Types
of charts
Different types of charts are used to analyze the financial instruments. Of them, line
charts, bar charts & Japanese candlestick charts are more common.
Line Charts:
In these type of charts, a line is drawn
connecting the close prices. These
type of charts show direction of
the trend of the security. The line charts are also call
e a
close-only charts as
they plot the closing price of the underlying security
Nifty
50 line chart
Bar
Chart: This type of
chart displays a bar containing open, high, low & close for that
particular time period
.
Wipro
Bar Chart
Bar
chart are also called OHLC charts as they give all the information
about the open high
low & close for that particular bar.
Candlestick
Charts: These
charts also display OHLC prices but in a different way. Candle
like
figures are used to plot the chart. Usually hollow candle shows
positive day & filled
candle shows negative day while lines above
& below the main body are called upper
shadow & lower shadow
& show high & low respectively.
Relaince
Candlestick Chart
Candlestick
analysis itself is a separate tool for technical analysis. That will
be discussed
separately.
