Why Daily Forex Trading is Favorable?

When novices get into forex trading business, they likely to think that it is easy to make maximum profits by spending a minimum amount of time. However, these type of trader quickly become chart/market obsessed and spend a notably large amount of time watching for price fluctuations, thus—in some case—leaving their family and professional lives behind. We will see in this article how to manage your business while maintaining a normal life and free time. Please note this presumable advice, it is better to get off the market more than losing your beautiful life instead.

For those who are beginners of this foreign exchange (forex) market, it is advisable to always stick to far longer-term charts such as daily or even weekly. Even if this category of trading is not reserved for beginners, it suits them better because it allows continuing one’s personal activities and at the same time to keep their “me time” as well.

The advantages of daily chart trading compared to the shorter time frame is explained in follows:

  • Less volatile and Easy to be Analysed. By keeping daily or weekly charts with your trading activities you will avoid sudden fluctuations in intra-day charts and be able to predict the market trend far more accurately.
  • Keep Your Life Healthy Psychologically. A trader who based on daily and weekly charts allows themselves to keep their current lifestyle. Indeed, you only have to look at the charts once a day—especially at the end of the day (even you can switch it any time that suit your schedule) to place your entry order and to manage your investments. By this means, no necessities to keep your nose glued to the computer screen.
  • Once in a while set up, and “everything” will be okay. By adopting the daily trading method, new-bee can still keep their jobs and thus maintain a normal life. Indeed, thanks to it that you place your orders once a day and then continue whatever activities you will do next. There is indeed no reason to monitor the market all day long—only checked it once in a while if you like—if you have correctly placed your “take profit” and “stop loss” orders.
  • Once again, Simple and Easy. Last advantage of daily trading method is because of its simplicity and ease. Indeed, these kind of charts are much more reasonable than very fast intra-day charts especially when you have not mastered your trading system out of your head. Traders can, indeed, take a longer time to think before embarking on the entry of transaction or leaving the market.

In the nutshell, the daily or weekly trading method is ideal for a beginner since it allows you to practice trading activities without becoming a real “geek” who does not let go of his control screens. An ideal practice in short to maintain a personal and professional life.

What is the difference of Forex Brokerage from the Ordinary Money Changer?

Firstly, there is no very basic distinction between online currency exchange/trading and the ordinary money-changer. Generally, both entities benefit from the spread. Spread is the left amount after subtraction between the buy-sell prices. Spreads between various institutions may differ relying on company policy. However, basically this is how this business goes.

Forex has its leverage mechanism. The existence of leverage, among others, is the most point or way in which physical exchange of money at the public money changer and forex trading are not the same. The mechanism of leverage allows buyer-seller to make high volume transactions with small investments. Thus, high gains can be achieved even in small movements in the transaction parity. The highest leverage ratio allowed in most country is 1: 100, which means that the investor can make a transaction with 100.000 USD with a guarantee of 1,000 USD. Yet, sometimes there are small broker offer higher leverage to attract consumers. The highest leverage offered by broker until this article published is 1 : 3000.

Another contrast between money changer and foreign exchange (FX) market is that the last is a bi-directional market. In physical market, we can only sell if we have goods (in this case, physical money itself). It is barely possibly to sell no money to changer office. On the other way, in order to benefit from the rise of an opposite currency pair, we may also make a sale transaction to take advantage of the decline as we do the buying transaction. For example, USD / TRY: 2.9000 level and we think it will drop by selling a sales process, we start to make profit at the moment when the parity starts to fall below 2.9000. Taking the resident producers in Turkey get out of raw materials bought dollars at time t, t + x is the risk of falling dollar prices at the time. Because the raw material at a low price can be purchased at a high price. In order to hedge against this risk, Forex markets have a sales position in USD / TRY parity so that even if the dollar falls, it gains a profit and avoids risk and is called a hedge.

Forex can be invested not only on currency pairs, but also on commodity products and indices such as gold, oil, copper and silver.

