Types of Charts
The Types of Charts in Binary Options
In the financial market the change in the value of assets (trading tools - currency pairs, stocks, stock indices, commodities) is displayed in the form of graphs that allow us to see the process of price movement of the financial instrument for a specified period of time. The graph is a visual construction of market sentiment, the predominance of demand and supply, as well as the tool to identify trends in the future direction of the assets’ movement.
First of all, let’s note that the graph with quotations of the financial assets is the window with 2 scales of coordinates: price and time.
Thus, the display of the price change is done with the help of visual building of this process on the coordinates’ scale.
Each trading terminal contains a window that displays the specified graphics with quotes. At the same time, there are several popular varieties of options for charting:
- Line graphs;
- Graphs in the form of Japanese candles;
- Graphics in the form of bars.
In this case, the listed graphics have a certain number of time slots (timeframes) - time units of the process of constructing such graphs.
- M1 – chart with a minute segment of price changes;
- M5 – chart with five-minute intervals of price changes;
- M15 – chart with fifteen-minute segments of price changes;
- M30 – chart with thirty-minute segments of price changes;
- H1 - chart with an hour interval of price changes;
- H4 – chart with four-hour intervals of price changes;
- D - chart with a day interval of price changes;
- W – chart with a week interval of price changes;
- MN – chart with a month interval of price changes.
This distinction in the time of construction is called a timeframe.