Forex

LINE CHARTS

Line charts, also commonly referred to as close-only charts. Line charts are constructed by connecting a line through closing prices for a specific trading period that is being analyzed; such as, hour, day, week, and month.

[B]HI - Line charts
[/B]line charts are their drawn by connecting the highs and lows prices for a specific trading session.

CANDLESTICK CHARTS

A price charting technique originally developed by Munehisa Homma, a renowned and extremely successful Japanese rice trader who was an active trader in 1700s. Drawing a candlestick requires the high and low for a time period, like a bar chart. Drawing a candlestick depends also on how the close and the open prices are related to one another. The thick part of the candlestick is referred to as the real body and represents the price range between the opening and closing prices. A real body that is not filled in, that is, hollow, indicates that the closing price was higher than the opening price.

When the closing price is below the opening price, the real body of the candlestick is filled in, that is, black. The thin lines extending from the body are referred to as shadows and the highest point of the upper shadow represents the high price in that specific time frame. The lowest point on the lower shadow represents the low price for the period being studied. You can also note that certain candlesticks figure have no shadow or thin lines because the high price was the same as the close or the low price was equal to the open price.