Types of charts

Tick chart (tick chart).

The essence of this chart is that each new quote value is plotted on the trend, thereby providing a detailed display of price dynamics. A tick chart differs from all other types in that it is not tied to a specific time axis. On it, each movement (vertical) is accompanied by a small, standard horizontal step. This means that even at frantic speeds there will be many price movements drawn within a given time interval, whereas in a sluggish market quotes are updated rarely and fewer ticks are drawn during the same interval. This can be useful for those who want a clear, detailed representation of the actual situation.

Line chart (line chart).

This type of chart is constructed using closing prices, i.e., the last prices at a given point in time. All points are connected by straight-line segments rather than shown as a continuous mass of points.

The resulting chart appears as a broken line. If you zoom in, the chart will look like a smooth curve rather than a jagged line. Such a chart can, of course, only reliably reflect long-term trends, since it includes very little data. However, this type of chart is convenient for an overall analysis of the market because the line clearly emphasizes movement and fluctuations over a period.

Bar chart (bar chart).

As you may have guessed, this method consists of drawing bars on the coordinate plane. A bar reflects the range of price changes over a specific period. In other words, a bar chart shows the opening price, the closing price, as well as the maximum and minimum prices in the Forex market. The construction principle is as follows: vertical strokes draw the range between the maximum and minimum price, while horizontal ticks on the bar indicate the opening and closing prices.

A major advantage of this chart is that all indicators are visible at once. It is clear that analyzing such a chart can be difficult, since prices may have fluctuated significantly within the recorded interval during the period, and this will not be visible on the chart, especially when assessing conditions over a long period of time.

Candlestick chart (Japanese candlesticks).

The chart is similar to a bar chart, but it is more convenient because rectangles (bodies) are used instead of bars, the height of which is determined by the opening and closing prices. The same strokes extend above and below the candles, bounded by the maximum and minimum price values. White candles indicate rising prices, meaning the opening price is lower than the closing price. If the closing price is lower, i.e., prices fell, the candle will be black.

Source - Forex Market Gates