The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. Even if you have no previous experience best free charts for forex knowledge of trading the markets you have probably seen a line chart of price on the nightly news or in a text book at some point.
USD is up although currently is in the midst of a downward correction and has been range-bound overall this year. Zooming out and looking at a daily or weekly line chart can give you a good idea of dominant trend direction. A bar chart shows the closing price as well as the open, high, and low price for the time period you are looking at. The top of the vertical bar indicates the highest price paid during that time period while the bottom of the bar indicates the lowest price paid during that time period. The entire length of the bar from top to bottom thus indicates the range of price over the time period you are looking at. NOTE: A bar is simply one segment of time, whether it is one day, one week, or one hour. Open, the High, the Low, and the Close for that particular currency.
Candlestick charts show the same information as a bar chart but in a graphical format that is more fun and useful to look at. Candlestick charts indicate the high and low of the given time period just as bar charts do, with a vertical line. The main difference lies in how candlestick charts display the opening and closing price. The large block in the middle of the candlestick indicates the range between the opening and closing price. By changing the color on your candlestick chart it can make it easier and more appealing to look at, red and blue are often used as alternate colors, however, I prefer black and white and you will see most charts on my website in black and white. Here we have substituted blue for the white candlestick and red for the black candlestick. Candlesticks are probably the most popular of all three chart forms among traders because they are visually easier on your eyes and they allow you to more easily catch signals and trends.
My forex trading course mainly uses candlesticks and I suggest all of my students use them. Ultimately it is your decision, but I feel they make learning about price action much easier and more relaxing on the eye and the brain. I find it easy to understand your explanation and am thankful for the knowledge that you have imparted. SERIOUSLY YOUR LESSONS WAS VERY GOOD, I DON’T HAVE MORE TIMES TO LEARN ABOUT CHARTS NOW YOUR LESSONS HAVE PERMITS ME TO GET SOME EXPERIENCE ABOUT CHARTS. I love your explanation,it so easy and simple. You are doing an excellent job!