Forex Education Center/ Part 35 / FOREX FOR BEGINNERS COURSE / Lesson 16. Forex Bar Charts

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As a reminder the course is aimed for complete beginners.
I tried to keep the lessons short and to the point giving out clear examples
and videos where required.

Lesson 16. Forex Bar Charts :
Using Bar Charts is one way of studying and analyzing charts.
In this tutorial we will go though the basics of bar chart patterns and how they are used.

charting_intraday_5min.jpg

You may display the charts in bars where all price action information for that period is displayed in just 1 bar.
For example for 5 minute charts, every bar on the chart represents 5 minute period for that trading session.
The price at the top of the bar represents the high at that 5 minute period.
The price at the bottom of the bar represents the low at that 5 minute period.
The small horizontal line (-) at the left of the bar, represents the open price at that 5 minute period.
The small horizontal line (-) at the right of the bar, represents the close price at that 5 minute period.
Similarly if you switch the chart to 1 minute, every bar represents the price action for that 1 minute period with the high, low, open and close prices. This is the same for all currency pairs.
Also if you switch the chart to 1 hour, every bar represents the price action for that 1 hour period with the high, low, open and close prices. This is the same for all currency pairs.
Last but not least if you switch the chart to 1 day, every bar represents the price action for that 1 day period with the high, low, open and close prices. This is the same for all currency pairs.
So which time frame to use? It depends on your trading style. Being a scalper you will definitely use 1, 5 or 15minute charts. Being a intraday trader, you will probably use 1 hr, 4hr and 1 day (yes to draw trend lines), and for day traders you will definitely use 1 day or more time frames.

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Bar Colours:
If the session for the period closes higher than the open, normally in most trading platforms is shown in green, because the price for that period went up.
If the session for the period closes lower than the open, normally in most trading platforms is shown in red, because the price for that period went down
If the session for the period both the open price and the close price are equal, it indicates that the price did not went up or down for that period and it shows indecision during that period. .

Every comment, every upvote, every support is really appreciated.
Thanks For Reading,
@lordoftruth

If you missed to read my
previous posts from the series of Forex Education Center
You will find it in the down list:

 

Part 01 / Live Vs. Demo Trading Accounts

Part 02 / Slippage

Part 03 / ECN Market

Part 04 / What Makes a Successful Price ActionTrader 

Part 05 / The Manual of the Forex Art of War

Part 06 / The Don’ts when you Compare Forex Brokers

Part 07 / What is behind Currency Pair Trading

Part 08 / Banks: Beacons of Fraud

Part 09 / Win With CFD’s

Part 10 / Fight and Win the Bulls and Bears

Part 11 / How to Spot a Forex Trading Fraud

Part 12 /  Become a Master with News Trading

Part 13 / The Forex Risk Management State of Mind

Part 14 / Top 10 Forex Trading Tips for Beginners – The Road to Success

Part 15 / Trader’s Strategy Checklist

Part 16 / E Currency Trading

Part 17 / E CURRENCY TRADING MAP

Part 18 / FOREX TRADING TUTORIALS

Part 19 / FOREX TRADING COURSES

Part 20 / FOREX FOR BEGINNERS COURSE / Lesson 1. Trading Currency Pairs

Part 21 / FOREX FOR BEGINNERS COURSE / Lesson 2. What is scalping

Part 22 / FOREX FOR BEGINNERS COURSE / Lesson 3. Intra Day Trading

Part 23 / FOREX FOR BEGINNERS COURSE / Lesson 4. End of Day Trading

Part 24 / FOREX FOR BEGINNERS COURSE / Lesson 5. Traders Psychology

Part 25 / FOREX FOR BEGINNERS COURSE / Lesson 6. Best Trading Hours

Part 26 / FOREX FOR BEGINNERS COURSE / Lesson 7. How to interpret Prices of 

Part 27 / FOREX FOR BEGINNERS COURSE / Lesson 8. Forex Pip

Part 28 / FOREX FOR BEGINNERS COURSE / Lesson 9. Bid Ask Forex Prices

Part 29 / FOREX FOR BEGINNERS COURSE / Lesson 10. Broker Spread

Part 30 / FOREX FOR BEGINNERS COURSE / Lesson 11. Currency Leverage and Margin

Part 31 / FOREX FOR BEGINNERS COURSE / Lesson 12. Forex Lots

Part 32 / FOREX FOR BEGINNERS COURSE / Lesson 13. Forex PIP Value

Part 33 / FOREX FOR BEGINNERS COURSE / Lesson 14. How to Calculate Profit and Loss

Part 34 / FOREX FOR BEGINNERS COURSE / Lesson 15. Currency Trading Platform

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