October 23, 2013

The Different Forex Charts You Use

This article looks at the different forex charts that you can use and the differences you find.

Different Forex Charts

When you look at using forex charts you have to consider the different types that are available.  You also have to consider which forex charts you should be using.  There are two common chart types that you should consider when you look at the forex market.  These are the Japanese candlestick charts and the Western line charts which are also known as the bar charts.

The Two Common Forex Charts

The Japanese candlestick and the Western line charts are the two most commonly used types of forex charts.  This is due to the amount of information that you get from these charts.  Both charts offer you the same amount of information, but they present this in different ways.  You have to consider what this information is and the differences that you have with the charts.

The Information that you Get

The information that you get with these forex charts are the same.  You will be told about the price movements as well at the opening and closing prices.  The charts will also tell you about the highs and lows that were found on the market in the timeframe that you ate looking at.  All of this information is important when you are looking to trade on the forex market.

The Differences Between the Charts

The primary differences that you find with the candlestick and bar charts, are the way that they present the information.  The candlestick employs a number of different colours that help you determine whether the price is rising or falling on the market.  This is something that you do not get with the bar charts.  There are no colours on the body of the bars that tell you what is happening on the market at a glance.

Another difference is the emphasis that is placed on the opening and closing prices.  The candlestick will place emphasis on the closing price in relation to the previous closing price.  The bar chart will place the emphasis on the opening and closing prices of the single session.  This can make a difference in the way that you use the charts.

The Use of Indicators

When you trade with technical analysis you are going to be using technical indicators.  There are many traders who worry that they will not be able to use certain indicators on the different charts.   When you look at the candlestick and the bar charts you will be able to use the same indicators on them.  Of course, you may have to adjust them slightly to ensure that they work with both of the charts.

The Chart Patterns

When you look at chart patterns you have to be careful with the charts that you are using.  Most chart patterns will be found on the candlestick charts.  However, there are some patterns that you can find on the bar charts.  You should consider what these patterns are and whether or not they are the ones that you want to use to trade.  If you are using the wrong patterns then you are not going to be able to trade correctly.



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