![]() If the close is higher than the open, the real body is white.ģ. The wider area, known as the “real body,” measures the difference between the opening price and the closing price. The first is the thin line, known as the “shadow,” which shows the price range from high to low. Candlestick charts – This chart presents the same data as a bar chart, but in a slightly different format. Looking at each day’s history, a vertical line shows the day’s trading range with a horizontal line pointing left to mark the opening price and a horizontal line pointing right to mark the closing price.Ģ. It is constructed to show four pieces of information: opening price (optional), closing price, high of the day, and low of the day. Bar charts (HLC / OHLC) – This is the most widely used chart and the default used throughout the site here on. What types of charts are available? For studying the markets by reading stock charts, here are the four main chart types used:ġ. Contrarily, if you like to base your investment decisions on sales growth, total debt, and metrics like EPS (earnings per share), then you are likely interested in fundamental analysis. ![]() By understanding price patterns, traders have an edge at predicting where the stock is going next.ĭo you enjoy reading stock charts and looking at volume trends, support, resistance, and drawing trendlines? Well, then you are very focused on technical analysis, which this guide introduces. Learning how to read stock charts is crucial for stock traders that want to perform technical analysis. ![]()
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