Forex encyclopedia

Trading with financial instruments on the Forex, a trader will always use price charts to analyze and predict movement of prices in the market. The simplest price chart is a line graph. It shows rates by one line. But there are other kinds of graphs that are more informative, for example, a Japanese candlesticks chart. It is not difficult to guess that historically Japanese candlesticks chart appeared in Japan in the XIII century. Candlesticks are used to display price quotations rates, commodity prices, stocks and others. "Japanese candlesticks" type of chart is often called configuration of interval and line graphics, because each element displays a range of changes in price for a certain period of time, for example, minutes, hours, days, weeks. Nowadays, they are one of the most popular methods for representing price movement.

Apart from Japan, the countries with the second economic power (Hong Kong, Singapore, Australia, South Korea) are also active in the transaction. * At certain periods, liquidity can be very low and visible for a very small price movement (no change in the relatively long time). A small price movemen allows breakout level of previous trends that occurred in the American market to form, so there is a phase of consolidation.