One of the major advantages of the FX market is the possibility to process data instantly. Forex market is open for 5 days and 24 hours. Therefore, currency can be dealed almost all the time (except when holiday). There is no opening and closing hours such as money changer office. Forex traders, for example, are expected to see a change of prime minister, resignation etc. when there is an unexpected event during the night. they can instantly evaluate the data and gain a change in the parity.

Forex markets are not physical. The physical delivery in the purchase-sale transactions is not applied. Traders do not need to take the high quantity of money to the changer office for trading. One can perform transactions by sending orders via the internet whenever and wherever he/she wants. When the investor wants to sell, the buyer finds the opposite because forex is the world’s largest financial exchange-market where daily sum of exchange overreach USD 5 trillion.

Charting Strategy – Forex Strategy for Traders

One who decided to be a Forex trader need to be concerned with charting in order to invest in a good price. It is important to be extensively involved with the latest techniques in order to have a solid knowledge of when to invest in a security. The chart technique basically allows a good prediction to discover a corresponding course for themselves. Beginners use different brokers to get a good start into the charting technique. After all, a little background knowledge must be available, how to deal with the chart s and what signals must be respected.

The technical analysis
The technical analysis is an integral part of the financial markets. Since the beginning of the twentieth century, investors have tried to capture particular ratios of values and thus to ensure that good entry opportunities for trading are found. Extensive studies are used to clarify fundamental key figures of a market or a company and to use these for forecasts. Price progressions are statistics that lead to clear signals using the indicator analysis. The basic assumption of the charting technique is that the past price trajectories of the past are repeated. Professional traders have noted points in charts, which must be kept as special instructions in mind. Important methods in the charting technique must be taken into account in order to be able to continue to value the course. Especially the following point should never be forgotten.

The trend is your friend
The basic rule for the charting technique and the analysis of the technical data is the saying “The trend is your friend” . This proverb is used permanently in chart analysis to make it clear that you should not oppose a trend. Striking movements should not be strengthened in their opposition, as the same trend direction is usually maintained. If a stronger movement should be the case, it is a turning point, which is signaled prematurely. Different extreme points are marked in an analysis in order to recognize significant changes early on. If there is a series of trends with many highs, a downtrend can be detected. But alsoSideways trends are present when a course is on the same summit for a long time, making only light swinging movements. A straight line can then be introduced to the charts, which gives a clear indication of a sideways trend. Basically, charts can run in three directions:
1. up
2. Down
3. Sideways
These movements can be detected in the chart analysis with different tools. Mostly the Bollinger Bands used to ensure high, medium and low stock price marking. It is important that the different trends are clearly defined, thus ensuring that the trend has a longer validity. A trend is then present until it breaks through the price charts and can be seen below or above the curve. It is important that the outbreak only happens after use. Here it is sufficient that the course is noted once a day in order to detect possible changes. According to experts, the last markings should be carried out after the closing price. Other experts see a trend as completed only when the price is up to three percent below or above the trend line that has existed so far.

Highs and lows
When analyzing the current prices, the high and low points are usually considered a bit closer to define trend lines. When it comes to securing and fixing price targets for a stock, the highest and lowest points can be used as a good guideline. If a chart assumes a downward movement, then a low should be detected, which develops from the point upwards. The low usually uses a support. Courses can rotate frequently and develop against a trend line.Once the price has changed, it usually will not change again. Support in this context is stronger the more it has served as a turning point. This can be recognized directly, if the past of the current values continues to be looked at. In addition, the price history is often repeated, which is why chart analysis experts would like to look at the past history of the course to make forecasts. The analysis should not only look at the values of a course from the last hour, but it is also important to look at the values of the past few days. Depending on the forecast period, the last period should be considered closer to use similar values as support.
The specialist uses resistance as an important factor in the analysis of a chart, which can help in the analysis. For this purpose, a resistance line is drawn, which is used as an obstacle within an upward movement. In a long-term chart, a breakthrough can be well recognized . For future charts, it will usually be hard to skip a certain area permanently. However, if the break of the resistance line can happen, the drawn directive can be used as a support line. This swap is a secure methodology for chart analysis. It should be noted here:
• Like previous support, the uptrend line can turn into a resistance when it has broken down
• Resistance lines and downtrend lines serve as support for the course after a breakthrough

