![Bar Bar](/uploads/1/2/5/4/125423311/999191624.jpg)
Bar graphs are an excellent way to present comparisons and changes in data over time. This article discusses different types, when to use bar graphs, how to. How to Analyze Graphs. In a picture graph, look for the line with the highest amount of pictures. For a bar graph, look for the highest bar. For a line graph and a scatter plot, look at the slope of the line. If the line is pointing to the upper right corner, then the slope is positive. If the line is pointing to the lower right corner, then the slope is negative.
The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid.The vertical bar itself indicates the currency pair’s trading range as a whole.The horizontal hash on the left side of the bar is the opening price, and the right-side horizontal hash is the closing price.Here is an example of a bar chart for EUR/USD:Take note, throughout our lessons, you will see the word “bar” in reference to a single piece of data on a chart. We simply substituted green instead of white, and red instead of black. This means that if the price closed higher than it opened, the candlestick would be green.If the price closed lower than it opened, the candlestick would be red.In our later lessons, you will see how using green and red candles will allow you to “see” things on the charts much faster, such as uptrend/downtrends and possible reversal points.For now, just remember that on forex charts, we use red and green candlesticks instead of black and white and we will be using these colors from now on.Check out these candlesticksBabyPips.com style! Awww yeeaaah! You know you like that!Here is an example of a candlestick chart for EUR/USD. Isn’t it pretty?The purpose of candlestick charting is strictly to serve as a visual aid, since the exact same information appears on an OHLC bar chart.The advantages of candlestick charting are:.
Candlesticks are easy to interpret, and are a good place for beginners to start figuring out forex chart analysis. Candlesticks are easy to use! Your eyes adapt almost immediately to the information in the bar notation. Plus, research shows that visuals help with studying, so it might help with trading as well!. Candlesticks and candlestick patterns have cool names such as the “shooting star,” which helps you to remember what the pattern means. Candlesticks are good at identifying market turning points – reversals from an uptrend to a downtrend or a downtrend to an uptrend.
You will learn more about this later.Now that you know why candlesticks are so cool, it’s time to let you know that we will be using candlestick forex charts for most, if not all of forex chart examples on this site.