Types of Charts

Charts in Forex are generally divided into three main types:

In trading, there are various methods you can apply when speculating and making market judgments.

The two main aspects of Forex analysis are:

1. Technical Analysis – studying past price movements to predict future trends.

2. Fundamental Analysis – analyzing economic, political, and social factors that can affect currency values.

The foreign exchange market is quite unique compared to other markets. Skilled traders who can accurately read price action can often gain a clear view of how the price is likely to move next.

While studying technical analysis and observing the Forex market electronically via a computer, you will encounter three primary types of charts:

1. Line Charts – the simplest form of chart, connecting closing prices over a specified period to form a line.

2. Bar Charts – show the opening, closing, high, and low prices for each time interval, providing more detail than line charts.

3. Candlestick Charts – similar to bar charts but visually easier to interpret, with "candles" indicating price movement for a specific period.