Types of Forex charts.

The main part of technical analysis is based on Forex charts; it is their analysis that allows us to obtain data on price behavior.

There are several chart options that are available in the trader’s trading terminal; the choice of the most suitable one depends only on personal preferences and the tasks that are set.

Types of Forex charts in MetaTrader 4 – line, bar, Japanese candles.

In addition, there are some general parameters that should be taken into account when conducting the analysis. These parameters are:

• Opening price – the first quote of the beginning of the day or the first trade in the time frame.
• Closing price – last quote.
• Maximum – the highest price in a certain time period.
• Minimum – lowest price.

These concepts can be applied both to a separate trading day and to a separate time frame in Forex .

They are displayed graphically on bar and candlestick charts. And now more about the types of Forex charts themselves.

Linear - the simplest option, expressed in the form of a curved line, allows you to track the dynamics of price movement and identify its general trend.

Bar charts are charts consisting of individual bars, each of which characterizes a certain time period - a Forex bar, depending on which time frame you are trading on.

Each bar has an opening and closing price, a minimum and a maximum. You can determine the direction of the trend by the direction of the segments characterizing the closing and opening prices. Candlesticks are the most favorite option for Forex charts by traders; in addition to four parameters, each candle also has its own color, depending on the direction of the trend.

Therefore, you can immediately understand where the price was moving on a given time frame. By default, in the MetaTrader 4 , price movement is displayed in the form of bars; you can change them to another option on the “Charts” menu tab. Also, if desired, you can change the display scale, the color of Japanese candles, and the time frame.