Here’s how you can read a forex line chart. What are Forex Charts? For traders who enjoy making use of technical analysis to determine their trading strategies, forex charts are important.

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A line chart also helps you see short-term trends that can affect any asset. For example, you may see a steep decline related to a selloff, and you will see the stock’s recovery shortly thereafter.

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Figure 2. Alternative to Figure 1. Click to enlarge. The takeaway is to think about your data and whether the chart you are using makes sense for your data. Don’t blindly follow rules.

Bar charts can give more detail into a stock's price range than line charts. Each trading day is represented as a bar on the chart with the open, high, low and closing prices.