The best type of chart in forex trading

The best type of chart in forex trading - Using charts or charts is the most important thing in monitoring the price movements of various assets in the financial market. Included in forex trading, understanding the types of graphics is also important.

All types of forex analysis (technical and fundamental) will use charts to assess current market conditions while compiling projections of future price movements.

Therefore forex traders must know the various types of graphics that are commonly used in order to be able to choose which one is the most suitable for trading activities.

In general, there are 3 charts in forex trading, namely: Line Chart, Bar Chart, and Candlestick Chart. 

To know the advantages and disadvantages and graphical forms, let's discuss below:

Line Chart 


Line Chart is a type of forex chart formed by drawing a line from one closing price to the next closing price. (This type of graph is the simplest type of chart compared to other types of graphics).


From the basis of these calculations, if arranged in a continuous manner, we can see price movements in the form of a line that keeps changing the direction of the price.

The time period can vary according to the timeframe (TF) that the trader chooses, can be in M1, M5, M15, M30, H1, H4, D1, W1 to MN.

Bar Chart


Unlike the Line Chart which only contains closing price information. On the bar chart, it also takes into account the opening price and the dynamics of the highest and lowest prices.

Therefore the Bar Chart is often also called Open, Low, High, and Close charts (OLHC).


In this Chart Bar, the stroke on the left of the bar represents the opening price, while the stroke on the right shows the closing price.

At the top of the Chart Bar represents the highest price, while at the bottom of the bar shows the lowest price in a certain time period.

The time period can vary according to the timeframe (TF) that the trader chooses, can be in M1, M5, M15, M30, H1, H4, D1, W1 to MN.

Candlestick Chart


This type of candlestick chart is the type of chart that is most widely used by traders in the world today.

This type of chart contains detailed price information for the same period as the Chart Bar, but the format is more beautiful and readable.


OHLC is displayed in the form of a candle, with an axis made of High and Low, while the candle rod represents the difference between Open and Close prices.

When the Open price is higher than the Close price, it means a decline, so that a Bearish candle is formed which is usually arranged in red.

Whereas if the Open price is lower than the Close price, it means an increase, so that a Bullish candle is formed which is usually arranged in green.

The time period can vary according to the timeframe (TF) that the trader chooses, can be in M1, M5, M15, M30, H1, H4, D1, W1 to MN.

Of the three types of charts, which one is the best for analysis in forex trading?

We need to know that among the three types of forex charts, the majority of traders use Candlestick charts because the information is complete and easy to read.

In addition, candlestick charts can form a formation of candlestick patterns that indicate a turning point in price movements, so it is often considered a high-accuracy trading signal.

For now, almost all forex trading platforms install candlestick charts as the default chart. If the graph on your platform is still in the form of a Line Chart or Chart Bar, then just change it to Candlestick manually.

Usually an option is available to change the type of graph on the menu bar row. You can also modify the Bullish and Bearish candle colors yourself, not necessarily red and green.

Actually besides these three types of charts, there are other types such as Renko, Kagi, Heikin Ashi, etc. But some types of graphite are usually not available on platforms and are usually included as additional indicators or graphics.

Actually there is still much that can be explored, but if it is for beginners, it is enough to learn candlestick first until advanced. Because the candlestick chart is a complex graph.