What online chart can a trader choose
What online chart can a trader choose?
When choosing the way the online chart will be displayed, keep in mind the variety of elements used. The classics are Japanese candlesticks, painted in red and green, the least informative view - a curve line or area. However, there are also Renko charts, ticks, Heiken Ashi, Kagi and others.
Which chart online can be considered the most suitable?
Of course, the most popular are Japanese candlesticks. They display information very conveniently, showing the maximum known values. Even if you quickly assess with a glance such a chart, then by the appearance and shade of candlesticks you can realize what forces still prevail in the market (sellers or buyers) or observed a relative balance. Another good thing is that the signal from the candlesticks on the online charts of a trader is visualized before it is generated by the indicator. The use of candlestick analysis is recommended for higher timeframes. If we talk about disadvantages, it is the presence of subjectivism when reading the online chart.
Each candle consists of a body and two shadows. Their ends are the extreme values that the cost reached when the candle was formed. The boundaries of the body are the prices at which the opening and closing occurred. Provided Open > Close, the body of the candle becomes black or red. If Close > Open, it becomes white or green, respectively.
It is similar to Japanese candlesticks in functionality of a trader's chart drawn from bars. Here the roles of Open and Close are played by the side-draw on the left and right, respectively, and the column itself shows the range of quotes movement for a specified time period.
Only by Close a linear chart is built. It provides a minimum of information and does not allow you to see how the price has changed within a selected period of time. Working with it is not recommended. Online chart.
More exotic price mappings
If you consider unusual ways of providing information, these are graphs:
Renko. They are formed of dark (bear) and light (bull) bricks. They are suitable for determining resistance and support levels, generating signals for trend reversal. The tool is ideal for trend trading. While the other instruments already signal market reversal, the types of Renco charts show trend uniformity, allowing the trader to stay in position longer, increasing profit. The disadvantage is that the bricks are formed slowly, and they are not bound to the time.
Kagi. The time factor is ignored. Familiar patterns look very unusual and difficult to navigate in them at first. The recommendation is to use them on higher timeframes. It is important to select the threshold value of specifying the moment of reversal.
Zero crosses. Tip - trade from H4 and above. The principle of construction is identical to the online Renaissance chart. You should set a certain threshold for value changes. If it is exceeded, a new square "X" will be drawn when the price rises and "0" when it falls. As a result, only crosses or only zeros will be shown in the columns.
What's the most important thing?
The main thing when choosing Forex charts online is to work with them comfortably. They must provide as much useful information as possible in a convenient way. Only under these conditions, the trader's strategies will bring profit.