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Chapter 7, Part I. Chart types. Page 7

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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    In general, candlestick charts are more graphic than bar charts and visual perception of them I easier than bar charts due to width of each candle (it is wider than a bar) and due to color.

    #7 Red & Green 4-hour AUD/USD Candlestick chart
    [​IMG]

    Pipruit: Cool! It’s much easier to understand, than a bar chart.

    Commander in Pips: Well, in fact, this is a question of a habit. When you deal most of time with a particular type of chart, you will get accustomed to it very fast. You can even use your own choice of colors:

    #8 Custom-colored 4-hour AUD/USD Candlestick chart
    [​IMG]

    Pipruit: Please stop – it’s making my eyes hurt.​
    Commander in Pips: Ok, just one thing, that I want to add about candlestick charts. They have some solid advantages:

    1. They are easy to interpret, because they larger and different colors can help much with it. You just take a look at the chart and understand what is going on;

    2. Candlestick patterns easier to see, because candles are bigger than bars.​

    In spite of this, many professional traders prefer bars. In fact, this is a question of trading strategy and habits. It’s obvious that if your strategy involves candlestick patterns – you will use candlestick charts. Anyway, understanding of bars and candles is very desirable.




    P.S. This lesson was written by Sive Morten, who has been working for a large European Bank since April of 2000, and is currently a supervisor of the bank's risk assessment department. Sive's knowledge of forex market and banking industry is vast and quite complete. If you have any specific questions about forex, banking industry, or any other financial instruments, please post them below, we'll notify Sive, and get them answered within 1 week.



    Note: FPA ranks are earned in the battles against scam, not in the classroom.
     
    #1 Sive Morten, Dec 15, 2013
    Lasted edited by : Feb 10, 2016
    Hamza Samiullah and fran alvarez like this.
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