One of the most basic foundations of technical analysis is watching prize charge there are three popular types of charts used by forest traders and these are line charts for open high low close charts and candlestick charts, the lines are in the simplest among the three with a price line connecting one closing price to the next this allows the traders to gauge the general direction of price action, whether the exchange rate is is reading higher or lower. The bar chart which is also called the OHLC chat, is a little more Complex each bar not the open high low and close of the price depending on the time frame used. Zooming in to each bar the horizontal line to the left marks the open price for the period while the horizontal line to the right marks the closing price the highest point of each bar stands for the high for the period while the lowest point is for the law. Lastly the candlestick chart is the most commonly used by Forex traders similarly to the the open I lo close chat candlestick also indicate the open high low and close of price action trading the period. What sets candlestick charts apart is that the bar have a colour body which makes it easier to visualise weather price went up or down during the period when price closed higher than its open prize for the period the candlestick is coloured white or green when price closed lower than its open price for the period the candlestick is coloured black or red This Way Forex traders can also get a clear idea of whether buying or selling pressure is building up . In addition to providing a quick snapshot of bullish or bearish Momentum Japanese candlesticks also have formation that act as reversal for continuation signals these formation can form in individual candlestick pattern or in groups of 2 or 3 candlestick pattern which are also a major component of modern technical analysis are covered in the next section. Thanks
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