Charts are working tools of technical analysts. They use the charts to plot the price movements of a stock over specific time frames. Its a graphical method of showing where stock prices have been in the past.

A chart gives us a complete picture of a stock's price history over a period of an hour, day, week, month or many years. Typically, x-axis represents time; the y-axis represents price. By plotting a stock's price over a period of time, we end up with a pictorial representation of any stock's trading history. Charts also depicts the history of the volume of trading in a stock.

Line Charts

" Line Charts " are formed by closing prices of a specific stock or market over a given period of time.

It gives a clear visual illustration of the trend of a stock's price or market's moment. which is used by traders for many years.

Bar Chart

" Bar Chart " is the most popular method traders use to see price action in stocks over a period of time. Such visual representation of price activity helps in spotting trends and patterns. 

Although daily bar chat are best known , bar chart can be created for any time period - weekly and monthly for example.

• A bar shows the high price for the period at the top and the lowest price at the bottom of the bar.
  

• Small lines on the either side of the vertical bar serve to mark the opening and closing prices.
  

• The opening price is marked by a small tick to the left of the bar; the closing price is shown by a similar tick to the right of the bar.

 

 

 

 

Candlesticks

Candlestick charts provide visual insight to current market psychology. A candlestick displays the open, high, low, and closing prices in a format similar to modern-day bar-chart, but in a manner that accentuates the relationship between the opening and closing prices. Each candlestick represents one period (eg., day) of data.

• Candlestick is created using the data of high, low, open and closing prices for each time period that you want to display.

 

• The hollow portion is called        "the real body" the long line above and below the body represents the high and low range and are called "shadows" or "tails" or " wicks".

 

• The high is marked by the top of upper shadow and the low by the bottom of the lower shadow.

• If stocks closes higher than its opening price , a hollow candlestick is drawn with the bottom of body representing the opening price and top of the body represents closing price. 

• If the stocks closes lower than its opening price, a filled candlestick is drawn with the top of the body representing the opening price and the bottom of the body representing the closing price.