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Chapter 7, Part I. Chart types. Page 3

Discussion in 'Complete Trading Education- Forex Military School' started by Sive Morten, Dec 15, 2013.

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  1. Sive Morten

    Sive Morten Special Consultant to the FPA

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    Again, you have to know the time-frame of particular chart that you are watching.

    If we say “daily chart” it means that each bar on this chart lasts one day, although chart itself can include 150 days (i.e. bars). I think you’ve got the point.

    #3 Each bar here lasts for 4-hours, because this is 4-hour chart of AUD/USD.
    Here you can see information for particular bar that we’ve marked.

    [​IMG]




    First of all, you have to know the time-frame of particular chart that you are watching.
    Now, let’s study what each bar on the chart means:

    #4 Examples of bars
    [​IMG]

    The small horizontal dash line from the left side of the bar shows opening price of that particular trading period. On the chart #3 “O” stands for “Open price”. It shows the price of the first trade that has happened on the market since starting of this period. For instance, let’s assume that this is 30-minute bar, and it starts at 15:00(ends at 15:30). Assume that first trade after 15:00 (since bar started) has happened at 15:00:17, so this is the open price of current bar. Take a note that this is not the quote that was on market at 15:00, this is the price at which the first real trade has happened in the 15:00-15:30 time period.



    The top point of any bar shows the highest price that took place in this particular period. In our example bar shows the highest price during the 30 minute period from 15:00 till 15:30. Also this is not the highest quote during this period – this is the highest price at which real trade has happened. On our chart#3 “H” stands for “High price”.

    The low of any bar shows the lowest price that took place in this particular period. In our example bar shows the lowest price during the 30 minute period from 15:00 till 15:30. Also this is not the lowest quote during this period – this is the lowest price at which real trade has happened. On our chart#3 “L” stands for “Low price”.
     
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Feb 10, 2016
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