Written by Robert McKinley

Review of Forex Analysis and Forex Charts

There are 2 types of Forex analysis:

1. Fundamental: It looks at the various factors affecting the economy of a nation. Generally speaking, the value of a nation’s currency is determined by the health of its economy.
2. Technical: It uses charts to look at and analyze currency price movements. In doing so, it helps Forex traders identify trends, which can often reveal profitable trading opportunities.

To one degree or another, most successful traders utilize both types of analysis.

There are 3 types of Forex charts:

1. Line charts: Basic charts, which indicate closing price points.
2. Bar charts: In addition to closing price points, they show opening price points and high and low price points.
3. Candlestick charts: In addition to the information shown in line charts and bar charts, candlestick charts clearly show the range between opening and closing prices and they are visually and structurally easier to read and interpret.

The next lesson is Introduction to Japanese Candlesticks