When is a trend over?
Most traders do not just need to know when a trend starts, but when it stops. It will be asked what indicators for this findingmust be used. Some formations that can be recognized in a chart confirm a trend reversal. This includes the V formation. This term comes because of the sudden potential trend reversal, which can lead to a rapid downward or upward movement. Countermovements seem to look like a V quickly, which is the case in a fast rise. On a descent or fall of the course an A-formation can be seen. Of course, for the trend change, a reliable use of important indicators should be used to quickly detect a possible reversal. In practice, the constellation in this formation is relatively common, so shareholders should be more concerned with the specificity of the formation.

The double bottom
The double bottom is an indication that the formation, which can also be considered the letter W, can be seen in the downtrend. Investors will recognize by the scheme that it is a rising pricewhen the W formation has been completed. The double bottom denotes the double top, where there are two lows, a short rising rebound and another low point. The course floor is not extremely blasted, but the ground is stable and remains in the almost identical values. After the medium recovery has taken place, again a decrease can be detected, which is then associated with a sudden slope. This formation is relatively common, but most will be seen in monthly views, not on individual days.

Frequently Mistakes in the Forex Market

Here below a list of some oversights (of course not all mistakes possibly done by traders) that are often made by traders whether intentional or not.

  • High Volume Operations: Leveraged transactions require a different risk perception than in the spot markets. The proportional difference (leverage) between your transaction size and your master is a factor you must consider. Taking positions using the whole or the majority of the capital in the Forex market may cause you to lose your capital in a short time.
  • Determining Levels of Profit and Loss Stop: As it should be, if we are moving within a strategy, we have a target price when we are in position, and in case the risk is realized, we determine the price at which our position will be closed, how much loss we will incur, and profit and loss stop orders.
  • Carrying the Position in the Loss for a Long Time: If we do not determine the level of loss in advance and we are carrying our losses for a long time with the expectation that the market will return to our favor, our capital can dissolve to a great extent.
  • Getting out of the profitable position in a short time: As an investor, the reason for our loss is the profit expectation and we want to maximize our profits. Otherwise, we cannot finance our losses and we will have to witness that our portfolio is shrinking. If we don’t want this to happen, what we have to do is to wait as long as we can in our profitable positions, to move our stop orders into the appropriate level, and to use the loss stopper on the trail (trailing stop).
  • Making Emotional Decisions: All traders are expected to be free of emotions without exception for a forex trader and the hardest part is always to make isolated decisions from emotions. We will be successful to the extent that we can maximize it.
  • Making Transactions to Be Done: Trading in financial markets is a serious business that requires attention. Rational investors are aware that non-serious transactions will not offer regular earnings.
  • Makingvery short- term transactions: It is not difficult to build a system with very short-term forecasts, but it is a very difficult and stressful task that requires follow-up for any investor.
  • Making an action without gaining experience: Starting a process without creating a profitable strategy with trial accounts can be the most costly way to learn how to trade.
  • Transacting Based on Single Indicator Reference: Only single indicators are not sufficient references for buy-sell. Indicators are used for confirmation purposes when entering the position after the line-up analysis.
  • Unplanned Action: All movements in the market are assumed to be irrational. In such an environment, one of the important requirements of not losing is to have a plan.
  • Not Stopping the Stop Level: If we change the stop level because we are afraid to face a growing loss, this may be a harbinger of greater damage.
  • Acting independently of the strategy : The most important part of a strategy is a loyal practitioner.
  • Very Frequent Processing: High transaction costs means high risk. However, frequent transactions can be exhausting and stressful for the investor.
  • Moving with sensations : If we are just entering the position with sensations we are very likely to be wrong. Rational decisions need to enter the position.
  • Opening a position within sufficient informatioIf we think that we have insufficient knowledge, we should practice until we feel sufficient and we should get support from others for our deficiencies.
  • Excessive self-confidence: It is desirable for the investor to trust him / herself, but it causes us to not be able to analyze our overconfidence errors and not to accept that we can be wrong.

