It’s actually my own contention that the FOREX traders who make long-term profits should be really very educated ones. One very basic part of the entire trader’s beginning education should always include the learning of reading price charts in the right way. Price charts are actually nothing so difficult. They are just the graphical way to show over time movement of price, and are sometimes known as the beginning or the foundation step of all the “technical analysis.”

You can simply put it in this way; technical analysis is defined as the method of applying large number of formulas and measurements to a specific price chart in order to make a prediction that what the trading market will be doing in the near future. There are large numbers of good books that are available on this particular subject, and it is really very essential that you and all the other FOREX traders who want to be really very successful should add them to their trading library.

Now lets us discuss about trading charts in brief. In general there are two major and the most important types of price and time charts that are available in the FOREX trading market and which is used by each and every the FOREX trader.  Both the type of trading chart has something that is really very similar. Some of The elements which they have in common are that both of them show various prices of the FOREX trading market like the open price, the high and the highest price, the low and the lowest price, and the closing price of whatever frame of time they are charting.

1. The first one that I am going to discuss is t5he price chart that is present in the forms of bar and hence they are called Bar Chart.

Bar Chart are the ones that look like long or small vertical lines, with a very small line on the horizontal side and that too on the left side, and even there is  a small horizontal line which is present on the right side. The top most line on the vertical side indicates the high price of the trading bar, whereas the line present at the bottom on the vertical side indicates the low price.

2. The second type of trading chart that I am going to discuss here is the Candlestick Chart.

These are the type of trading chart ones that are used by most of the FOREX traders today. They are drawn in such a way that they show a really very long or a very short body with a small line, which is sometimes extended out from the top, and on the other hand it is sometimes extended out from the bottom of the body.