In order to predict the direction a particular currency pair will take on the foreign exchange market, a technical analysis or a fundamental analysis is carried out. Technical analysis, as the name suggests, is based on the study of technical graphics. There are several kinds that we reveal to you in this article.
Online charts are the simplest to read. They consist of a single line built on each fence. They distinguish the general movement of a currency pair over a given time horizon.
Bar charts are a little more complicated to apprehend than those online. They show the opening and closing prices as well as the highest and lowest levels at which the asset is traded.
Japanese chandelier graphics are the most difficult to read. They give the same price information as the bar graphs but in a different, clearer way. The spark plugs also indicate the highest and lowest levels for each rating. Finally, the color of the candle gives one last piece of information. If it is red then the pair fenceed lower than the opening and if it is green, it is that it has fenced higher.