Types of Charts | Merit Forex

1.Line Chart

This type of chart is designed by drawing a straight line from one closing price to the next closing price. It is considered as one of the simplest ways to read the history of price movement but not as the most informative chart type. Here is an example of GBP/USD Daily Line Chart:

2.Bar Chart

The bar chart shows not only the closing prices, but also the opening price, as wells as highs and lows for a given time period. The bottom of the vertical bar indicates the lowest traded price for that time period, while the top of the bar indicates the highest price paid. So, the vertical bar indicates the currency pair’s trading range as a whole. Here is an example of GBP/USD Daily Bar Chart:


OpenThe little horizontal line on the left is the opening price

HighThe top of the vertical line defines the highest price of the time period

LowThe bottom of the vertical line defines the lowest price of the time period

CloseThe little horizontal line on the right is the closing price


3. CandleStick Charts

Much like the Bar chart, Chandlesticks show the detailed information about price movement but in a more visually appealing way, making it the most popular type of a price chart.

Here is an example of GBP/USD Daily Candlestick Chart: