What is support & resistance

What is stock market trend?

Types of charts

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

 

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 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.