Stock Trading Charts
A stock chart represents the price of a stock over time. The stock price is on the Y (vertical) axis and time is on the X (horizontal) axis.
Different types of chart that are being used in stock market
Line chart:-
This is the simplest of all the chart used in stock market. Each point or date on the chart represents that day`s closing price (price at the end of the trading day) of the stock. Line charts do not provide visual information of the trading range for the individual points such as the high, low and opening prices.
Bar Charts:-
The bar chart shows a vertical bar for each period on the time scale. The chart is made up of a series of vertical lines that represent the high and low for the trading period, along with the closing price. The close and open are represented on the vertical line by a horizontal dash. The opening price on a bar chart is showed by the dash on the left side of the vertical bar & the closing is showed by the dash on the right side. If the left dash (open) is lower than the right dash (close) then the bar will be shaded black, means it has gained value. A bar that is coloured red shows that the stock has gone down in value in such case, the dash on the right (close) is lower than the dash on the left (open).
Each line shows you the following information:
Opening price (price of the stock at the start of a trading day)
Closing price (Price of the stock at the end of a trading day)
Low (lowest point during the day)
High (high point over the course of the day)
Candlestick Charts:-
The candlestick techniques we use today originated in the style of technical charting used by the Japanese. Candlestick shows the open, high, low and closing stock prices. When the price of the stock is up and closes above the opening trade, the candlestick will usually be white or clear. If the stock has traded down for the period, then the candlestick will usually be red or black, depending on the site. If the stock's price has closed above the previous day's close but below the day's open, the candlestick will be black or filled with the colour that is used to indicate an up day. A major problem with the candlestick colour configuration, different sites use different standards; therefore, it is important to understand the candlestick configuration used at the chart site you are working with.
The following is a description of what up days look like on a candlestick chart:
Next is a description of what down days look like on a candlestick chart:
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