Forex Basic Charting

In using charts to analyse currency movement, we tend to use either the bar chart or the candlestick chart. Both convey similar forex information but are displayed in different ways.
Forex Bar chart:
Forex bar charts are used to convey, in a graphic form, information of the open,high,low, and close. These are essential for analysing price information. Each bar represents the open,high,low and close of a forex price movement observed in a certain time period. This time period is set by the user and can range from one minute to one day,weekly, or monthly. A series of bars will provide a history of price movements, which the chartists uses to analyse and predict price movement.

Forex Candlestick charting:
Misunderstood. That can be the only explanation for Japanese Candlesticks, the most proven investment technique in history, to be so underutilized. This technique has been exposed to the U.S. investment community for approximately twenty-five years. Yet it is only recently that interest has picked up in this highly accurate investment technique. The investor who takes the minimal time and effort to master candlesticks will reap inordinate profits. This is not an empty promise. Basic analysis of Japanese Candlesticks produce a couple of irrefutable conclusions.

Forex Candlestick charting displays similar forex price information as the bar chart, such as the open, high,low, and closed. However, the graphical way in which this similar information is displayed differs. Depending on whether the closing price is higher or lower than the opening price, the color of the candle is different . When the closing price is lower than the opening price, the color of the body is dark. IF the closing price is higher than the opening price, then a light colour body is displayed. I personally like using the candlestick charting. One look at the color and I know if the forex market is up day or a down day. Using the bar chart, I will need to look at the bar's opening and closing more closely to find out that forex information.