Why do traders prefer Bar chart?
Nowadays every Forex trader is familiar with Bar charts. Bar chart is a kind of Forex charts. Charts are a part and parcel of Forex trading. The ability to effectively read Forex charts is a key to success in Forex trading. Forex chart is just a map that leads to profit in the treasure hunt of Forex trading. You can easily have an idea of the popularity of Forex trading with the statement that nowadays even housewives and teenagers have become expert in reading charts of currencies. They can accurately predict the future movement of the currencies. Therefore you must devote your time to learn reading charts if you plan to enter this arena of currency trade.
Features of Bar Chart:
There are different kinds of charts that traders use and analyze to track the change in the value of currencies. The very charts also help to predict the future movement of the currencies. However the most preferred chart is Bar chart. Here the question rises, that why bar charts is the most widely used one. The answer is very simple; its features make it the trustworthy Forex chart.
Opening & Closing Values:
First of all, unlike other charts it does not show just the closing value of a currency but also reflects the other related information as well. In trading, opening price of a currency is equally important for a trading set up. The bar chart understand it vital fact and throws light on the opening value of a currency as well. The left dash of the graph shows the opening value of a currency. Alternatively the right dash of the graph reflects the closing value of that currency.
Secondly, it also shows the significant points of a currency such as the highest and lowest values etc for a particular period. Such significant points are called the trading range of that currency. A vertical bar of the graph depicts the trading range of that particular currency.