To plot there is a rectangular system of two axes. Horizontal spine is "responsible" for the time and the vertical shows the possible value of the price of a particular currency. On the time axis is used exclusively arithmetic scale. Price axis can be not only arithmetic, but with a logarithmic scale.
Timeframe - a popular term in the world of traders. Means a unit interval of time, the choice of which depends on the compression (compression) of data. The smallest timeframe can be seen in the so-called tick chart that displays literally every price fluctuation. However, in most cases, for ease of use of the compressed data for a certain period of time.
For any time period is characterized by four key value of the exchange:
• the first price or the opening price of the period;
• the maximum price for the period;
• The minimum price for the period;
• the last price, the closing period.
In my practice, traders commonly use linear, bar charts, candlesticks, and some other types of tools. In addition to the tenets of technical analysis , graphical analysis has set its own rules, not knowing who to resort to trade patterns with extremely dangerous.
6 rules of graphical analysis
1. Technical analysis is not used during the news have a fundamental impact on the currency market.
2. Trend line break is:
• the daily scale closing of the day outside the delineated line;
• the hourly timeframe closing hours or shaped candle.
3. Pierced the trend line is usually at the cost of testing the other side.
4. Predicted stroke after the breakdown is approximately the size of the pattern, the deviation can not be more than 10% in both directions.
5. To bargain with some figures without Fibonacci extremely risky.
6. If the height of the trend of the order of 400-800 points close to the line at a distance of about 10% of the experts do not recommend that you enter the market.
The above rule is best to keep him on the table every time you try to look at the screen the appearance of the next pattern. After the formation of a familiar figure is far from a guarantee of success - must use a comprehensive, proven approach for years.