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INTRODUCTION

Forex Market

It is important to understand that in the forex market you are trading currency pairs as a single unit. These pairs consist of two different currencies and are priced based on the value of one currency divided by the other.

Technically you are making two trades when you trade any forex pair. You are buying one currency while simultaneously selling the other.

With the AUD/USD you are buying the AUD while selling the USD when you go long the pair.

I ASKED FOREX AND SAID
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Types of Charts

* OHLC "Bar Charts" - Open-High-Low-Close charts, also known as bar charts, plot the span between the high and low prices of a trading period as a vertical line segment at the trading time, and the open and close prices with horizontal tick marks on the range line, usually a tick to the left for the open price and a tick to the right for the closing price.


* Candlestick chart - Of Japanese origin and similar to OHLC, candlesticks widen and fill the interval between the open and close prices to emphasize the open/close relationship. In the West, often black or red candle bodies represent a close lower than the open, while white, green or blue candles represent a close higher than the open price.


* Line chart - Connects the closing price values with line segments.


* Point and figure chart - a chart type employing numerical filters with only passing references to time, and which ignores time entirely in its construction.

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