Analyse The Stock Market Prices With Candlestick Charting

By Author: charts view
Total Articles: 6
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In nowadays stock market world, technical analysis of trade financial and commodity aspects are mostly based on the concept of charting. Traders generally decide the exchange of a definite currency pair as it changes over time and they do this through the chart they use. Different analyses are completed with the help of different
types of chart which usually depend on their particular intended purposes.

When we focus on the term chart, we can define it as a graphic explanation of currency price movement in a specific period of time. All charts consist of two important
factors which are ‘x’ and ‘y’ axis. ‘X’ factor of a chart indicate time and ‘y’ factor shows prices. There are mainly four types of chart popular in the market which are:

1)Candlestick chart

2)Line chart

3)Bar chart

4)Point and figure chart

1. Candlestick chart:

Candlestick charting provides high, low, open and close prices in one bar. These charts are designed for easy interpretation purpose. We can analyse data easily with the help of colours ...
... used in the chart body. Its well defined pattern, often with colourful names helps the user to forecast future exchange rate movements. The candlestick charting can contain one or more candles which generally come into the category of bullish and several other categories.

2. Line chart:

This type of chart reflects a sequence of data points which are linked with each other in a line. Most common data for which these charts are used is based on closing prices because these prices are considered essential field of analyses in the market. Line charts are similar to tic charts that used to make the financial study easy. Only difference between both is that line charts allows the traders to plan the action for very long time frames as every tic cannot be plotted so. Generally these charts use to level the price analyses which help the investor to better understand the market trends.

3. Bar chart:

These charts are meant to provide detailed information. It covers all the aspect of price such as low prices, high prices and opening prices. This type is very similar to candle stick chart. This type of chart is more popular than liner chart because it provides more information. The chart contains lines which can draw between the low and high prices to demonstrate the limit of trading range.

4. Point and figure bar:

Point and figure bar charts are popular because these are use to observe the exchange rates moves. These provide the keen and slowly analyses of price action so that trader can remove the distracting elements from the plotted image. These charts contain box or point that is often defined as 30 pips of major currency.
Market analyses charts are not only the combination of zigzag lines but they offer you a brief and accurate history of the prices within a specific period of time. These consist of all the ups and downs of the market prices which help you in essential analyses for the good investment.