 

Money Management – What is to be considered?

Under Money Management (MM), the correct classification and investment of your own money is considered. It is often not just the appropriate and necessary strategy to think about. Rather, the successful traders have come to success due to their MM strategy. Mostly not the big fund or investment is made, which is put on a single share. Rather, the right division of capital must be considered to deal wisely with losses. A good money management strategy deals well with individual losses. The loss is limited in order to have enough capital after numerous failed attempts to carry out further experiments. This type of action also gives rise to risk management. Basically, every dealer has the goal to increase his money. However, this is only possible if the losses are compared to the profit. The goal of MM is maximizing profits and minimizing losses. Of course, the two sides influence each other, which means, however, that a smart need for action exists. To pursue a good money management strategy entails a higher total income.

As mentioned before, there are different strategies to start with money management. There are three types of capital management, which are worth mentioning:

  1. Core Equity Method
  2. Total Equity Method
  3. Adaptive Core Equity Method

In the first method, the Core Equity Method, it is an approach that assigns an amount to each position opened that is subtracted from the total fund balance. If a balance of 100,000 euros is available, only 5,000 euros should be added to a selected position. This means that 95,000 euros would be available for other positions. If another position is to be opened, a capital allocation of 3,000 euros can be made. This amount must be deducted from the capital in order to use a remaining amount of 92,000 euros. This core capital method, also known as net balance, is widely used in the market.

In this type of variant, the Total Capital Method, all available capital is added to the speculative capital. Everything is lumped together, including profits and losses. With a starting capital of 100,000 euros, a profit of a share of 2,500 euros is added to the balance. If losses are made, they will again be deducted from the total balance. Due to the waiver of the net amount as in the first method, the whole 5000 euros more would be available for trading.

The last method, the Adaptive Core Equity Method, is a combination of the last two methods presented. This combination requires a MM of capital allocation in the core equity method. Subsequently, this allocation is adjusted to the increased or decreased risk. If you start again with a capital of 100,000 euros and invest in a position with 5000 euros, the residual speculation amount of 95,000 euros can be used. If the price moves in the direction of your own position, the risk on the entry price can be reduced. In addition, if a stop loss is introduced, the risk of losses can also be reduced.

 

Money Management – Protecting Your Fund at the Very Start

Thing that sit comfortably in the first list amongst the most significant errands of money management (MM) is the use of the available fund in a targeted and planned manner. This prevents traders from using their money because of emotions, which in many leads to losses. For this, traders without MM often forget the formation of reserves , which are of great importance in certain situations. If trading is just out of the feeling, Forex are more likely to be a game of chance, which they are not.

Scatter capital and use it purposefully
One of the biggest mistakes in Forex is putting all the money on an option (capital protection). MM plans to distribute bets across multiple options. If possible, this should have different terms and different underlying types. Furthermore, only a certain proportion of the existing capital should be put on a single option. Experts advise beginners to invest a maximum of between 5 and 10 percent of the credit in the purchase of an option. Even with several lossy trades there is still enough money left to trade.

Stay realistic and do not act out of boredom
To have a good MM, it also needs to be realistic. Although returns of up to 500 percent can be achieved with a single option, the rule is not. So it is much more promising to trade with smaller amounts and thus to achieve continuous profits. With this strategy, potential losses are not so high.

If there are no trends over a period of time, traders sometimes become impatient and speculate on some underlying asset. However, this only rarely succeeds. The same applies to acting out of boredom. After all, this is about the use of real money, so play, fun and excitement should not be in the foreground. In any case, the MMstrategy is one of the most important stock market strategies , which you can do for your success with a simple formula that aims to minimize the risk.

