Price charts may be simple line #graphs, bar graphs or even
#candlestick #graphs. These are #graphs that show prices during defined
time frames. These time frames may be anyplace from minutes to
years or any time interval in between.
Line #charts are the easiest to read, they'll show you the broad
overview of price movement. They only show the #closing price for the
specified interval, they make it really simple to pick out patterns and
trends but don't provide the fine detail of a bar or #candlestick chart.
With a bar chart, the length of a line displays the price spread during
that time @interval. The bigger the bar is the greater the price
#difference between the high and low price during the interval.
It's easy to tell at a glance if the price rose or fell because the left tab
shows the #opening price and the right tab the closing price. Then the
bar will give you the price variation. When printed bar charts may be
difficult to read but most #software charts have a zoom function so you
are able to easily read even closely spaced bars.
Then the bar will give you the price @variation. When printed bar charts may be
difficult to read but most #software charts have a zoom function so you
are able to easily read even closely spaced bars.@Price charts may be simple line graphs, bar graphs or even
#candlestick graphs. These are graphs that show prices during defined
time frames. These time frames may be anyplace from minutes to
years or any time interval in between.
Line charts are the easiest to read, they'll show you the broad
overview of price movement.
They only show the closing price for the
specified interval, they make it really simple to pick out patterns and
#trends but don't provide the fine detail of a bar or #candlestick chart.
With a bar chart, the length of a line displays the price spread during
that time interval. The bigger the bar is the greater the price
@difference between the high and low price during the interval.
It's easy to tell at a glance if the price rose or fell because the left tab
shows the opening price and the right tab the closing price.
Then the
bar will give you the price @variation. When printed bar charts may be
difficult to read but most #software charts have a zoom function so you
are able to easily read even closely spaced bars.
Price charts may be simple line graphs, bar graphs or even
#candlestick graphs. These are graphs that show prices during defined
time frames. These .
Take A Good Look
Originally developed in Japan for breaking down #candlestick
contracts #candlestick charts are really useful for analyzing #FOREX
prices. #Candlestick charts are very similar to bar charts they both
show the high, the low, open and close price for the suggested time.
However, the color-coding makes it much easier to read a #candlestick
chart, commonly a green #candlestick #indicates a rising price and a red
one @indicates a falling price.
The actual #candlestick shape in reference to the #candlesticks around it
will tell you much about the price movement and will greatly aid your
analysis. Depending upon the price spread various patterns will be
formed by the #candlesticks. A lot of the shapes have some rather
exotic names, but once you learn the #patterns they're simple to pick
out and analyze.
Price charts are not commonly used by themselves to get the full
@affect you need to supplement them with some technical indicators.
@Technical indicators are commonly grouped into some pretty broad
classes. A few of the more common ones used to monitor and track
the @market movement are: trend @indicators, strength indicators,
#volatility indicators, and cycle indicators.
Here is a list of a few of the more commonly utilized indicators as well
as a brief description.
@Average Directional Movement Index (ADX) – This index will help
#indicate if the market is moving in a trend in either direction and how
strong the trend is. If a trend has @readings in excess of twenty-five
then this is @considered a stronger trend.
@Moving Average Convergence/Divergence (MACD) – This shows the
relationship between the moving averages which allows you to
@determine the momentum of the market. Any time that the signal line
is crossed by the MACD it's considered to be a strong market.
Stochastic Oscillator – This compares the closing price to the price
range over a specific time frame to determine the strength or
@weakness of the market. If a currency has a stochastic of greater than
eighty it is considered overbought. However if the stochastic is under
twenty then the #currency is considered undersold.
@Relative Strength Indicator (RSI) – This is a scale from 1 to 100 to
compare the high and low prices over time. If the RSI rises above
seventy it is considered overbought where as anything below thirty is
considered oversold.
@Moving Average – This is produced by comparing the average price
for a period of time to the #average price of other periods of time.