The Forex markets have many important terms which are very important to know. If the traders learn and know each of the terms, making a profit won’t be tough for them. However, it’s not enough to know or learn, you need to apply your knowledge in your trade so that you don’t make mistakes. You might have extensive knowledge about trading but if fail to comply with the basic norms, you are going to lose most of the trades.
To succeed at trading you need to learn about three main types’ charts commonly used by the skilled traders in Singapore. And learning about the different kinds of Forex charts is the basic part to start your journey as a trader. Let’s get into details and see what this chart has to offer to the retail traders.
Importance of the line chart
A line chart is a single, continuous line that represents the history of an asset’s price. The line chart is not a tough thing to understand, you can easily identify the line chart for its simplicity but you need to have the proper knowledge to identify the line chart. Some of you might think the line chart doesn’t contain enough data to execute the trade. But if you look carefully you find many trading opportunities in the line chart.
You can easily get an idea of the market direction by observing the line chat. Line chart connects a line from one closing price to the next, you will know about the market movement over some time by analyzing the line chart.
Importance of the bar chart
In the bar chart, you will see multiple price bars over some time. From the bar chart, you can observe the highs, lows, open and closing prices for each time. The bar chart also indicates with color, if the closing price is above the opening time then the color will be green or black and if the opening is above the closing price then the color will be red.
A bar chart indicates only one particular time, it may be of a day, week or even an hour. A bar chart also has a term known as a hash, the hash remains present for both the right and left side of a bar. When you start using the bar charts in the trading platform, you can expect to make a big profit by using a tight stop loss. Trading the critical support and resistance level will become easier and you can earn more money with less stress.
Importance of the candle chart
Traders use the candlestick charts to find the possible price movement by observing past patterns. Just like the bar chart the candlestick chart determines the high and low movement over some time. From all the charts the candlestick chart has a different display. Always remember, every candle has a different story to tell. If you want to make a profit, you must learn to use the candlestick pattern most efficiently. Click here and focus on the candlestick charts and learn its use properly.
The opening and closing price is indicated by the large block which remains in the middle of the candlestick. The candlestick also shows different colors for a different purpose, the top of the candlestick body indicates the open price whereas, and bottom of the candlestick body indicates the close price.
Conclusion
The different chart has a different purpose in the market, they are used to determine the movement of the market more accurately. If you trade without observing any of the charts, you will be in big trouble as the charts are designed to help you in your trade. The more you will give time to the market the better you will be able to trade. Pro traders always maintain their trading by observing the movement of the chart.