We will consider using some of the different types of charts in forex technical analysis and useful information for readings such charts.

Price Charts contain information about FOREX prices at specific time intervals. Intervals of one minute up to several years. Prices are generally represented as line graphs, and sometimes changes during each time is like a chart or candlestick chart shown.

Line charts are useful to provide an overview of price fluctuations over time. They show the closing price at the end of time. Line charts several advantages compared to other types of graphics have: they are fairly easy to understand and are useful for finding patterns over a long period of time. However, a major drawback that they did not have the detail of bar charts and candlestick.

In contrast, bar graphs provide a greater amount of information, including online graphics. The length of each bar shows the difference in price for the defined time interval – a longer bar indicates a greater separation between high and low prices. In addition, each bar has two tabs. The tab on the left bar given the price at the beginning of an interval, while the right tab demonstrates the price at the end of an interval. With this system it is easy to see volatility in a specific time interval, and change to understand the properties of the price. At certain times it can be difficult, bar charts, which have condensed and printed on paper, but most computer graphics have to read a rule, a zoom function that makes it easy to see the details.

Candlestick charts from Japan, where they are often used to analyze rice sales. These bars are similar in that they indicate the price at the beginning and end of a particular time interval and the peak and low prices that range. In addition, these cards are color coded, which contributes to the ease of understanding. Green candlesticks are associated with higher prices, while red candlesticks show falling prices.

Candlestick shapes – these shapes, when compared with the adjacent lamps, provide information about market fluctuations. This information is useful in analyzing graphs. the spread of prices, and the difference between prices at the beginning and end of a given interval: Various forms of chandeliers come in the wake of several values. Candlestick pattern named name, which correlate with their physical forms, have been including the name “Morning Star” and “black cloud”. When an individual learns these shapes he or she is easily able to use to find them on a graph, and this information to identify trends in the market today.

Price charts are often supplemented by various technical indicators. Many of these technical indicators are divided into different categories. Some of these categories are trend indicators, strength indicators, volatility indicators and economic indicators. Each of these indicators can be a tool to predict fluctuations in the market.

Common technical indicators are widely used in FOREX:

Average Directional Movement Index or ADX focus – which is used to detect whether a contract is entered into an up or down, and give the strength of the trend rise. For the scale usually used by this index, the results of over 25 shows a trend towards a greater force than usual.

Moving Average Convergence / Divergence MACD short – demonstrates the current market dynamics, and the display of the relationship between the two averages liquid. A strong market is usually detected when the MACD signal line.

Stochastic Oscillator – This shows the strength or weakness of a market for a comparison at a given price ends in a price range on a specific time interval. A stochastic value below 20 has a currency that is oversold, while a stochastic value over 80 points in a currency that is overbought.

Relative Strength Indicator or RSI short – this is a scale of 1-100, indicating the peak and low prices at a certain time interval. A price that falls below 30 is indicative of an oversold product, while a price above 70 indicates overbought on a good one.

Moving Average – This is the average price over a certain time, if that price is compared with other average prices for the same period. For example, prices would end in an interval of 6 days, a moving average of all prices divided six times ending 6th

Bollinger bands – these are bands that contain the vast majority of the current value of the currency. These bands are of three horizontal lines. The top and bottom lines display fluctuations, while the middle row shows the average price. In times when the price is very volatile, the disparity between the growth of the upper and lower bands. Overbought or oversold periods to see if a bar or candlestick comes into contact with a Bollinger band.


Forex Technical Analysis