Always follow your own strategy and comply with rules
The basis for successful trading with Forex is the right strategy. This should be carefully selected and strictly adhered to. If uncertainty exists as to how well an order fits the chosen strategy, it is better to wait. As soon as there is a risk that a rule will be broken, it is advisable to take a break. Then it can then enter the market with a clearer head again.

There are many strategies when trading stocks, which can be taken into account and used. At the same time, however, it is important to ensure that your own budget is not overburdened so that you can continue to act actively. While most experienced traders are already experienced with money management, beginners who tackle a trading platform are often overwhelmed. They do not know exactly how they should proceed and what special features they have to observe. For this reason, not only are technical indicators to be considered, but at the same time, MM is an important factor to analyze in order to keep a budget permanently stable. MM has some basic rules to keep in mind. In addition, analysis methods must be combined with the MM in order to be able to benefit from the best results.

Basic 7 Tips for Dummies in Trading Currency and Cryptocurrency

Since and then, brokers have been offering us access to the foreign exchange by their trading platforms. It could be a specific platform of them or a more common platform like metatrader. They allow retail investors to trade currencies. Later, some online brokers also offer crypto-currency trading as well. Here, you will discover seven tips to successfully trade real and virtual currencies.

  1. TRAIN YOURSELF AND FIND OUT
    Be aware that trading currencies and crypto-currency requires some solid knowledge not only in financial and economic culture, but also many techniques related to trading. That consists of technical analysis and its mathematical indicators, graphical analysis and different figures and in some case the difference between the booking order and market orders.
  2. DO NOT GO AGAINST THE TREND AS IT IS YOUR FRIEND
    This means that in a bullish market you should buy while in a bearish market you need to sell rebounds.
    It is unconscious in terms of currency trading to think that the market is wrong. You need to avoid this.
    For encrypted currencies, if you expect to anticipate a trend before the introduction of an encrypted currency, you can participate in its ICO or Initial Coin Offering that will allow you to invest at a preferential price in cryptocurrency—in which you believe before its launch.
  3. LET THE PROFITS RUN AND CUT THE LOSSES QUICKLY
    If you are advised not to take your winnings too quickly on a winning trade, do not delay too much. It’s the best way to lose everything! Use target profit (TP) orders and for limiting losses, use stop orders. Better, use trailing stop orders to protect your profits or reduce a potential loss.
  4. OBEY STRICT RULES OF MONEY MANAGEMENT
    It is essential to set goals for profit and loss. And to respect them!
    Keep some distance from your trading and especially your earnings. Do not think that you are gifted because the market is always right.
  5. ALWAYS KEEP A FOOT IN THE REAL
    Although testing your strategy with a virtual account is recommended, do not consider that your performance on this account will necessarily be representative of your performance with a real account.
    Do not lose the meaning of the value of your money either. Do not take the game at the expense of your private or professional life. Do not spend 12 hours staring at your screen to follow the courses by chaining orders.
    And be careful, keep a foot in the real world, it is not necessarily obvious if the motto you trade is virtual! But it is possible. Rely on tangible elements and concrete information on which crypto-currency to invest in. Please, stay informed on crypto-currency websites review, developer training and skills, etc.
  6. PREPARE A STRATEGY BEFORE ENTERING THE MARKET AND DO NOT TREAT IMPULSIVELY
    They will prevent you from going astray and giving way to euphoria or panic. This is much more reliable in the crypto-currency market where volatility is such. Thus, that without a well-defined trading plan, you are sure to run for your loss.
    In addition, invest only money that you’re willing to lose and never ever, ever, ever, your savings precaution. Always bare in your mind why I strenghtened this part. Some of my colleagues really got bancrupt because of this bussiness.
  7. STAY SIMPLE IN YOUR STRATEGY
    Whether it is foreign currency (forex) or stock, or even trading encrypted currencies, an effective strategy remains a simple strategy, which you can explain in a few sentences, which is based on concrete, specific and factual and not on beliefs or fanciful anticipations.

