Type of the Charts ~ forex trading hours uk
A chart is a representation of price movement over a specific period of time(time frame) and is
composed of an x-axis (time) and a y-axis (price). The choice of the time frame employed
depends on the users need. It is obvious that an intra-day scenario will not be based on a
monthly chart.
Line Chart
A line chart shows a line connecting the "closing prices". The closing is the last price recorded at
the end of a specific period of time (session).
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| Line Chart |
Bar Chart
Bar chart have all characteristics mentioned for the line chart also hold true for the bar chart.
However, the construction is a different one. The bar chart is composed of a high (highest price
during a session), a low (lowest price during a session) and the close. All that is required is to
draw a vertical line (bar) from the high to the low. Then, set a horizontal dot from the vertical line
to the right, representing the close.In some cases customers refer also to the opening price; a dot drawn on the left side of the bar. The bar graph is in all probability the most popular chart in use today.
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| Bar Chart |
Candlestick Chart
The simple candle on candlestick chart is formed by prices: the high, the low, the opening and the closing. The variation to the bar graph is that the open and the close form|make the cornerstones for the, so named, real body.The body is white if the closing is higher comparate to the opening. The contrary is true for the black body. The candlestick charting method is an old Japanese creation dating from the late 18th century. The theory tries to unveil trend reversal or continuation signals.
Various tools of analysis (trend lines,CCI, Bollinger Bands etc.) can be applied in combination
with the candlesticks char
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Candlestick Chart |
Renko Chart and Three-line break
Renko means brick in Japanese and provides a reversed back down. One of the biggest mistakes traders make is to be caught on the wrong side of the market. Three-line break charts reduce this kind of error by defining the trend in an unambiguous way. Trading with the trend can be rephrased as trading with the three-line break trend. A renko chart provides an ability to represent a predefined move in the price. While each candlestick or bar provides the low, high, open, and close of a sample period, renko charts provide an additional renko block only if the price has moved and closed at the predetermined setting. In other words, if the trader wants to know only if there is persistence in the sentiment, seeing consecu tive renko blocks would confirm that the market is showing the ability to push further brick by brick. This is very useful, and we will show you how to use renko blocks in
combination with other indicators to enable precision exiting.three linebreak and renko charts to show patterns of bull or bear bias.The key advantage of using three-line break or renko charts is to reveal whether the sentiment of the market has changed either at the large time frames or the smallest time frames. It is a tool worth exploring.
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Renko Chart |
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