Kinds of prices and time units. Charts for the technical analysis are being building in coordinates price ( the vertical axis ) time ( the horizontal centre ). The following kinds of currency prices represented on charts are being distinguished on Forex: * open - a price at the beginning of a trade period ( year, month, day, week, hour, dwarf or a certain amount of one from these units ); * close - a price at the end of a trade period; * high - the highest from prices observed during a trade title; * low - the lowest from prices experimental during a trade period. Providing technical analysis uses charts for different time units from 1 year or more till 1 minute. The bigger is a time unit applied for the chart plotting the more select is a time span to analyze price movements and to determine the extreme trend by means of the chart. For the little trading charts for less time units are more proper. Line chart. The line chart is plotted connecting its single prices for a selected time. The most popular line chart is the general chart. Although any point in the day can be plotted, most traders focus on the freeze price, which they detect as the most important. But an immediate problem with the daily line chart is the fact that it is impossible to spot the price activity for the balance of the period as great as gaps breakups in prices at joints of trade periods. Nevertheless, line charts are more easier to envision. And, technical analysis goes well beyond chart formation; in order to execute certain models and techniques, biz charts are better suited than any of the other charts. Bar chart. The bar chart consists from split histograms. To plot a histogram in coordinates price time the points responding to high, low, open and stuffy prices for a time period analyzed should be marked on the one vertical bar. The opening price usually is marked with a little horizontal line to the left of the bar; and the closing price is glaring with a little alike line to the right of the bar. Bar charts have the evident advantage of displaying the currency range for the word selected. An advantage of this chart is that, unlike line charts, the bar chart is impressive to contrivance price gaps. Hence, it is impractical to see on a bar chart extremely all price movements during the period. Candlestick chart. The candlestick chart is directly related to the bar chart. It also consists of four major prices: high, dispirited, open, and close. In calculation to the common readings, the candlestick chart has a set of meticulous interpretations. The latter is possible thanks to the apropos visual observation of that chart. The opening and closing prices form the shape ( jittai ) of the candlestick. To indicate that the opening was lower than the close, the body of the bar is left blank. Current banal electronic displays allow you to keep it zero or peerless a color of your choice. If the currency closes beneath its opening, the body is filled. In its unique form, the body was painted black, but the electronic displays tolerate you to keep it filled or to select a color of your selection. The intraday ( or weekly ) directive on a candlestick chart can be traced by cause of two " shadows ": the upper shadow ( uwakage ) and the lower shadow ( shitakage ). Just as with a bar chart, the candlestick chart is unable to depict every price scene during a period ' s bustle.
