Graphs are the initial help for you to make a decision. Thanks to the graphs, you determine the trend, identify the resistances and supports, discover the formations, use various analysis tools, and finally decide to enter the position. Therefore, you should be able to use and analyze the graphics very well.
Graphs can show you the requested time zone. You can also get a steady flowing graphic from the tick information that is going on or a graphic that each point represents a full month or a graphic that includes long years. You will determine the time zone according to the trade term you want to take a position in. Don’t review a single timeframe before making a decision. When you combine the general techniques described on our site with graphics, open your chart first in the long term and see the general trends. Then, you should go down to 5-minute charts to decrease time frames. Many platforms support opening multiple chart tables simultaneously. If necessary, open the charts of the same parity in different time zones. You can easily see some key formations in long-term graphics that you won’t see in small time-slice graphics.
In the Forex charts, you’ll see three types of graphs. These are:
Candlesticks are most regularly used in Forex graphs. A lot of visual information can be seen in these graphics. Each of the candlesticks provides us some information at the same time and these are the direction of the parity, opening price, closing price, the highest price, and the lowest price. Each candle body represents a certain time interval. This range depends on which time zone you have opened with the chart. If you have selected the 15-minute time option, each of the bars will show a value of 15 minutes.
Bar graphs are a more simplified version of candlesticks. Although they cannot be read as easily as candlesticks, some traders prefer to use these graphics. As it is with candlesticks, bar graphics also provide some information including the direction of parity, opening price, closing price, highest price, and lowest price at the same time. The line to the left of each bar shows the opening price of the pair, the line closing price to the right, the highest point of the top point, and the lowest point of the bottom point. Therefore, if the line to the right of each bar is lower than the left, the price is lower. In the other case, it is higher.
Line Graphics are the most standard and simple graphical form. They show only one price information. This kind of graph which is usually drawn over the closing price can be drawn from the opening, lowest, or highest price based on the ability of the platform you are using. However, in any case, it refers to only one data. It does not make much practical use, except when you want to look at it in general by simplifying it.