To start on the forex market, you should master at least the basics of technical analysis. When discussing technical analysis, instinctively, we think of graphics. They are everywhere: on television, in newspapers and are not only used for investment and trading.
To understand graphics, no need for long speeches. Simply read the data graphically. This is the first step to engage in technical analysis.
The continuous curve
The solid curve is the most common. It connects, over time and prices, the levels attained by a pair of currencies on the foreign exchange market. She often used to highlight the trend lines.
The volumes
The volumes are usually represented graphically by small sticks. The advantage of the volumes is that they allow a readable chart reading while providing plenty of information. In the case of the foreign exchange market, the volumes are less used.
The bars
The bar graphs include more information than the simple curve. Indeed, the bars are levels of opening, closing and the lowest and the highest level reached during the session. This chart type is most used by traders.
To understand graphics, no need for long speeches. Simply read the data graphically. This is the first step to engage in technical analysis.
The continuous curve
The solid curve is the most common. It connects, over time and prices, the levels attained by a pair of currencies on the foreign exchange market. She often used to highlight the trend lines.
Japanese candlesticks
Japanese candlesticks are not advisable for beginners. This technique first appeared in the 18th century through the trading of rice. The chandeliers were not popularized until the early 90 in the West. Since the method has many imitators. The chandeliers are very similar, as there's bars are the opening price and closing and the lowest and highest of the session. However, the candlesticks also indicate if the price fell, while the candlestick will be black, or has increased, then the chandelier will be white (see below).
Japanese candlesticks are not advisable for beginners. This technique first appeared in the 18th century through the trading of rice. The chandeliers were not popularized until the early 90 in the West. Since the method has many imitators. The chandeliers are very similar, as there's bars are the opening price and closing and the lowest and highest of the session. However, the candlesticks also indicate if the price fell, while the candlestick will be black, or has increased, then the chandelier will be white (see below).
The volumes
The volumes are usually represented graphically by small sticks. The advantage of the volumes is that they allow a readable chart reading while providing plenty of information. In the case of the foreign exchange market, the volumes are less used.
The bars The bar graphs include more information than the simple curve. Indeed, the bars are levels of opening, closing and the lowest and the highest level reached during the session. This chart type is most used by traders.
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