Forex Chart
Forex Chart, Forex Charting
For either stock exchange or currency exchange in the market, technical analysis plays a vital role for all of the investors as technical analysis is a method used to evaluate and predict the market movement by gathering statistical information from the trading market itself. For the sole above reason, we can say this is why Forex chart is very important in terms of Forex trading.
First of all, for a brief introduction, there are actually 3 main types of charts which are bar charts, candlestick chars and point & figure charts. Actually in truth, the first charting analysis technique originated from Japan over 300 years ago, and not the west as many people thought it might be.
Until today, one of the most common and widely used chart in both Forex trading and stock exchange is none other than the bar chart. As the same suggested, a bar chart uses bar as their graphing for the chart and in addition to that, normally a bar chart is used to display the high, low, open and closed for each particular days, which makes it an advantage compared to the other two types of charts.
Another one of the common used chart types is the candlestick chart. For candlestick chart, it is commonly referred to as a "Japanese Candles" as the Japanese often used this chart type to analyze the price for the rice contracts. Regardless, this chart performs almost the same function as the bar chart where it displays high, low, open and closed. However, the candlestick chart differs from bar charts due to the reason where candlestick charts uses different colors (such as blue and red) to display the condition of a certain currencies. For most of the investors, the candlestick chart can be said as a "love or leave" situation because the investor will either use the chart frequently or wouldn't use it at all.
Last but not least, the 3rd type of chart is the chart known as point and figure charts. Actually to tell the truth, this chart is seldom offered in most of the online Forex chart resources as it is very tedious to keep a long record of the trading which occurred through the whole period. This is due to the fact where originally, point and figure chart is used for intraday charting only. This chart normally plots day to day increase or decrease of a certain currency with "x" for increase and "o" for decrease. This graph actually helps the investor to filter out less active trades and helps them to focus their investment on more active trades.
In truth, charting is very important for technical analysis as it shows the result of the data collected from daily Forex trading. With the aid of charts, the flow of the Forex market can be predicted easier and more accurately. Try to consider this where if there is no chart or any graph to show the performance of the market, how can analysis be done by just looking at a chunk of raw data which obviously meant nothing if it is not analyzed?
Forex Chart Reference
http://www.forex.labuan.net/forex-charts.html
http://www.investopedia.com/articles/technical/04/060204.asp
http://www.investopedia.com/university/technical/
http://www.investopedia.com/articles/trading/04/031704.asp
http://www.stockcharts.com/education/ChartAnalysis/chartPatterns.html
For either stock exchange or currency exchange in the market, technical analysis plays a vital role for all of the investors as technical analysis is a method used to evaluate and predict the market movement by gathering statistical information from the trading market itself. For the sole above reason, we can say this is why Forex chart is very important in terms of Forex trading.
First of all, for a brief introduction, there are actually 3 main types of charts which are bar charts, candlestick chars and point & figure charts. Actually in truth, the first charting analysis technique originated from Japan over 300 years ago, and not the west as many people thought it might be.
Until today, one of the most common and widely used chart in both Forex trading and stock exchange is none other than the bar chart. As the same suggested, a bar chart uses bar as their graphing for the chart and in addition to that, normally a bar chart is used to display the high, low, open and closed for each particular days, which makes it an advantage compared to the other two types of charts.
Another one of the common used chart types is the candlestick chart. For candlestick chart, it is commonly referred to as a "Japanese Candles" as the Japanese often used this chart type to analyze the price for the rice contracts. Regardless, this chart performs almost the same function as the bar chart where it displays high, low, open and closed. However, the candlestick chart differs from bar charts due to the reason where candlestick charts uses different colors (such as blue and red) to display the condition of a certain currencies. For most of the investors, the candlestick chart can be said as a "love or leave" situation because the investor will either use the chart frequently or wouldn't use it at all.
Last but not least, the 3rd type of chart is the chart known as point and figure charts. Actually to tell the truth, this chart is seldom offered in most of the online Forex chart resources as it is very tedious to keep a long record of the trading which occurred through the whole period. This is due to the fact where originally, point and figure chart is used for intraday charting only. This chart normally plots day to day increase or decrease of a certain currency with "x" for increase and "o" for decrease. This graph actually helps the investor to filter out less active trades and helps them to focus their investment on more active trades.
In truth, charting is very important for technical analysis as it shows the result of the data collected from daily Forex trading. With the aid of charts, the flow of the Forex market can be predicted easier and more accurately. Try to consider this where if there is no chart or any graph to show the performance of the market, how can analysis be done by just looking at a chunk of raw data which obviously meant nothing if it is not analyzed?
Forex Chart Reference
http://www.forex.labuan.net/forex-charts.html
http://www.investopedia.com/articles/technical/04/060204.asp
http://www.investopedia.com/university/technical/
http://www.investopedia.com/articles/trading/04/031704.asp
http://www.stockcharts.com/education/ChartAnalysis/chartPatterns.html
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