Forex encyclopedia

Forex charts serve as framework of technical analysis, and besides allow monitoring behavior of trading contracts by eye. We will now discover the following notions, which are often used for reviewing price charts: • open price – the price of the first transaction within the reviewed time interval; • close price – the last price for the present time interval; • maximum – the largest price for a certain time interval; • minimum – the least price within time interval; The most popular time-frames are: W1 (week), D1 (day), H4 (4 hours), H1 (1 hour), M30 (half of hour), M15 (15 minutes), M5 (5 minutes). The simplest type of Forex chart is the linear – jogged line, which more often is built for close prices.
In measurement formula for Joe Granville indicator, close prices compared with the purpose of adding or deducting of volume, whereas Williams' indicator open and close prices are compared. Marc Chaikin compares close prices with the middle of range from minimum to maximum. The history of indicator is interesting on its own. In Larry Williams formula, Chaikin substituted open price for price of range. The reason of change was not that he considered it wrong, but that he was not able to find data on prices of opening. That time prices were taken from daily papers, which, due to some reason, stopped publishing prices of opening.
New in Encyclopedia
Picture of the day
Types of Forex traders based on risk
Forex encyclopedia
Forex encyclopedia “Clever FX” is the unique service created by FreshForex to introduce world of Forex to traders. The main purpose is to share knowledge of experienced traders with novice traders in simple and convenient form. Every trader will be able to learn something new here. If you are a professional trader, we invite you to write an article for “Clever FX” and get reward. Let's write Forex history together!
Close
Log in
Your browser does not support cookie. If cookie is disabled in your Internet browser, you may have problems with accessing Client Area. How to enable cookie .
manager photo manager photo
Online-support
We will be pleased to answer any questions you may have

Write

Get bonus