Trader use charts to determine market direction and identify possible buying and selling opportunities. There are three types of charts commonly used in trading,
- Line chart;
- Bar chart;
- Candlestick chart.
Line Chart:
These charts are handy for quickly determining the trend – only the current/close price is graphed – as such these charts should not be used for placing stop loss or take profit orders.
Bar Chart:
The chart is created with the use of bars where each bar has a high (top) and a low (bottom) with a line on either side; right side being the opening price and the left side being the closing price for the selected time period.
Candlestick Chart:
This chart is created much like bar charts, with the only difference being that candlesticks add dimension and colour to the Bar Chart by depicting the area of the bar between the open and close as a two dimensional real body.
More News Posts
US futures edge higher as focus shifts to job market
US equity futures opened modestly higher with the S&P 500…
Dollar edges to two-week high vs euro as US payroll data looms
The dollar climbed to a two-week top against the euro…
US futures tick lower as Nvidia earnings loom
U.S. stock index futures fell in evening deals on Tuesday,…
Asian stocks edge lower, China hit by Canada EV tariffs
Most Asian stocks fell on Tuesday, with sentiment towards Chinese…
Dollar sinks vs yen, hovers near 2-1/2-year low to sterling after Fed’s dovish shift
The yen rose to a three-week high against the dollar…
US stock futures steady as rate cut cheer grows
U.S. stock index futures rose slightly in evening deals on…
Australia’s central bank faces crunch time in resistance to rate cuts
Australia’s central bank is set to come under intense pressure…
China keeps loan prime rate unchanged after surprise cut in July
The People’s Bank of China kept its benchmark loan prime…
Dollar in holding pattern ahead of FOMC minutes, Powell comments
The U.S. dollar was struggling to make headway against its…
Japan July inflation likely picked up, boosting case for more BOJ rate hikes: Reuters poll
Japan’s consumer inflation rate likely picked up in July for…