How do you read a forex line graph?

HLOC chart (also called a bar chart)

1. The open price is represented by the notch to the left of the vertical line.
2. The close price is represented by the notch to the right of the vertical line.
3. The high price is the uppermost point of the vertical line.
4. The low price is the lowest point of the vertical line.

What do line charts show?

A line chart is used to show the change of information over a period of time. The horizontal axis is usually a time scale; for example, minutes, hours, days, months, or years. For example, you could create a line chart that shows the daily earnings of a store for five days.

What is line chart in forex?

In Forex, a line chart is the most basic and simple price representation. Basically, it marks various price points of a certain asset on the diagram and then connects the neighboring points to each other with a continuous line. Now, while line charts are very simple to understand, they’re too simple, actually.

How do you read a line graph example?

A data point on a line graph represents the quantity or a number that matches a particular time in the x-axis. In the example shown, the number of bicycles sold in the month of January is 50. Similarly, in the month of February 30 bicycles were sold. We can interpret this data for each month using the data point.

How do I read a trade in MT4?

You can view trade history in MT4 via the ‘Terminal’ window, which you can open and close using the shortcut ‘CTRL+T’. In the ‘Terminal’ window, click on the ‘Account History’ tab.

How do you read charts and diagrams?

To interpret a graph or chart, read the title, look at the key, read the labels. Then study the graph to understand what it shows. Read the title of the graph or chart. The title tells what information is being displayed.

How do I read a forex chart?

To read a Forex chart you should: 1 Open a chart in your trading platform (MetaTrader 4, for instance) 2 Choose a chart type: A line chart, a bar chart or a candlestick chart 3 Understand the price points and levels that are displayed in the chart 4 Identify the chart timeframe: This could go from a 1-minute chart to a monthly chart.

What is a line chart used for in trading?

This type of chart is usually used to get a “big picture” view of price movements. The line chart also shows trends the best, which is simply the slope of the line. Some traders consider the closing level to be more important than the open, high, or low.

What types of charts do professional forex traders use?

One of the most popular types of charts used by professional forex traders is the point and figure chart. This allows them to filter exchange rate moves, identify clear support and resistance levels and even trade specific patterns.

What do the vertical bars mean on a forex trading chart?

The vertical bar itself indicates the currency pair’s trading range as a whole. As the price fluctuations become increasingly volatile, the bars become larger. As the price fluctuations become quieter, the bars become smaller. The fluctuation in bar size is because of the way each bar is constructed.