Types of Forex charts
The line chart is the simplest chart to show the current situation of the market. It shows the line from one closing price to the next closing price.
The bar chart is used for the graphical representation of prices in the financial market. At a given time period it shows the highest price, lowest price, open and close price. The small horizontal line on the left side of a big vertical line indicates the open price, the small horizontal line on the right side of the big vertical line indicates a close price. The topmost reach of the vertical line indicates the highest price and the bottommost reach of the vertical line indicates the lowest price in the market.
The combination of line chart and bar chart is called candlestick chart which indicates high, low open and close. One day is represented by one candlestick for better understanding. A candlestick contains a wide part which is used to represent the open and close price of a day is called the “real body”. If the close price of a day is lower than open price then it is represented by a filled real body candlestick. In the case of the close price is higher than open price then it will be represented by empty real body candlestick.