| As a Forex trader, you need to be familiar with | | | | candlestick would be red. |
| Forex chart reading. It will depend on which system | | | | Trendlines |
| you are using but the most common is the Japanese | | | | A trendline predicts the general direction in which the |
| candlestick chart. Other charts are the line charts, | | | | currencies are going. The upward or downward |
| OHLC charts, trend lines and triangles. The wise | | | | direction of the trend line is determined by connecting |
| Forex trader will learn these and more thoroughly. | | | | the lowest or highest price points over a time period. |
| Line Charts | | | | Trend lines are popular with technical analysis but are |
| A line chart is simply one that draws a line from one | | | | generally used in conjunction with other charts |
| closing price to the next closing price. It is easy to | | | | patterns. |
| see the trend of price movement over time when a | | | | Triangles |
| line is drawn across the points. | | | | The triangle Forex chart patterns are derived from |
| OHLC Charts | | | | the movement of the price bars and shown as a |
| An open-high-low-close chart (or simply bar chart) is a | | | | horizontal line against a trend line. When a peak |
| type of chart which simultaneously shows the | | | | breaks the trend line at the top (ascending) trend |
| opening prices, as well as the highs and lows. The | | | | line, go long (buy). Conversely when a peak breaks a |
| bottom of the vertical bar indicates the lowest | | | | downward trend line (descending) it is time to go |
| traded price for that time period, while the top of | | | | short (sell). |
| the bar indicates the highest price paid. | | | | There are many more Forex chart patterns. These |
| Candlestick Charts | | | | are the 5 most commonly used charts in Forex |
| These charts are a sophisticated form of the bar | | | | trading. Perhaps you only use one or two Forex |
| chart showing the data in color for more clarity. | | | | charts regularly but in order to have a full knowledge |
| Green indicates that the price closed higher than it | | | | of Forex trading you should at least be familiar with |
| opened. If the price closed lower than it opened, the | | | | the others. |