Many people who are new to foreign exchange investment feel confused by the numerous foreign exchange trading charts. So, what kinds of icons are there in foreign exchange trading, and how do you look at them? The editor below will introduce to you the more important ones in foreign exchange trading.

1 Candlestick chart (K-line chart)

Candlestick chart is the most widely used technical analysis graphic in the foreign exchange market today. The candle chart emphasizes the relationship between the opening price and the closing price, and the price changes are analyzed through the negative and positive lines of the candle chart. Candlestick charts are the most basic technical graphics that novices need to learn.

2 Bamboo Line Diagram

Bamboo Line Diagram is called Bamboo Line Diagram because it looks like a bamboo joint. The biggest difference between the bamboo chart and the candle chart is whether there is a solid body. The middle cylinder of the candle chart is a solid body, while the center of the bamboo chart is hollow. The Bamboo Line Chart uses vertical strips to represent data changes in each time period.

3 Closing price line chart

The closing price line chart is a simplification of the K-line chart. It is a curve formed by continuously drawing the closing price of a single K-line of the exchange rate. The advantage of this kind of graph is that it can eliminate the difficulty of graph identification caused by abnormal fluctuations. It is especially helpful in identifying wave patterns and is very beneficial to us in grasping the overall operating rhythm of the exchange rate. The closing price line chart is the second most widely used chart.

4 Time Period Charts

In the foreign exchange market, the chart formed by the trend of any currency within a period of time is a time period chart. Generally, you can see monthly, weekly, and daily charts. Line, hourly chart, 30-minute chart, 15-minute chart, 5-minute chart, 1-minute chart and other time period graphics.

The most commonly used charts in foreign exchange are candle charts and closing line charts. These are the technical charts that novice foreign exchange traders must read.