In foreign exchange trading, a successful transaction cannot lack the analysis of various charts. After multiple comparisons, foreign exchange transactions can be carried out. Therefore, it is necessary to look at the foreign exchange charts. Here are three different foreign exchange charts.

line chart

A simple line chart depicts the pattern connecting the closing prices of adjacent periods. When the closing price is connected in the form of a broken line, we can see the trend of a certain currency pair in a certain period of time.

Bar graph

Bar graphs are more complicated than line graphs. It shows the opening and closing prices of the exchange rate, as well as the highs and lows. The bottom of the vertical line shows the lowest point of the exchange rate during this time, and the top of the bar chart shows the highest point of the exchange rate during this time.

The vertical line itself also shows the fluctuation range of the exchange rate during this period.

The horizontal line on the left of the vertical line shows the opening price of the exchange rate, and the horizontal line on the right of the vertical line shows the closing price of the exchange rate.

Bar graph

A “bar” is a segment of time, either one day, one week, or one hour. When you see the word “bar” in the future, please know the time period it represents.

The bar chart is also called the “OHLC” graph because it shows the opening, high, low, and closing prices of a particular currency.

The figure below is an example of a price “bar”:
Price bar”

Opening price: The dash on the left shows the opening price.

High point: The top of the vertical line is displayed as the highest price during this period.

Low point: The bottom of the vertical line shows the lowest price of the price during this period.

Closing price: The dash on the right shows the closing price.

Candle chart

Candlestick chart is also referred to as K-line chart, which displays the same information as the bar chart, but is more beautiful and vivid.

The candlestick chart is drawn based on the opening price, highest price, lowest price, and closing price of each analysis period.

Taking the drawing of daily k-line as an example, first determine the opening and closing prices, and draw the part between them as rectangular entities. If the closing price is higher than the opening price, the bar is called a Yang line, represented by a hollow entity. On the contrary, it is called Yinxian and represented by black entity or white entity.

Candle chart

Different charts are suitable for different foreign exchange transactions, so we will choose a foreign exchange chart that suits us.

Taking the drawing of daily k-line as an example, first determine the opening and closing prices, and draw the part between them as rectangular entities. If the closing price is higher than the opening price, the bar is called a Yang line, represented by a hollow entity. On the contrary, it is called Yinxian and represented by black entity or white entity.
Daily k line

The advantages of candlestick charts are:

  1. The candlestick chart is easy to interpret and easier for beginners to analyze;
  2. The candle chart is easy to use;
  3. The candlestick pattern has many very cool names, such as shooting star, which helps you remember the meaning of this pattern.