Intermediate knowledge
Chart Type
In the foreign exchange market, most traders use chart types are mainly three. Line charts, candlestick charts, and columnar.
Line chart
Line graph represents the average price of a particular currency pair and the closing price of the day. Suitable for long-term trend of judgment.
The main advantage of a line chart that is easy to analyze trends change. The main weakness is no way to see the daily price fluctuations.
Bar Chart
The histogram has several advantages, for beginners and candle charts provide the same information, forms allow readers to quickly grasp familiar and relevant information.
Candles
General types of candle chart chart is the most popular foreign exchange market and foreign exchange website show. They can let the reader know what happened the day the market immediately, ups and downs of the market. For more information on how to see the K-line diagram, see the article, "candle mode."
Any high-quality forex broker website, these charts can reflect changes in the market to suit your specific needs. Candle charts and histograms usually can adjust the time period, so that they can choose from a one minute period to a year between any of you.
Website charting capabilities are the most important features of a website. Charts are also subjective factors. Some traders in candle line to select a different color or other small details that make them easier to understand and read the chart. Finally, you should also choose the most suitable for your body surface expression patterns.
Select the best map
Through charts and financial data to predict a currency exchange earnings estimates, investors can collect different types of information to customize different types of charts, combined with our candles and histograms outlined above advantages and disadvantages. We can define the candle or bar them from the time period.
K line graph
K line graph only provides monetary trends in your data, but also to reflect the daily changes in exchange rates boundaries. However, more interesting is, K line graph also a good tool to enhance investor confidence in a particular currency against the dollar. We then say that a candle chart example. In each trading day, K line is like a small box. The box is dark, if the exchange rate closed below its opening price. The box is white, if the opposite occurs. If the box is black, top representatives of opening the box at the bottom of the representative of the closing price. If the box is white, and vice versa. Most at the top and bottom of the box represent the day high or low. It is for the emotional volatility of consumer markets, which futures traders in Japan as early as 1700, put these charts formalized. In fact, the difference between the K-line diagrams and line charts and histograms is between preference or geographical differences between Japanese and American businessmen. (Although there are some differences, however, in chart form the United States and Japan, the histogram has candles everywhere.)
Japanese businessmen original idea was to highlight the importance of how prices. They believe that on the one hand, the price is the most important information, traders can trade, meanwhile, found that the value of assets not directly related to asset prices. It is said that investors will be reflected in the price of their assets in the market, their bids and requirements, but their views are not necessarily commensurate with the intrinsic market value. Instead, these bids also involve their emotions and worries to some extent. Dependent on market volatility and investor confidence in their emotions implied traders.
Histogram
A typical bar chart, the ordinate is the exchange rate, the horizontal axis is time. First day of high and low to find the time and the exchange rate at the point of intersection, connecting the highest and lowest prices to a vertical line. Closing price on the corresponding point in the right vertical transverse draw a short line representation. Over time, a day set aside on the corresponding time coordinate columnar line, day after day, it constitutes a jagged, undulating histogram. Interval histogram can be daily indexing, indexing hours per week or per degree.
Histograms and candles similar. In other words, it makes the daily maximum and minimum values, but leave the opening price (and therefore fluctuations in the day), only to the closing price, which is used as a daily fluctuation scale track.