represents the closing price.

Speaking of which, Japanese candlestick charts are much older than Western line charts and point-and-figure charts. The candlestick technology is very interesting, and the use of candlesticks can improve market analysis skills.