The benefits of using stock charting software

The benefits of using stock charting software how to#

The bar chart looks a lot like the candlestick chart.

However, we have illustrated three types of stock charts below. We will discuss these technical charts extensively later. However, the four types that are most common are-line chart, bar chart, point and figure chart and candlestick chart. There are many types of charts that are used for technical analysis. The vertical axis displays the stock price or the trading volume corresponding to each period. The horizontal axis represents the historical time periods for which a technical chart has been constructed. Stock charts, like all other charts, have two axis-the vertical axis and the horizontal axis. It is your job, as a technical analyst, to identify the type that will bring out a hidden trend most effectively. This relationship can be presented in a number of ways, through the use of different types of charts. Put in the simplest possible terms, it is a graphical representation of how a stockвЂ™s price or trading volumes have changed over time. But before we get to that, letвЂ™s try to answer the question, what is a stock chart?

The benefits of using stock charting software how to#

What are stock chartsДЄs we discussed earlier, trying to perform technical analysis without using stock charts is like trying to build a house without owning land! So we must try to understand how to read the charts. We will also understand what trend lines are and how they can be combined with stock charts to make useful deductions about stock prices movements. In this section, we will understand what is a chart and also briefly discuss stock charts. It is, therefore, critical to understand what is a chart and how to perform stock chart analysis to excel at technical analysis. This is because trends are discovered in the charts themselves. However, trend analysis cannot be done unless historical stock charts are available. All this action, though, happens in a place called вЂstock chartвЂ™.ДЄnalysis of market trends is the first tool that is used in technical analysis. It even plots market trends using stock prices. Technical analysis is all about getting the price right. For this you need to know what is a chart. A good stock can be loss-making if you buy it at the wrong price. Money, money, money! It is all about prices, even in the stock market. Chapter 8.6: Understanding Technical Stock Charts & their Types