Forex  Factory[[[Bangla Forex School]]]

This part of the course is going to give you a brief overview of the three primary types of charts that you will run across !!in your Forex trading journey. The chart type that I use, and that my members use, is ….candlestick charts, I feel  do the best job at showing the price dynamics in a market,,,,, since their design helps you to visualize the “force”, or lack thereof, that a particular price movement exhibited. So, let’s go over the three main types@@ of charts that you will likely see as you trade the markets: Bangla Forex School

Line charts are good at giving you a quick view of overall market trend as well as support and resistance levels. **They are not really practical to trade off of because you can’t see the individual price bars, $$but if you want to see the trend of the market in a clear manner, you should check out the line charts of your favorite markets from time to time.

Bangla Forex School

Line charts are made by connecting a line from the high price of one period to the high price of the next, low to low, open to open,££ or close to close. By far, line charts that show a connection from one closing price ∑∑to the next are the most useful and the most widely used; this is because the closing price of a market is deemed the most important, since it determines ≠≠who won the battle between the bulls and the bears for that time period. Let’s look at an example of a daily line chart of the EURUSD

Candlestick charts show Bangla Forex School the same information ≠≠as a bar chart but in a graphical format that is more fun to look at. Candlestick charts indicate the high and low !!!of the given time period just as bar charts do, with a vertical line. The top vertical line is called the upper ##shadow while the bottom vertical line is called the lower shadow; you might also see the upper and lower shadows referred to as “wicks”.&& The main difference lies in how candlestick charts display the opening and closing price.** The large block in the middle of the candlestick indicates the range between^^ the opening and closing price. Traditionally this block is called the “real body”.