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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 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 href="http://www.1-forex.com">Fibonacci Trading and learn
more about the world of trading, visit the website: href="http://www.1-forex.com">http://www.1-forex.com

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Foreign Currency Exchange Trading News

Foreign Currency Exchange (Forex) Trading For Individual Investors.

M2 PRESSWIRE-August 30, 2011-: Foreign Currency Exchange (Forex) Trading For Individual Investors(C)1994-2011 M2 COMMUNICATIONS RDATE:29082011 It seems everywhere you turn these days, people are talking about foreign currency exchange ("forex") trading and how it's a great way to invest and make a

Publication: M2 Presswire

CHINA: UNIFIED INTERBANK FOREX LENDING MARKET LAUNCHED IN CHINA.(China Foreign Exchange Trading Centre)(Brief Article)

The China Foreign Exchange Trading Centre, a unified domestic interbank foreign exchange (forex) lending market, started operating on June 1st 2002. The China State Administration of Foreign Exchange (SAFE) stated that this move aims to improve the operational efficiency of financial institutions'

Publication: Info-Prod Research (Middle East)

E-forex: Currency trading for the rest of us. (Day Trading Techniques).(foreign exchange markets)

Foreign exchange markets are no longer just the domain of large traders with multi-million dollar accounts and connections at big banks. The e-forex revolution is here and is providing traders of all sizes legitimate options for trading foreign exchange. An average individual armed with a computer,

Publication: Futures (Cedar Falls, IA)

Online Foreign Exchange Trading Pioneer, GAIN Capital, Launches FOREX.com in the UK.

Self-Directed Retail Investors Now Have Access to Premium Trading Tools, Research and Sophisticated Order Management on Award-Winning FX Platform LONDON and NEW YORK, May 4 /PRNewswire/ -- GAIN Capital Holdings Inc., pioneer of online foreign exchange (forex) trading, today launched FOREX.com, its

Publication: PR Newswire

OWNER OF FOREIGN CURRENCY EXCHANGE TRADING COMPANY CHARGED WITH DEFRAUDING INVESTORS OUT OF MORE THAN $5M

BOSTON, April 12 -- The U. S. Department of Justice's Federal Bureau of Investigation Boston Field Office issued the following press release: A California man was arrested this morning on federal charges that he defrauded investors out of more than $5 million. LYNDON LYDELL PARRILLA, 31, of Los

Publication: US Fed News Service, Including US State News