Learn to Trade Forex – 9. Trading with Charts | Swissquote

Most traders use price charts to some
extent. Three commonly used charts are the line chart, the bar chart, and the
candlestick chart. A line chart consists of price points connected by a line. A
bar chart shows the opening price of the instrument, in other words the price that
product opened trading at that morning. The bar also shows the closing price. The
additional length of the bar beyond the opening and closing price are the day’s
highest and lowest prices. A candlestick chart is the same as a bar chart but
many traders find it easier to read. It is thicker and the color indicates
whether the closing price was higher or lower than the opening price. The length
of the candle wicks or tails show the price movements of the day. There are
many ways to customize your charts: you can adjust periods,add trading volume,
define colors and place all kinds of reminders for yourself. The main point of
charts though is to analyze price movements to find price trends and
pattern. There are countless analyses included in your trading platform. If you
wish to learn more, please watch the videos about support and resistance
levels and price trends and patterns.

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