Forex Currency Charting Basics

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What is Forex currency charting?

Forex Currency Charting Basics

FXClub.com Tip: Forex currency charting is a graphical representation of fundamental and/or technical indicators. There are many forms of forex currency charting, but most can be described as a line chart, bar chart or candlestick chart.

The line chart in forex currency charting is your basic graphical interpretation of exchange rate history over a period of time. Similar to stock charts, it is developed based on the daily closing prices of currency pairs.

The bar chart in forex currency charting is the standard bar graph based on price performances of a currency pair. It is compromised of vertical bars based on time intervals (minutes, hours, days). The bar chart usually represents the opening, closing, high and low exchange rates.

The candlestick chart in forex currency charting is very similar to the traditional open-high-low-close stock charts (for example, the stock charts created in Microsoft Excel). The candlestick chart shows the open-high-low-close values in small ‘bars' that resemble candlesticks with ‘wicks' at each end. The candlestick bar is solid when opening rates are higher than closing rates and hollow when closing rates are higher than the opening rate.

   

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