Trading tools that help traders make better professionals are always desirable. Also, Forex trading or currency trading which is one of the many profitable ventures a person can engage online to make extra money, has become competitive thanks to the trading tools like currency trading charts, economic calendars, pivot point calculators, etc.
Needless to say that those successful with online Forex trading admit that they have been using several of these currency trading charts for gainful trading and they even recommend this to other traders. Although there are a number of charts that traders use for making wise decisions in Forex trading, it is important that these are sourced from the right sources.
Also, as currency trading charts particularly show prices in the past and present as well as the market situation, traders can base their trading decisions on them to a great extent. Nevertheless, if traders are looking for patterns that give them a hint on whether to buy today or tomorrow and decide when is the best time to buy and sell with the best profit, currency trading charts are the best tools.
Various Kinds of Currency Trading Charts
Notwithstanding what currency prices, trends as well as market situations can also be graphically represented through these different currency trading charts and for that reason traders must be aware of the following kinds of charts available in market.
The first one is, Line Chart. It contains the closing prices that are show with a straight line connecting them, showing the trend and movement of prices. The second one is Bar Charts wherein traders find the opening and closing prices as well as the highs and lows of a currency pair. This is important for traders to understand the market well.
Third kind of chart is Candlestick Charts wherein a complicated set of information is presented; however, it does not generate any issue for traders as with little knowledge they can read and understand it. Nonetheless, this is favored by a lot of traders as they can get a lot of information with just a single graph.
Least but not the last, Point and Figure Charts which are being used a lot these days by thousands of traders world around. Here, instead of using lines and bars, ‘Xs’ and ‘Os’ are used for representing the movement of the price in the currency market.