BASIC FOREX TRADING COURSE --- Lesson 3

Now to the basics.

There are basically 3 types of charts:

Line Chart

Bar Chart and

Candlestick Charts.

I shall be concentrating on the Candlestick charts as it gives us complete information.

Here is how a Line Chart looks like:

Here is how a Bar Chart looks like :

And here is how each bar looks like:

Here is how a Candlestick Chart looks like:

And here is how candlesticks look like:

When the price is moving up we get the White Candle and when the price is moving down we get the Black Candle. If you study the White Candle first you will notice that the price opened at the base of the body and came down to the Lower Shadow then climbed up to the Upper Shadow (also called the wick of the candle) and eventually closed at the upper end of the Body. This is called the Ascending Candle which shows the price is on the uptrend. The Uptrend Candle is sometimes coloured Blue or Green in some coloured Charts.

Now come to the Black Candle. You will notice that the price opened at the upper end of the Black Body, went upto the Upper Shadow then came down to the Lower Shadow and eventually closed at the bottom of the Black Body. This is called the Decending Candle. This type of candle shows that the price is falling and the market is at a downtrend. In coloured charts this type of candle is usually coloured Red.

And here is how the coloured candles look like:

In your next Lesson, you will Learn all about Trends and Trend Lines and How to Read them.

Keep watching for your Next Lesson...