Forex Ratings offers a professional Forex Chart tool with a wide range of customizable parameters. This new interactive forex tool will provide Forex traders with useful market information, no matter what experience level they have. Watch the Forex Charts and Forex Quotes move dynamically, without the need to reload the page. You can switch between any of 19 forex currency pairs and select necessary time periods. The selected candlestick interval can be set up between 1 minute and 1 month. You can also choose between different high and low zones with one click. Experienced traders will also find important features of our forex trading charts tool as our forex charts tool covers 19 most popular currency pairs on the Forex Market.
In a nutshell, it is a type or a style of bar-chart, which describes the movements of prices of equities, over a period of time and is a combination of a line-chart and bar-chart, with each bar representing the price movement range, over a given interval of time. This type of chart is most frequently used in the technical analysis of equity price patterns.
The candlesticks themselves and the formations they shape were given colorful names by the Japanese traders. This was, in part, due to the military environment of the Japanese feudal system during this era, candlestick formations developed names such as the "advancing three soldiers".
Candlesticks are, as a rule, made up of the body, which may be black or white, with an upper and a lower (the wick) shadow. The wick points to the highest and the lowest traded prices of a stock; and the body, the opening and closing trades. When the stock moves up – the body is white, with opening price at the body’s bottom and the closing price at its top. If the prices went down, then the body is black – with the opening price at the top and the closing price at the bottom. However, a candlestick does not, necessarily, need to have a neither a body nor a wick.
As I mentioned earlier, in this article, many traders prefer candlestick forex charts, primarily because they are more aesthetically appealing to the eye and, moreover, they have the distinct advantage of being far easier to interpret. Why? Because each candlestick provides an easily decipherable snapshot of the price action – a trader can immediately see and compare the relationship between the open and the close; together with the high and low.
The relationship, between the open and close is of vital information to a forex trader and this forms the very essence of candlesticks. With hollow candlesticks, where the close is greater than the open – indicates buying pressures. With filled candlesticks, where the close is less than the open – indicates selling pressures.