The Various Charts In Forex Trading Nepal To survive the complex world of Forex trading, analysis and research are a must. From knowing entry points to setting stop orders, most of the generic operations involved in foreign exchange rely heavily on chart analysis. Building Forex charts help traders understand the market better and make profitable calls. With well-drafted charts, players can conduct in-depth technical analysis and take educated decisions. Four factors are considered while developing a chart in Forex:
1) Opening price. 2) Closing price. 3) Maximum price. 4) Minimum price. With these in mind and variables in play, any type of online trading chart can be constructed. Here are the different types of graphs: 1) Tick Chart: A very small scale depiction, this chart shows single price changes in the market. There is no sort of binding between this and the time interval. Tick charts serve incredibly well for market analysis. It's a typical bar chart, and with parameters like an opening, closing point, highs, and lows, catching a profitable wave is easy for any Forex trader! 2) Bar Charts: A bar pattern shows the opening, closing prices and the peaks, drops of the same. This is represented in the form of a vertical bar. The bottom shows the lowest price, while the top denotes the contrary. Similarly, the left side hash denotes the opening price, while the right denotes the closing.
3) Linear Graph: Linear charts are a simple connection between closing prices. When done sequentially, it generates a graph containing various closing prices. These serve as opening points for newer trends. Though price changes can't be evaluated as such, this methodology helps in placing stop orders. 4) Japanese Candles: An immensely flexible method, Japanese candles can be used across multiple timeframes. Depending on which timeframe they've been implemented on, respective price action is described. The "body of the candle" is the difference between opening and closing prices. If the latter is lower than the former, the body will be black. The opposite scenario results in a white body. Backed by strong research and a good grip over trade charts, Forex trading can be mastered easily! Several traders incur losses due to poor planning and haphazard execution. Don't make the same mistake! Get yourself a world-class Forex broker to aid you with your ventures - call WesternFX. We house an arsenal of stellar minds, who will assist you with superior strategies and impeccable platforms. Avail our services today.