Forex Basic : The Trend (2) – The Shorter Trend and Trend Channel

Secondary Trend (known as Medium-term trend)

Prices for long-term trend move from time to time in the direction of the trend. These movements can often be considered as short-term fluctuations. However, these movements are characterized by a significant aspect and lasting from one month to several months are considered as the secondary trend and more commonly as the medium term trend.

In the long-term rising trend in the EUR-USD pair, there have been occasional mid-term downturns. The pair, which fell back to the main trend support after the mid-term downtrend in 2005, continued to rise again from this support . Mid-term downtimes are generally raised when the momentum of the long-term trend exceeds. Excessive prices in prices can be considered as a profit realization for many big players. However, prices resulting from the correction lead to a rise in demand and hence prices.

Short-Term Trend

The trends in one day to three weeks. The weight of short-term investment in forex markets is higher than other markets. However, short-term trends may be misleading due to the fact that they are highly affected by the instant developments. Therefore, it will be more useful for investors to determine the general direction by examining the long and medium term charts.

The short-term uptrend in the EUR / USD parity in 2001 was weakened by the 0.9390 resistance. The short-term trend line, which was tested twice by the slimming result, was broken in the third trial and the short-term rising trend movement ended.

Hourly and even shorter graphics are widely used for technical analysis in forex markets. However, it is a more convenient option to take advantage of the minimum four-hour charts as the downsizing of the charts increases the margin of error. The short-term uptrend in the hourly USD / CAD chart was the result of a third-time testing of the trend support and a subsequent break.

TREND CHANNELS
Trend lines are drawn with reference to rising peaks in rising trends and reference to higher peaks in downtrend trends. However, there is a correlation between support and resistance in trends. For example, while rising trends tend to rise, rising rates tend to rise. A similar relationship is also valid for the fall trends. Falling peaks tend to fall in the downward trend, while their downtrends tend to fall. Parities entering the trend channel provide convenience in short term transactions. Generally, the testing of the channel line is considered as an opportunity to sell, and to test the trend support as an opportunity to buy. However, the fact that this approach is too linear is a risk factor of its own. For example, trend support is expected to work in a rising trend channel. It may not work. In the event that the support starts to rise again, it may mislead investors. For this reason, it is advisable to use the formations and indicators that you can examine in the following pages of Forexturkce.com while reviewing the trend channels.

The long-term rising trend started in the EUR / USD parity, which began in 1998 and ended in 2000, following the breakdown of the lowering trend channel. The remarkable point in this graph is that prices continued to rise after breaking the trend channel, but then, in the medium term decline, the broken trend line line was still in support.

Forex Basic : The Trend (1) – The Long Trends as Main Barometer

The price movements in the markets are caused by supply and demand. However, the formation of these price movements is not coincidental. All these price movements have a distinctive direction. Charles Dow, the founder of modern technical analysis and one of the names of the Dow Jones index, introduced the concept of trend by firmly deciding that there is a significant aspect of market movements. The Dow Theory, which was compiled by Charles Dow, the founder of modern technical analysis, which was published in The Wall Street Journal between 1900-1902, forms the basis of the techniques used today. At first, the aim of the theory is to estimate the trend in the stock market and to invest in a loyal market in a way that is not to paddle against the current. Now. Dow’s theory is applied as well to other derivatives including currency trading.

As stated in the Dow theory, the types of trend are divided into three which is:

  1. Main Trend (known as Long-term trend)

One-year to several-year trends. At first, these trends are not attractive for the forex market, where short-term transactions are at the forefront. However, the main trends in the markets can be considered as the barometer of the economy. In currency graphs, long-term prosperity and crisis periods of countries are directly reflected in long-term trends.

The long-term rising trend under the chart is still evident. The increasing momentum of the graph in recent months can be interpreted as the trend can continue in the coming years. The main trend supports are also very important psychological support. Despite the fact that the main trend support was tested many times in the summer months of 2007 and even under the support of the mass psychology, the trend continued.

