A line chart is a simple type of chart that displays the closing price for each selected time period (e.g., day, hour, or minute).
The price points are connected by a line, creating a view of the price movement for a particular period.
A bar chart provides more detailed information about each period.
Each bar shows the opening, high, low and closing price.
Japanese candlesticks are one of the most popular and informative types of Forex charts.
Each candlestick shows the opening, high, low and closing price for the selected period and also visually highlights price changes (bullish or bearish candle).
A dotted chart differs from the others in that it does not display time.
It focuses only on price changes, which helps cut out market noise and highlight significant movements.
Charts help analyze market volatility.
High volatility indicates large price swings, which can be an opportunity for profit.
Using charts, you can adapt your strategies according to the current volatility.
They are an important tool, providing a visual representation of price movements and helping you make informed trading decisions.
Understanding the different types of charts and applying them to trading allows you to analyze the market, identify trends and patterns, and effectively manage your positions and risks.
Regardless of experience level, the ability to use charts correctly is a key skill for successful trades in the foreign exchange market.