Learn How To Trade Forex • Best Forex Course • AsiaForexMentor

Put an end to your quest of hunting for forex courses or coaches, there will be a new one popping out every other week. If you are looking for the “Guru’s guru” “The Best in the Industry” “One of the World’s Best Forex Trader” – as testified by my students.

AFM Proprietary One Core Program
  • Who is Asia Forex Mentor
  • Blog
  • Stock Market Education
  • AFM Proprietary Program
  • Reviews
  • Who is Asia Forex Mentor
  • Blog
  • Stock Market Education
  • AFM Proprietary Program
  • Reviews
Types of charts
No Comments

Chart Types

As stated in the previous lesson, Introduction to Stock Charts, there are three main types of charts that are used by investors and traders.
The chart types are:

  • line chart
  • bar chart
  • candlestick chart

Line Chart
A line chart is the most basic chart type. It is used mostly by investors to get basic stock price information. The line chart represents only the closing prices over a set period of time and is formed by a connected straight line from one closing price to another over the time frame.
stock-line-chart
Line charts do not provide visual information of the trading range for the individual points such as the high, low and opening prices. However, the closing price is often considered to be the most important price in stock data compared to the high and low for the day and this is why it is the only value used in line charts.
Bar Chart
A bar chart illustrates a visual representation of the price activity of a stock over a given period of time. This style of chart is used by some traders.
A bar chart, also called a OHLC chart, includes four price points for a given time period: an open, a high, a low and a close. Below is an example:
stock-bar-chart
The opening price is shown on the left side of the bar. The top of the vertical line indicates the highest price the stock traded during the set time frame, and the bottom represents the lowest price. And finally, the closing price is displayed on the right side of the bar.
ohlc-chart-bar-chart
The bar chart expands on the line chart by adding several more key pieces of information to each data point. It gives you the ability to see whether a stock has increased or declined in value between the opening and closing in a set time frame. If the tic on the left is located lower than the tic on the right, you can imply that the stock has risen higher between the open and close of trading. This works for the opposite as well.
Candlestick Charts
Candlestick charts have become very popular among traders in the last decade or so and have become the most commonly used chart that traders use nowadays.
A candlestick chart is similar to a bar chart, but is different in the way it is constructed. A candlestick features four data points: an open, a high, a low, and close.
Called a candlestick because it simply looks like a candlestick where it is usually composed of a body, and an upper and a lower shadow often called the wick.
The wick illustrates the highest and lowest traded prices of a stock during a particular time frame. The body illustrates the opening and closing trades.
candlestick-chart-stocks
Another feature of candlesticks is that it uses color to explain what has happened during the trading period. There are two types of color used; one color is used for an up candle and another for when the price falls.
candlestick-chart
Compared to traditional bar charts, many traders consider candlestick charts a better pictorial representation of the price action and easier to interpret. A trader is able to immediately compare the relationship between the open and close as well as the high and low.

« Previous
Next »
ezekiel chew asiaforexmentor
About Ezekiel Chew

Ezekiel Chew the founder and head of training at Asia Forex Mentor isn’t your typical forex trainer. He is a recognized expert in the forex industry where he is frequently invited to speak at major forex events and trading panels. His insights into the live market are highly sought after by retail traders.

Ezekiel is considered as one of the top forex traders around who actually care about giving back to the community. He makes six figures a trade in his own trading and behind the scenes, Ezekiel trains the traders who work in banks, fund management companies and prop trading firms.

GET THE PROPRIETARY ONE CORE PROGRAM (The same system I use to make 6 figures a trade with)

Related articles

No related photos.

5 PART SYSTEM TO MAKE REALLY BIG MONEY IN TRADING

FREE TRAINING

We have generated over millions of dollars via trading with the 5 part system outlined in this free training. Download it now before this page comes down or when I decide to stop mentoring.







About Ezekiel Chew
About Ezekiel Chew

Ezekiel Chew the founder and head of training at Asia Forex Mentor isn’t your typical forex trainer. He is a recognized expert in the forex industry where he is frequently invited to speak at major forex events and trading panels. His insights into the live market are highly sought after by retail traders.

Ezekiel is considered as one of the top forex traders around who actually care about giving back to the community. He makes six figures a trade in his own trading and behind the scenes, Ezekiel trains the traders who work in banks, fund management companies and prop trading firms.

GET THE PROPRIETARY ONE CORE PROGRAM
(The same system I use to make 6 figures a trade with)

Categories
  • Trading Know Hows
  • Forex Trading Strategies
  • Price Action Trading
  • Forex Trading Indicators
  • Forex for Beginners

SERVICES

  • AFM Proprietary Trading Course
  • Golden Eye Group
  • Trade Rescue
  • Corporate Training
  • Speak At Your Event

COMPANY

  • Who is Asia Forex Mentor
  • Asia Forex Mentor Reviews
  • Contact Us

RESOURCES

  • Stock Market Education
  • Blog
  • Position Size Calculator

6 Raffles Boulevard, #03-308, Singapore 039594
Whatsapp Text: +65 8786 8319

©2020 ASIA FOREX MENTOR. All Rights Reserved | Disclaimer – Terms of Use | Privacy Policy | Cookie Policy | Privacy Policy – Europe GDPR

Get Ezekiel Chew’s 5 Day Email Course on “How to be in the Top 10% league of Forex Traders”

100% Free – Delivered to your inbox

Subscribe to the most popular Forex Trading  blog online, join thousands of readers






Scroll to top