Long-term resistance is more important than long-term support in the technical analysis of long-term downtrend trends. Because the resistance to break and strengthening means the end of the trend. The USD / CHF pair, which moved in the downtrend from the spring of 2001 to the spring of 2005, broke the long-term decline trend resistance and entered the rising trend in the short-term. Long-term decline trends are generally shorter than rising trends. The reason for this is that mass psychology causes more hysterical behaviors in the ascents. Individuals are even more enthusiastic about earning more, but because of their fears rather than willingness to lose, their trends are shorter.

The tightness of supply and demand can lead to the direction gap and hence the horizontal trend movements. EUR / CHF maintained its long-term horizontal trend between 2001 and 2003. Horizontal trends can be compared to fault lines. The rigorous supply and demand, such as the fault lines that are broken as a result of the explosion of tight energy, find its direction after a certain point causes hard movements. Therefore, the movements that occur when the support and resistance of the horizontal trend are broken, are quite stiff and are often the precursor of a new trend.

continued

Forex Basic : The Price Chart

GRAPHICS
The principle reason for technical analysis is to assess the graphical movements of price in the previous time and to anticipate the future change whether it is upward or downward. Consequently, charts are utilized to make the information increasingly noticeable and to make measurable investigations simpler.

CHART OVERVIEW
For graphical illustration, certain periods of price fluctuation in the currency market are utilized. These consecutively means the opening price, the highest price, the lowest price and then the closing price of a specific timeframe. Considering that the forex market open 24 hours every day, the opening price (O) is normally the value level seen at 00:00 while the closing price is viewed at 23:00 in and marked as C (Close).

GRAPHIC TYPES
Line Chart: Only closing prices were depicted in the graph. Therefore, it is preferred by many analysts due to its simplicity. However, since linear graphs do not fully reflect market movements during the day, it might be insufficient for the short-term technical analysis. Another missing point of this chart type is the line (linear) logic approach to the chaotic market mechanism.

Graphical instance above : Linear GBP / USD chart. Due to its simplicity, it is possible to see the long-term movements clearly. However, it is difficult to detect fluctuations experienced during the day.

Bar Chart: It is the most broadly utilized and known type of chart in technical analysis. The most significant explanation behind this ubiquity is that it clearly demonstrates the opening, lowest, highest and closing prices in a certain period of time. The opening price is denoted short horisontal line at the left side of the bar. The top point of the vertical bar is the highest level the price in a given periods. The bottom of the bar is the lowest value that the price has come to in a same periods. Lastly, the closing price is expressed by the horisontal notch on the right side og the bar.
The extensive length of the bar indicates high volatility while the shorter length of the bar indicates that the price oscillation was low during the selected period i.e. a tight course was observed. It is possible to say that the bar graphs are more useful in terms of the formations described later in this book, compared to other types of graphs, as they clearly show market movements.

The importance of the bar graph is better understood in terms of the volatility of the GBP / JPY and therefore in the parity where the risk is high.
Candlestick Chart: The first example of modern technical analysis is the Dow Theory.
However, traders who lived in Japan in the 17th century about three hundred years before the introduction of the Dow theory had developed their own technical methods of analysis for the prices in the brass contracts. In these analysis methods, unlike the rest of the world, they took advantage of their own developed candlestick graphs, which were used in many parameters. Candlestick charts show open, highest, lowest, and close as values, such as bar graphs. However, while bar graphs only show this data, candlestick charts try to establish a logical link between these data. This analysis method is mostly used for short term. Therefore, the popularity of this chart among traders is high.

Remarks :
UP TAIL: Represents the highest price.
ANGLE OR CLOSED (Whichever is higher).
DOWN TOWER: Represents the lowest price.
ANGLE OR CLOSED (Which is the lowest value)
FILLED BODY: If the close price is higher than the open price.
EMPTY BODY: If the close price is lower than the open price.

In candlestick charts, the difference between the opening and the closing price determines the length of the body. In combination with hollow or full, short or long body candles, certain formations are formed. The pattern / candle formation as a sign of movement will be explained in the future article.