In this article, I am going to discuss about the important tool of figure charts used in forex. Basically there are four types of figure charts which are based on the statistics to see the figures of anything. The four main types which are must for a trader to know are:

Line Chart
Bar Chart
Candle Stick Charts
Point and Figure Charts

Line charts are quiet simple and consisting of lines. Bar charts and Candlestick Charts are highly used in trading. These both types are pretty similar to each other too. Bar charts and Candlestick charts show high and low prices in a similar manner. They are also used to retrieve opening and closing prices of the market products. Candlestick charts are comparatively newer than bar charts and they came into use from some previous decades. They become highly trendy when people started learning candlestick figures in trading.

Point and Figure charts are quiet different from all the types which I have mention just above. Point and figure charts do not contain time factor but they only show the price action. These charts have simple and well defined rules. They eliminate the cutter or round of the prices because of the minimum value of boxes in the chart. These are consisted of boxes which are O’s and X’s. Each O used for the increment in price, while each decrement can be shown using X box. The technical aspects for using these charts in market are comparatively easier and worthy. So that is the reason they are used more in the market today.

Now my advice to you is not to go with the trendy chart for analyzing and trading but use your common sense to invest money using any chart suitable to your skill and trade to get fruits.