Introduction-
The foreign exchange often referred to as forex, is a global foreign exchange market where one country’s currency gets exchanged into another country’s currency. This article will discuss the types and roles of the Forex view, which are the foreign exchange charts. Foreign exchange charts are a graphical depiction of the price difference or the rise and low of the price of two different currencies of two countries for some time. Technical analysts create these charts.
Types and their role in the forex market-
Line charts- this form of graphical representation is the oldest and the first form of representing trends and prices. A line chart is a primary, easiest, and least informative way to represent the price in the world of foreign exchange. To represent each time parameter, they show one open dot and one close dot, connected through a line and happens for an extended period. The line chart especially shows the closing line. Traders use this chart to go accurately with the trend.
Bar charts- this form of graphical representation was introduced second to the introduction of the bar graph. This form is more informative and complex than the line chart. The economists of the USA developed it. A bar chart has four forms of graphics showing high, low, open, and close. Any trading interval is represented by a bar. When the bars represent the high and low prices, the opening of the trade is represented as a dash on the left-hand side, and the closing of the trade is represented as a dash on the right-hand side.
Candlestick charts- introduced by the Japanese trading analyst. This was developed to track price highs and lows more accurately. The candlestick is represented by black or red to show if the opening price is lower than the closing price, and White or green to show if the opening price is lower than the closing price. The top and the bottom of the display show the opening and closing prices of the trend.
Conclusion-
To conclude, these are the most popular and trending forex charts.