Okay,
to start learning Technical analysis the very first basic step is to know about
different types of charts because charts are the base on which whole technical
study depends.
In a chart
usually horizontal line represents time frame which can be one day, one month,
one year etc. and vertical line represents stock price.
There are
basically three types of charts:
1.
Line Chart
2.
Bar Chart, and
3.
Candle stick chart
LINE CHART
Line chart is
a type of chart
which displays information as a series of data points called 'markers'
connected by straight line segments. It connects a series of data
points with a line. A dot is placed for each closing price and the
various dots are then connected by a line.
Chart credits:
Money control
Above is example
of Line chart. Major advantage of this chart is that it is very simple to
understand and is very useful for beginners. For example above charts shows the
downward trend.
BAR CHART
Bar chart is
the little advanced version it shows Highest price stock reached in the given
time frame, Lowest price reached, closing price and opening price.
bar can be better explained by the following diagram:
Chart credits:
Money control
Above
is the example of Bar chart.
Next
is the most important chart that is candle chart or Japanese candle chart. This
we will be giving in details in our next article.
Guys
if you have any query regarding any article you can comment us.
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