What Different Stock Charts Can Say About Your Stock




We see all kinds of charts all the time to help us quickly understand in the picture what needs more numbers to describe. From sports to election campaigns to cooking, there are pie charts, bar charts, and line charts everywhere we look. For the same reason, that an image has a value of a thousand words, there are different types of stock chart designs to help tell the story of what happens at the stock price. If you look closely at the stock chart, we can all see patterns up and down and have an idea of ​​whether the stock is doing well or not. But there is a lot you can do about stock in the way a graph is drawn if you know what each type of chart is trying to mean. We all know stock chart graphs the price of a stock, but how does the chart do that and what price is actually recorded on the chart? Yes, there are a few stock prices that could be on the chart in one day! And since the financial crisis, it is common now to have days when the DOW goes up or down by a hundred points, so the stock price shown on the chart is really important!


If you look at multiple charts, the stock price graph is in line with the vertical axis (Y) and the time goes by with the horizontal axis (X) on the right. Each dot, marker, or bar is added to the right of the previous symbol and represents a new time. Pretty standard right? Like reading opposition team games, when you read the stock chart you want to look at what the price did and then think about where the stock price might go. By doing so you will learn the stock price behavior in the past and what it is doing now. This hypothetical view of stock price data and statistics is often referred to as technical analysis. Activity analysts have come up with some of the most creative and detailed methods of graph graphing and data analysis, but here are some of the most common types of stock charts:


1.Line Charts

 Line charts only show the final price, i.e. "closing price," for each period and the line connects the dots for those final prices. Most investors are accustomed to seeing daily charts, which means that each dot represents a day. Similarly the "monthly" charts have each dot representing the moon, and the "hour" charts have each dot representing the hour. Line charts do not indicate the current, high, or low opening price but only focus on how the price has moved from one period near the next closing. By focusing on the closing price, the line charts say the end price is a very important piece of data because it is actually the last bet the investor puts up until the next time. If the chart is a daily chart, this means that for any bet placed at the end, investors accept any risks that may occur overnight or on the weekend. From natural disasters to wars, we have recently seen how the world can change in an instant.


2.Bar charts

 These bar charts do not look like your regular Excel bar or histogram charts, so listen carefully! Bar charts are an easy way to enter stock opening, high, low, and closing time. A straight line is drawn from top to bottom, the hash marker exits the morning on the left side to indicate the open, and the hash mark on the right at the closing price. By showing the top and bottom bar charts they can show you the stock range for each season. Opening and closing is important because stock can have a wide range of time, but keep it in the same place. So, in the meantime, let’s say we use a weekly chart to make time for a week, maybe the stock was very low, but the company had a good announcement that caused the stock to rise sharply during the week. But at the end of the week before the closure, investors decided that the news had been canceled and the stock had returned to where it had started the week.


3.Candlestick Charts (also known as Japanese Candlestick Charts)

 Like Bar charts, Candlestick charts show open, high, low, and closing values. Instead of just a straight line, the price between the opening price and the closing price is drawn as a dry rectangle as histograms may look like. This is the body of the candlestick. Apart from the opening and closing prices going up and down there are just straight lines. Attached to the body of the candle, these straight lines look like strings on a candle. When the candle closes above the opening value, it means that the stock has risen during this time and the body of the candle is an empty box. If the candle closes below the opening price, the body of the candle is filled to indicate the lower closed stock at this time. By taking up more rectangular space and emphasizing open space compared to closures, many traders hear candlestick charts that make it easier to visualize and see patterns.


When you think about it, you can also use line charts, bar charts, and candlestick charts to make a graph for other things like football games. So the next time you use any stock chart website (Yahoo! Finance, FreeStockCharts.com, FINVIZ, or your broker), try these different types of charts and see more about what happens to your stocks.


 An individual futures trader, options, and trader. His knowledge of the stock market helped him launch MarketHEIST.com, an investor service magazine that combines investment services and stock trading tools so that buyers know what can work for their individual circumstances. Through MarketHEIST, Jeffrey also produces a series of videos in various stock markets.

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