As we all know that there are different types of charts in technical analysis. We will discuss the most popular chart types
Chart Types –
We will discuss Important chart types in details,
- Line Chart
- Bar Chart
- Candlestick Chart
- Line Chart – This is the most common type of chart. This chart tracks only the closing price over a specific period. A single dot represents the closing price and such dots are connected by a line to get a graphical representation.
Above chart is example of line chart.
2. Bar Chart – A bar chart offers more information than a line chart. It shows open, close, high, and low prices over a specific period. This chart has a vertical line and this line has two horizontal lines.
Above the pattern is a single bar indicating open, close, high, and low. The green bar represents the rising price and the red bar represents the falling price. The left side horizontal line indicates the opening price and the right-side horizontal indicates the closing price.
Above chart is bar chart.
3. Candlestick Chart – This chart is very much popular in technical analysis. This chart shows detailed information for a specific period in candlestick shape.
The above pattern is a basic example of a single candlestick. The Candlestick chart has two parts body and wick. The body is nothing but the part between opening and closing price and the wick is a horizontal line which is above and below the body which shows the high and low price.
The green candlestick shows the rising price and the Red candlestick shows the falling price.
The above chart shows a candlestick chart over a specific period.