10 Forex Trading Charts PDF (MT4/MT5)

Forex trading  charts help traders analyze historical data and make informed decisions on when to buy or sell currencies. The value of each currency pair is constantly fluctuating due to this factors such as economic news, political events, and central bank policies.

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For example, if you believe that the Euro (EUR) will strengthen against the US Dollar (USD), you would buy EUR/USD at a lower price and sell it at a higher price to make a profit. On the other hand, if you think that EUR will weaken against USD, you would sell EUR/USD at a higher price and buy it back at a lower price to make a profit.

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Types of Charts Used in Forex Trading

There are several types of charts used in forex trading but the most commonly used ones are line charts, bar charts, candlestick charts, and point & figure charts.

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This type of chart plots closing prices for each time interval (hourly/daily/weekly/monthly) on a straight line connecting them. Line charts help check long-term trends but lack details about price fluctuations within the time interval. Line charts are useful for check trends Elliott Wave Patterns and overall price movements but may not provide detailed information about individual price fluctuations.

They consist of a single line connecting closing prices over a specific time period. The x-axis represents time, while the y-axis depicts price levels. These charts are useful for providing a general overview of price trends over a given period.

Bar Chart:

Bar charts display four crucial pieces of information opening and closing prices, as well as the highest and lowest points during a given time period. Vertical lines W Pattern are drawn to denote the range between high and low prices while horizontal lines represent the opening and closing prices.

The vertical lines on the chart represent the price range while small horizontal lines on either side show opening and closing prices. . Each bar on these charts represents one period 1 hour, 4 hours, daily with the top representing the highest price reached during that period and the bottom representing the lowest.

The vertical lines extending from each bar indicate the range between the highest and lowest prices traded during that particular period. Traders can quickly check trends by observing whether bars are rising or falling over time.

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Candlestick Chart:

Similar to bar charts, candlestick charts also show open, high, low, and close prices for a specific time frame. However, they use different colors (red/green) Binary Options Indicator or body shapes (filled/unfilled) to indicate whether a currency pair has closed higher or lower than its opening price.

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They show both bullish (upward) and bearish (downward) candles with different colors indicating whether buyers or sellers were in control during that time period.

Candlestick charts also display opening, closing, high, and low prices within a specified time frame but with an added visual element  color coded bodies that indicate whether prices have gone up (bullish) or down (bearish).