three bars candles and charts welcome everybody I'm rob Booker welcome back to our FX trading 101 lesson sponsored by forest park FX bars candles and charts before we get into anything else and we are going to do a lot more chart stuff later on I want to before
we go any further it's going to be important that we just talk about these basic three things bars and candles are the way that generally traders will express price on their charts and we'll take a look at that in just a second and charts are the place where
we express that most currency traders are technical traders which means we take a look at these charts we take a look at the screen and when we take a look at the screen we I don't want it to be blue I just want it to be all right
great so most traders will pull up a chart like this and maybe they will color the background I think we have a black background one two don't we we should have one but I don't know where it is well we're going to take a look at here this
is a chart that we're looking at right now and on this chart our candles which we're gonna look at and I made the colors wrong and I want to change this before we proceed there we go okay excelente this is a chart I think you probably already knew
that but I was just making sure this is the canvas on which price is painted and from which we make our decisions most traders are technical some traders don't look at any of these charts and simply focus on the quotes or economic stuff or whatever else but 99%
of all FX traders are going to be technical analysts and technical traders meaning they're going to look at a chart and they're gonna size things up on the chart your charts in the world of currency trading are going to be made up of bars or candles in most
cases candles look like this that's what a candle looks like it'll have a body in the middle and then a shadow or a wick on either end you can have candles with small bodies or no bodies and long wicks or you can have candles with long bodies and
almost no wicks or anything on them you can have candles that are darkly colored inside which means they've been moving down or you can have candles with light colors on the inside which generally mean that price has been going up if we go back over here to our
charts you can see this pretty good the black backgrounds with no interior those have been moving up and the white background or the filled in candles which are white in this case had been moving down and your charts are going to be freely alterable by you Metatrader allows
you to change the colors of these things you can have yellow white green all kinds of different colors you can change the background of your charts to be dark they say that darker background charts are easier on your eyes when you're looking at charts for long periods of
time that's just a little side note now some traders don't like to use candles they like to use bars and bars are going to look like this so I'll move up here a little bit and a bar is going to look like this it's going to have an
open and a closed area and wicks or shadows or whatever they're called and I don't use these at all but if you'd like to or want to you can use those they either end up where they end down and so forth and so on and whatever else on
a bar chart the little nudge that sticks out to the right is the closing price the little nudge that sticks out to the left is the open price and then this is the low that it reached and that's the high that it reached those are bars and candles
we're going to talk a lot more about analyzing stuff or taking a look at these things later on but that's what a bar or a candle is now a bar or a candle on a chart represents a certain excuse me sorry about that a certain period of time
a certain period of time so each candle I use candles but I don't I don't care if you do like them or don't like them each candle on your chart will represent one period of time it could represent 1 minute 1 M or sometimes it looks like M
1 it could represent 1 hour or hour 1 some people will call that a 60-minute chart it could represent 1 day or on some charts D 1 or 1 month 1 minute 10 minutes 5 minutes and so on inside of Metatrader which is the largest the most widely
used platform at the top of the charts in this area up here we can change from m1 to m5 one minute to five-minute that means that every single one of these candles represents five minutes of time or we could switch it to a one hour and every single
one of these candles represents one hour of time or we could switch it to a one-week chart and each one of these bars or candles represents one week of time all right that's just the basics on loading up your charts and looking at bars and candles and it's
gonna be important because in the next lesson we're going to talk about long-term versus short-term trading I've been short all my life thank you too for spark effects for sponsoring these videos if you're interested in FX trading contact forest park FX to receive cashback rebates on every trade
you place and open a trading account you can go to forest park FX calm remember forex trading carries a significant risk of loss terms and conditions will apply thanks for being here everybody we'll see you in the next lesson
