Base 5: Charts

The Chart or Graph

A graph is a visual representation of the value of a title.

In Forex, it represents the value of the base currency.

The value of one currency is always expressed in relation to another.

There is a chart for each pair of Forex.

A graph is composed of a time axis (horizontal)

and an abscissa of values (vertical) of the base currency.

A graph is also composed of candles.

They illustrate the fluctuation of the price in a very visual way.

Each candle represents a unit of time.

Timeframes

The periods on the graphs vary from one minute (M1) to one month (MN).

You can put a chart in one period or another.

In a graph each candle covers a period.

On a graph in M1, each candle covers one minute.

In M5, they each cover 5 minutes; And so on.

Here are the standard periods that can be found on a graph:

Types of Candels

Standard candles can be presented in 3 ways:

The Japanese Candlesticks, commonly used by amateurs,

Les Barres, popular especially with professional traders,

Lines, used in performances intended for the general public.

Bullish candles are colored red.

Bearish candles are colored green or blue.

Candle coloring is customizable, you choose.

Candles may change color during their lifespan.

When the current price is lower than when opening the candle,

it is colored red.

When the current price is higher than the opening of the candle,

it is colored in green or blue.

Japanese Candles

Japanese candlesticks have six elements:

1. Opening: Price level when opening the candle
2. Low: Minimum level reached by the price during the duration of the candle
3. High: Maximum level reached by the price during this same duration
4. Closure: Price level when closing the candle
5. Body: the portion between opening and closing
6. Wicks: the portions starting from the body to the extremities

The Bars

The bars have four elements:

1. Opening: Price level when opening the bar
2. Low: Minimum level reached by the price during the duration of the bar
3. High: Maximum level reached by the price during this same duration
4. Closing: Price level when closing the bar.

© 2016, 2017, 2018, 2019 Club SPN inc.

La négociation de titres implique un risque élevé et ne convient pas à tous les investisseurs. L’effet de levier peut opérer en votre faveur aussi bien que contre vous. Considérez attentivement vos objectifs d’investissement, votre niveau d’expérience et votre appétit du risque. 

Trading in securities involves a high risk and is not suitable for all investors. Leverage can work in your favor as well as against you. Carefully consider your investment goals, level of experience and risk appetite.

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