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Informative Articles

A Informative Forex Broker Review
Gain Capial has set a high standard with trailing stops. The trailing stop can only be entered as a separate order. Once the investor is in an order he can enter his trailing stop limit in pips to trail the market the distance the investor has set...

A Short Introduction To FOREX.
FOREX is the world’s largest and most liquid trading market. Many consider FOREX as the best home business you can ever venture in. Even though regular people have had the opportunity to take part in trading foreign currencies for profit (in the...

Forex And Daytrading
Online trading is great way for serious investors to make money, but inexperienced traders often wind up with big losses. A good set of instructions can minimize the risks and save months of expensive trial-and-error learning. Day Trading...

Forex Versus Futures
The origins of today's futures market lies in the agriculture markets of the 19th century. At that time, farmers began selling contracts to deliver agricultural products at a later date. This was done to anticipate market needs and stabilize supply...

Mazu e currency program and sports arbitrage trading reviewed
Mazu e currency and sports arbitrage reviewed The mazu e currency program is a book that tells you how you can start investing your money into the e currency exchange system using very little time and very little effort. It guides you...

 
Forex Trading And The Characteristics Of Bar And Candlestick Charts.

There is a very important factor that you should consider with great care if you are willing to become a successful and profitable Forex trader. This always important tool; in other words knowledge, that should be always present in your trader's portfolio, is the ability to read the charts.

There are two charts that are the most common types of price charts used in Forex trading, these are the Bar Chart and the Candlestick chart.

Here are the main characteristics of each of them:

Bars Charts - Price bars are a linear representation of a period of time, and this period will depend on the intervals of time you are interested on viewing and analyzing in the chart. This enables the viewer to see a graphic representation summarizing the activity of a specific time frame. For example they can be one minute or five-minute time intervals depending on the system you are using. Each bar has similar characteristics no matter the time interval and tells the viewer several important pieces of information about how a particular currency pair is behaving. First, the highest point of the bar represents the highest price that was achieved during that time period. The lowest point of the bar represents the lowest price during the same period. Regular bars display a small dot on the left side of the bar which represents

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the opening price of the period and the small dot on the right side represents the closing price of the period.

Candlesticks - Japanese Candlesticks, or simply Candlesticks as they are most widely known now, are used to represent the same information as Price bars. But they differ in how the gap between the open and close form are represented. These two prices form a body of a box which is displayed with a color inside. A red color means that the close was lower than the open, and the blue color represents that the close was higher than the open. If the box has a line going up from the box it represents the high and is called the wick. If the box has a line going down from the box, it represents the low and is called the tail of the candle. Many interpretations can be made from these "candlesticks" and many books have been written on the art of interpreting these bars. Many experienced traders highly recommend this kind of chart over the bar charts for the great amount of information they give with a single view.

About the author:

Adrian Pablo is a freelance writer with articles published in a number of places. Get a free report on Fibonacci Trading and learn more about the world of trading, visit the website: http://www.1-forex.com