Types of Technical chart
A. Line Chart
B. Bar Chart
C. Candlestick Chart
The Line chart is considered as the simplest form of a chart as it shows only the closing prices for each time segment. The line is formed by connecting the closing prices over the time frame. Line charts do not provide visual information of the trading range for the individual points such as the high, low and opening prices.
The closing price is often considered to be the most important price in commodity data compared to the high and low for the day and henceforth it is the only value used in line charts.
The Bar chart is made up of a series of vertical lines that represent each data point. This chart shows the changes in price for each time segment. The vertical line represents the high and low for the trading period, along with the closing price. The close and open are represented on the vertical line by a horizontal dash. The opening price on a bar chart is illustrated by the dash that is located on the left side of the vertical bar. Conversely, the close is represented by the dash on the right. Generally, if the left dash (open) is lower than the right dash (close) then the bar will be shaded black, representing an up period for the commodity. i.e., It indicates that it has gained value. A bar that is colored red signals that the commodity has gone down in value over that period. When this is the case, the dash on the right (close) is lower than the dash on the left (open).
3. Candlestick Chart
The candlestick chart is more visually appealing when compared to the bar chart. The candlestick chart also has a thin vertical line showing the periods trading range. The formation of a wide bar on the vertical line,
which illustrates the difference between the open and close. The colors play a vital role in briefing the happenings during the trading period.
It is important to know the configuration of candle stick chart site we are operating, as different sites use different standards.
There are two color constructs for days up and one for days that the price falls. When the price of the commodity is up and closes above the opening trade, the candlestick will usually be white or clear. If the commodity has traded down for the period, then the candlestick will usually be red or black, depending on the site.
If the commoditys price has closed above the previous days close but below the days open, the candlestick will be black or filled with the color that is used to indicate an up day.