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
Dollar buoyant, equities cautious ahead of China data
The dollar hovered close to an 11-week high versus major…
US stock futures edge lower with TSMC earnings on tap
U.S. stock index futures fell slightly in evening deals on…
US stock futures steady after tech losses batter Wall St; earnings in focus
U.S. stock index futures steadied in evening deals on Tuesday…
Gold prices muted; copper weakens as China stimulus underwhelms
Gold prices steadied in Asian trade on Monday as traders…
Global Forex and Fixed Income Roundup: Market Talk
The latest Market Talks covering FX and Fixed Income. Published…
Asia stocks edge higher with CPI in focus; China falls past fiscal stimulus talk
Most Asian stocks drifted higher on Thursday with focus on…
Japan leads Asia stock rally, dollar gains after blowout US payrolls
Asian stocks rallied and the dollar reached a fresh seven-week…
Dollar poised for largest weekly gain since April, jobs report in focus
The dollar hung around a six-week high on Friday, set…
Asian stocks rise as China cheer persists; Tech tracks US rally
Most Asian stocks rose on Thursday amid persistent cheer over…
Asian stocks rise, China rallies further on stimulus cheer
Most Asian stocks rose on Wednesday, with Chinese markets seeing…