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Forex Trading And The Characteristics Of Bar And Candlestick
By Adrian Pablo, Thu Dec 8th
There is a very important factor that you should consider withgreat care if you are willing to become a successful andprofitable Forex trader.This always important tool; in other words knowledge, thatshould be always present in your trader's portfolio, is theability to read the charts. There are two charts that are the most common types of pricecharts used in Forex trading, these are the Bar Chart and theCandlestick chart. Here are the main characteristics of each of them: (Article continued below)
Bars Charts - Price bars are a linear representation of aperiod of time, and this period will depend on the intervals oftime you are interested on viewing and analyzing in the chart.This enables the viewer to see a graphic representationsummarizing the activity of a specific time frame. For examplethey can be one minute or five-minute time intervals dependingon the system you are using. Each bar has similarcharacteristics no matter the time interval and tells the viewerseveral important
pieces of information about how a particularcurrency pair is behaving. First, the highest point of the barrepresents the highest price that was achieved during that timeperiod. The lowest point of the bar represents the lowest priceduring the same period. Regular bars display a small dot on theleft side of the bar which represents the opening price of theperiod and the small dot on the right side represents theclosing price of the period. Candlesticks - Japanese Candlesticks, or simply Candlesticks asthey are most widely known now, are used to represent the sameinformation as Price bars. But they differ in how the gapbetween the open and close form are represented. These twoprices form a body of a box which is displayed with a colorinside. A red color means that the close was lower than theopen, and the blue color represents that the close was higherthan the open. If the box has a line going up from the box itrepresents the high and is called the wick. If the box has aline going down from the box, it represents the low and iscalled the tail of the candle. Many interpretations can be madefrom these "candlesticks" and many books have been written onthe art of interpreting these bars. Many experienced tradershighly recommend this kind of chart over the bar charts for thegreat amount of information they give with a single view. About the author:Adrian Pablo is a freelance writer with articles published in anumber of places. Get a free report on Fibonacci Trading andlearn more about the world of trading , visit the website: => http://www.1-forex.com | 
