In stock trading, the charts play a significant role to analyze the data relevant to stocks or commodities. The technical charts are of four main kinds. Line chart, Bar Chart, Candlestick chart and point and figure charts are the four types of charts. In this article, I have discussed the three mainly used charts.
Line chart is the basic type of chart, which shows the representation of the closing price of the stocks or commodities over period of time. The chart is formed by connecting all the closing prices of the stocks over certain period. Line chart is said to be basic chart, as it does not show the all the prices like high, low and opening prices of the securities. Nevertheless, the closing price of the stocks is considered the most important information to predict the future price of the stocks as compared to the high and low prices.
Bar chart is more detailed chart than the line chart as it has more information of the price of the stocks. The chart is made up of vertical lines, which represents the data points of the stocks. The data points include the high price of the stock, low prices of the stocks and the closing price of the stocks over certain time. The dash of the left side of the vertical bar shows the opening price of the stock. The dash on the right side of the vertical bar shows the closing price of the stocks. <b><a href=" http://www.moneyclassicresearch.com/Ncdex-tips.php
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Candlestick chart is similar to bar charts, only there is slight difference in the representation. In technical analysis, the moment in price is revealed graphically in the candlestick chart, which helps the analysts to understand the nature of the market. The technical analysts might get confused in between candlestick chart and bar chart. The difference in between bar chart and the candlestick chart can be observed in the way they are represented in the graph. The chart represents the vertical lines which shows the data points. The wide bar in the vertical lines represents the opening and closing price of the stocks in the chart.
The candlestick charts heavily rely on the colors used in the charts. Different colors have different significance. However, a major problem is observed related to the color configuration of the candlestick charts, as colors of the chart are not standardized. That is different chart site use different colors to represent the graph, which lead to misunderstanding. Therefore, it is good to understand the chart color configuration before it is used. Generally, two colors are used in the chart. One color is used to represent the price hike and the other color shows the downfall of the price. It is sure, when the price of the stock is up and above the opening trade then it is shown by the clear/transparent or white color. However, when the price of the stock is down for the period then it is represented by the red color or the black color. The filled part of the candlestick is called the body. The body is filled with black or red color if the stock closed lower. The body is filled with white or green color if the stock closed higher. The top vertical line, which is usually thought as wick by the analysts, shows the highest price for the day. The lowest vertical line of the body shows the lowest price for the day. accurate Ncdex tips, NCDEX Tips, Best NCDEX Tips, Agri Commodity Tips,
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