Types of Stock Charts
How to Read and Understand Different Types of Stocks Charts
There are different types of stock charts used in stock technical analysis and the three most common stock charts are line charts, bar charts & candle charts.
Stock Line charts & Stock Bar Charts are not as popular as Stock Candles Charts
Stock Candlesticks Charts are popularly used in the stock market because the stock candlestick shows the direction of stock price movement based on the color of the candlestick. The distance between the opening price & closing price is called the body of the candlestick, the top and bottom lines are known as shadows and these represent the high and low of the stock price.
The body of a stock candlestick is based on the opening stock price & closing stock price of a particular stock chart time-frame period.
If the Opening stock price is lower than the closing stock price the color of the candlestick body will be blue or green meaning stock prices went up. A bullish stock candle - stock trading price moved up - blue or green color stock trading candlestick.
If the Opening stock price is higher than the closing stock price the color of the candlestick body will be red meaning stock prices went down. A bearish stock candle - stock trading price moved down - red color stock candle.
The thin lines that protrude above & below the stock candle body are called wicks or shadows.
Stock Bar Charts
Stock bar charts are used to display information that is similar to stock candlesticks only that this charting method uses bars to plot stock price movement instead of candlesticks. The bar has a line on the left and right side - the left side is the opening price & the right side is the closing price. Different colors are used for different bars to display the direction of the stock price movement - green bars for when stock price moves upwards & red bars for when stock price moves down.
Stock Line Charts
Stock line charts are used to draw the closing price as continuous line on the stock trading chart.
Line stock charts are the simplest stock charts that don't give much details on the stock chart because just a line is drawn to connect one stock closing price to the next stock closing price and this line chart will show a series of the stock closing prices.
Stock traders use stock charts to determine the direction of the market and to identify buy and sell stocks trading setups & signals.
The three commonly used stocks charts - Line Charts, Bar Charts and Candlesticks Charts are provided for on the stocks trading platform - MetaTrader 4 and MT5 stocks platform & stock traders can choose the type of stock charts that they want to trade with.
How to Read and Understand Different Types of Stock Charts
Different types of stock charts can be used by stock traders to analyze, interpret and understand the supply and demand of a stock instrument.
The stock charts studies can help stock traders identify various stock trading setups that have different interpretations for supply & demand.
Stock traders can use these stock setups to identify stock trading signals of where to buy & sell and where to close open stock trades.
To read a stocks chart a trader will need to learn about the three different stocks chart types.
Stock traders will also need to know about the various stock chart timeframes for these stocks charts - 1 minute stock chart timeframe, 5 minutes stock chart timeframe, 15 minutes stock chart timeframe, 30 minutes stock chart timeframe, 1 hour stock chart timeframe, 4 hours stock chart timeframe, 1 day stock chart timeframe, 1 Week and 1 month stock chart time frame.
Types of Different Stock Charts
