Tuesday, October 19, 2010

3 - CHART INTRODUCTION - part 2

There are three most common charts:

1. Line chart (see fig. 2)
The construction of line chart: is connecting every closing price.

fig. 2
2. Candlestick chart (see fig. 3)


Every bar chart consists of 4 prices.

They are: opening price, highest price, lowest price and closing price.

For you information, candlestick chart has many patterns.
Every pattern tells the story of demand versus supply or buyer versus seller.



fig. 3

2. Bar chart (see fig. 3)
The construction of bar chart is just the same as the candlestick's chart. 
Every bar chart consists of 4 prices.
They are: opening price, highest price, lowest price and closing price.
The different is in the pattern.

fig 4