The Authority’ on Price Action Trading. In 2016, Nial won the Million Dollar Trader Competition. Even if you have no previous experience or knowledge of trading the markets you have probably seen a forex chart with news chart of price on the nightly news or in a text book at some point. USD is up although currently is in the midst of a downward correction and has been range-bound overall this year.
Zooming out and looking at a daily or weekly line chart can give you a good idea of dominant trend direction. A bar chart shows the closing price as well as the open, high, and low price for the time period you are looking at. The top of the vertical bar indicates the highest price paid during that time period while the bottom of the bar indicates the lowest price paid during that time period. The entire length of the bar from top to bottom thus indicates the range of price over the time period you are looking at.
NOTE: A bar is simply one segment of time, whether it is one day, one week, or one hour. Open, the High, the Low, and the Close for that particular currency. Candlestick charts show the same information as a bar chart but in a graphical format that is more fun and useful to look at. Candlestick charts indicate the high and low of the given time period just as bar charts do, with a vertical line.