Types of trading charts
Types of trading charts
Line chart
This type of graph is the simplest type, which in finance and trading is used. As you can see in the picture, it is a single past data that is associated line. Mostly used closing date, a price that occurred at the end of the selected time period.
This type of graph is the simplest type, which in finance and trading is used. As you can see in the picture, it is a single past data that is associated line. Mostly used closing date, a price that occurred at the end of the selected time period.
Bar chart
Description of step (bar) and interpretation of sample values.Bar chart, is one of the OHLC (open, high, low, close) graphs. The chart can be read not only the closing price, but also the opening, the lowest and highest. The course of prices is more detailed and therefore better observe trends and price formation . Single step (bar) consists of 3 parts. The vertical line shows where prices were, therefore, the peak (high) and bottom (low). On this line from the left connects shorter, horizontal portion, which indicates the opening price. To the right of the vertical line is formed by the same closing price as you can see on picture.
Description of step (bar) and interpretation of sample values.Bar chart, is one of the OHLC (open, high, low, close) graphs. The chart can be read not only the closing price, but also the opening, the lowest and highest. The course of prices is more detailed and therefore better observe trends and price formation . Single step (bar) consists of 3 parts. The vertical line shows where prices were, therefore, the peak (high) and bottom (low). On this line from the left connects shorter, horizontal portion, which indicates the opening price. To the right of the vertical line is formed by the same closing price as you can see on picture.
Candlestick graph
Description and display of candles interpretation of values. Candle stick graph has a long history. It was created in Japan already in 1700 and ranks as one of the first ways of making graphs. For its creator is considered Munehisa Homma, a trader with rice, which, using this chart, earning huge amounts. This graph was given its current name until later. Japanese traders said his first “line of counterattack” or “tree army advanced.” Unlike bar chart is not only the common type of graph OHLC (open, high, low, close). Candlestick graph has also had some predictive value. Two or more consecutive candles can create a formation (pattern) from which you can predict likely future behavior. Candle is divided into two parts, the body and wicks or. shadows. The body fat of candles, expressing the range between the opening price (open) and closing price (close). Wick (shadow) is a narrow portion protruding from the body up or down. The upper shadow represents the maximum price (high) for a given time period, the lower shadow of the minimum price (low).
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