Best Trading Charts

Best Trading Charts Used Widely

1. Daily Bar Chart:

This is a chart that is widely used. It is shaped to display four different pieces of data; the opening price of stocks, the closing price of stocks, the high price of the day, and the low price of the day. A vertical line confines the range of the day with a horizontal line on the left to indicate the day’s opening price and a horizontal line on the right indicating the closing price.

2. Candlestick Chart:

This chart has two essential parts. The first line is known as the ‘shadow,’ revealing the price range from high to low and the second part is a vast area on the chart known as the ‘real body.’ This confines the difference between the opening and closing price, and if the closing price is higher than the opening price, the real body is revealed in white. The candlestick chart provides the price action situation for assessment for the trader to gain quick information between the high-low and open-close conditions. When the closing is higher than the opening, indicating sell pressure, it is a hollow candlestick. When the closing is lower than the opening, meaning sell pressure, it is a filled candlestick.

3. Point And Figure:

This chart is concerned only with the price and does not specify volume or time. It uses ‘X’ to show a rise in price and an ‘O’ to show a dip in price. This type of chart helps determine reversals and trends. While time is not used here, it offers little indication of the duration of the stock trading will take to generate profits.

4. Head And Shoulders:

This type of chart is more reliable and used by traders for online share trading. It signifies a reversal chart pattern, and when it is formed, it indicates that the share in the stock market is most likely to move against the last trend.