How to read chart - In the world of trading, in general, when people talk
about technical analysis, it first appeared in the mind is a chart (graph). The
technician generally are using the chart, because it is the easiest way to
visualize the price data from time to time. You can to use the help of a chart
to determine the trend of finding patterns that have the potential to take you
to achieve incredible opportunities.
Here are three types of charts (charts) in technical
analysis, which will be discussed on the occasion of this day.
1.
Line Chart
Line chart is fairly simple graphs depicted as a line
connecting the closing prices. Example: in a few days in a row trading closed
at 100, 200, 150, 250 and others. Then the price levels that are connected by
straight lines. With the graph we can see the general price movement within a
Certain time period
Examples of graphic image line chart you can see below.
2.
Bar Chart
Bar chart is quite more complicated than in the line
chart. Chart of this type to provide information about the price of opening,
closing, highest price and lowest price within a certain time period. Because it
has that information, this chart is called the OHLC chart
(Open-High-Low-Close).
The following is the basic form of a bar chart that you
can see.
 |
| Bar Chart |
The lower end of the bar chart above picture is the
lowest price ever traded in perioder that time. Small horizontal lines located
on the left it is the opening price, and while on the right is the closing
price. In the picture above the opening price is lower in comparison with the
closing price. But the opening price may be higher than the closing price.
Examples of graphics bar chart you can see below.
In simple terms it can be said that the bar is a specific
time period. Either one month, one week, one day, one hour, even one minute. Of
course, depends on the time frame for some time we pot chart.
3.
Candlestick chart
Why in the call candlestick? Because it is shaped like a
candle. Full name "Japanese candlestick chart" because the first
comes from country Sakura. Chart for this type can provide exactly the same
information with a bar chart, just a slimmer body shape.
 |
| Candlestick chart |
General body of the candlestick chart is black and white.
If the body is white, the open price is below, and vice versa, if the body is
black it is above the open price. The conclusion so the body itself describes
the distance between the opening price at the closing price in a specified
period of time.
If the open price is below the closing price, then it can
be called by the bull candle. In
technical analysis, the term of "bull" or "bullish" is used
to describe the movement of the price rise. And to describe the price movements
are down, used the term "bear" or "bearish" so that
candlestick that has a price above the price the close of the call bear candle.
Bull
= rise
Bear
= down.
But if you consider the black and white is less
attractive to you, then you can change the color you want or you like. Examples
of other color combinations are often used color
blue for bull candle and color red for bear
candle. But you have to remember, you will spend a lot of time to
observe the chart, but the colors that appeal to you will help to relieve your
boredom. The most important is that you know how to differentiate between a bull candle with bear candle.
You can see examples of candlestick below.
How, more interesting is not it? If the change of color
like the picture above? You can change the color you want. But most traders
prefer to color use blue for bull candle and
color red for bear candle, because it helps more
visually to recognize the open, close, high and low of the bar chart.
Below is an example of a display chart the movement of
prices using the candlestick chart:
