A chart is a representation of price
movement over a specific period of time(time frame) and is
composed of an x-axis (time) and a
y-axis (price). The choice of the time frame employed
depends on the user's need. It is
obvious that an intra-day scenario will not be based on a
monthly chart.
Line Chart
A line chart shows a line connecting
the "closing prices". The closing is the last price
recorded at
the end of a specific period of time
(session).
 |
| Line Chart |
Bar Chart
Bar chart have all characteristics
mentioned for the line chart also hold true for the bar chart.
However, the construction is a
different one. The bar chart is composed of a high (highest price
during a session), a low (lowest price
during a session) and the close. All that is required is to
draw a vertical line (bar) from the
high to the low. Then, set a horizontal dot from the vertical line
to the right, representing the close.In
some cases customers refer also to the opening price; a dot drawn on
the left side of the bar. The bar graph is in all probability the
most popular chart in use today.
 |
| Bar Chart |
Candlestick Chart
The simple candle on candlestick chart
is formed by prices: the high, the low, the opening and the closing.
The variation to the bar graph is that the open and the close
form|make the cornerstones for the, so named, real body.The body is
white if the closing is higher comparate to the opening. The contrary
is true for the black body. The candlestick charting method is an old
Japanese creation dating from the late 18th century. The theory tries
to unveil trend reversal or continuation signals.
Various tools of analysis (trend
lines,CCI, Bollinger Bands etc.) can be applied in combination
with the candlesticks char
 |
Candlestick Chart
|
Renko Chart and Three-line break
Renko means brick in Japanese and
provides a reversed back down. One of the biggest mistakes traders
make is to be caught on the wrong side of the market. Three-line
break charts reduce this kind of error by defining the trend in an
unambiguous way. Trading with the trend can be rephrased as trading
with the three-line break trend. A renko chart provides an ability to
represent a predefined move in the price. While each candlestick or
bar provides the low, high, open, and close of a sample period, renko
charts provide an additional renko block only if the price has moved
and closed at the predetermined setting. In other words, if the
trader wants to know only if there is persistence in the sentiment,
seeing consecu tive renko blocks would confirm that the market is
showing the ability to push further brick by brick. This is very
useful, and we will show you how to use renko blocks in
combination with other indicators to
enable precision exiting.three linebreak and renko charts to show
patterns of bull or bear bias.The key advantage of using three-line
break or renko charts is to reveal whether the sentiment of the
market has changed either at the large time frames or the smallest
time frames. It is a tool worth exploring.
 |
Renko Chart |
Post a Comment