How to use easyMarkets Forex Chart Patterns for market analysis?

The charts provided by easyMarkets are extremely flexible and easy to use. Charts help you understand market trends during the period, as well as identify up-to-date or declining trends, volatility, and price movements.

Various chart types

Log in to easyMarkets, click on the ‘Candle Feet’symbol and select your preferred chart type – Bar (AKA OHLC), Candle Feet, Hollow Candle Feet, Average Feet, Lines, Area and Baseline. You can see the price on the right axis (Y-axis) and the time frame on the bottom axis (X-axis) of the chart.

Bar chart

Bar charts (also known as open-high-low-close or OHLC charts) provide information on volatility not available on line charts. You can predict market trends through the range of volatility, open and close prices through the height of the bar.

In the image on the left, you can see that the closing price is higher than the opening price, and the overall price trend is positive, that is, it is on an upward trend. The image on the right shows that the closing price is lower than the opening price and is on a downward trend. The color of the bar shows the relationship between the closing price of the day and the closing price of the previous day. The green bar indicates that the closing price is higher than the previous day’s closing price. If the closing price is lower than the closing price of the previous day, the color of the bar will be red.

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Candlestick chart

Candlestick charts are one of the most popular charts for keeping track of prices, as they provide a lot of information easily and instantly. A’candle’has a rectangular entity and indicates the range of opening and closing prices. The candles have vertical lines (or cores) above and below to indicate the upper and lower limits. A green candle indicates that the closing price is higher than the previous day’s closing price, and a red candle indicates that the closing price is lower than the previous day’s closing price.

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Hollow candlestick

Hollow candlesticks are one of the most popular chart types. For all candle bars, red or green indicates that the opening price is higher or lower than the closing price, some of which are mid-candle bars. If the closing price is higher than the opening price, it is green and is known as a brush candle, and if the opening price is lower than the closing price, the candle bar is displayed in red and is known as a bearish candle. You can get more information on the mid-foot candle foot by comparing the current price with the previous day’s trade.

Solid Green Candle:

The closing price is higher than the previous day’s closing price, but lower than the current opening price.

Hollow red candles:

The closing price is lower than the previous quarter, but higher than the current opening price.

Solid Red Candle:

The closing price is lower than the previous day’s opening price and the current opening price.

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Average foot

It looks similar to the candlestick chart, but the average bar instead shows the average price movement on a smooth chart. On the contrary, this means that the average bar does not display the exact opening and closing prices.

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Line chart

The line chart is probably the most concise view of the data. The line connecting all the closing prices makes it possible to read the price movement within the period. In addition, price movements can be captured quickly and clearly.

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Time scale

You can select the time scale (period) you want to display at the top of the chart from 1 minute to hours and days.

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Index

Indicators can be selected and duplicated for technical analysis at the top of the chart. If you select ‘Indicator’, you can choose from a wide range of trend indicators displayed in your own dialog box. These include moving averages and Bollinger bands for naming oscillators like RSI and MACD.

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Symbol comparison

With this tool, you can see how to compare and analyze correlation or divergence by combining charts of two markets into one chart. In the image you can see the EUR / USD candlestick chart and the XAU / USD (gold) line chart below it.

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Customization tool

On the left side of the chart are various tools for customizing the view. Drawing and marking the chart makes it easier to understand trends.

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Pointer tool

This tool helps you read more accurately by magnifying the details of the chart with crosshairs, dots and arrows.

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Trend line

The trend line is useful for grasping the trend transition by drawing a line between the two bottom prices and the ceiling price. This makes this tool one of the most popular tools used for charts.

The basic trend line is a line segment, that is, the trend line that expands to the right. A standard trend line gives an approximate line segment, and a ray draws a trend line that extends to the right. The extended trend line extends in both directions. Parallel channels allow you to quickly draw parallel trend lines. The other line is drawn automatically, so the user only has to draw one line.

Trendline Subsection is a different tool that provides different versions of the basic trendline. A simple trend line gives an approximate line segment, an arrow indicates a trend line with an arrow, and a ray draws a trend line extended to the right. ‘Extension’ gives a trend line that is automatically extended from both sides.

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Drawing tool

You can further layout and mark your analysis with freehand and predefined shapes.

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Text tool

Annotate the chart with text and pin it to a specific area. You can better identify or classify future trends by using different text shapes to analyze price movements.

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Chart pattern

Overlay display can be used when you want to identify the latest patterns and trends. This includes Elliott Waves, Cyclic Lines, XABCD Patterns and more, and you can choose from up to 14 different patterns.

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Measuring tool

By using this tool, you can measure the change of price, time frame and bar surrounded by the drawn part.

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Magnet mode

This is a great chart feature. The wick magnet mode derives an approximation of the OHLC value without the burden of drawing a graph.

In addition to the analytical tools featured in this article, the latest chart updates allow you to:

• Stay in drawing mode
• Lock all drawing tools
• Hide all drawing tools
• Show Object Tree – The Object Tree shows all the graphs drawn on the chart in the form of line drawings or overlays.
• Delete / Erase feature – This tool allows you to delete drawing tools, metrics, or both.

These tools are easy for users to use and are sufficient for simple market analysis and educational / commentary purposes.

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