Six Different Types of Charts

What are the Different Chart Types?

There are several different types of charts used in trading analysis & these trading charts are shown below.

One can use this chart types tutorial to find out which trading chart types are the best for them to use when analyzing the market price movement:

Line Charts

Line charts are basic charts that only draw a continuous line connecting closing price from one chart time frame period to the next.

Gold line chart provides price data as a continuous line that connects a series of closing prices.

The gold line chart will not draw other price information like the high of the price, the low of the price & closing of the price.

Traders can also use gold line charts to identify & trade analysis patterns like double top and double bottom.

Traders can also use gold line to identify trends & to draw trendlines on these gold line charts.

Bar Charts

Gold bar charts will show the price action data of a particular time-frame period.

The gold bar chart will show high price, low price, open price and close price.

The bar chart will be represented by a vertical line that represents the bar and then there'll be a small dash onto the left side of this vertical bar representation illustrating the opening price & another small dash onto the right side of this vertical bar representation illustrating the closing price.

A gold bar will continue and start plotting from where the previous bar left of.

Traders can also use gold bar charts to identify & trade analysis patterns.

Traders can also use gold bar charts to identify trends & to draw trendlines on these gold bar charts.

Candles Charts

Candlesticks charts are used to represent all the info of the price action movement that includes: high price, low price, open price and close price.

A gold candle has two parts the body of the candlesticks and the shadows of the candle.

The body of candle shows the price action between opening price & closing price. The body of the candlesticks will have different colours depending on the market direction of the price movement, blue or green candles when price moves upwards & red candles when price moves down.

The length of the body of the candlesticks will determine how much price movement there was between the opening price and closing price for a particular time-frame period.

The lower and upper thin lines protruding out of the candlestick body are known as shadows and the bottom and top of these shadows represent the low and high price of a specified price period.

A lot of information can be analyzed by trades from the body and the shadows of a candle.

Candlesticks patterns is a technical analysis study that describes and explains how to read candles and how to interpret signals from these candlesticks patterns.

These candles patterns include:

Doji Candle
Marubozu Candlestick
Hammer Candle
Inverted hammer Candle
Shooting Star Candle
Piercing Line Candle
Dark Cloud Candle
Morning Star Candle
Evening Star Candle
Bullish Engulfing Candles
Bearish Engulfing Candles

Heiken Ashi Charts

Heikin-Ashi is Japanese & means average bar.

Heikin Ashi charts are used because it's easier to identify trends using Heiken Ashi Charts

Heikin-Ashi charts look like candlesticks but are calculated using a different method.

Heiken Ashi candle-stick price points are calculated as follows:

Opening Price - Opening price is calculated as a average of the opening and closing price of the prior candle
High Price - the high price of Heikin Ashi candlestick is selected from one of the following data points of the previous candle - high, opening price and closing price - depending on which one has the highest value.
Low Price - the low price of Heikin Ashi candle is selected from one of the following data points of the previous candle - low, opening price & closing price - depending on which one has the lowest value.
Closing Price - The Closing price is calculated as the mean average of the opening price, high price, low price and closing price of the prior candlestick

Heikin Ashi charts generate signals that are slower as when compared to candles charts and this is because of the technique of calculation used to plot the Heiken Ashi charts.

The slower signals generated by Heikin Ashi charts can be used to trade more volatile prices because this Heikin Ashi charts delays in reacting to prices will help prevent traders from trading gold whipsaw signals.

Heikin Ashi charts have less gold whip saw signals because of the delay in calculation of the prices.

Renko Charts

Renko charts adds a square block on the chart when price moves by a certain given distance.

Renko charts are also used to filter out the time when the market is consolidating

When market price moves by this distance the Renko chart adds another square block.

The square block will be added in the direction of the price move.

Renko charts are used to identify the trends & trade these trends.

Point and Figure Charts

The point and figure charts are used to filter out the time when the market is consolidating

Point & Figure charts are drawn with X & 0 columns that are vertical.

Point & figure charts are used to compress time using the point and figure chart representations because point & figure adds a new X or 0 vertically rather than next to the previous point & figure & only when the point and figure calculates the trend to have changed then a new vertical bar is then added to the right side of the point and figure charts.

Point & Figure charts are used to identify the trends & trade these trends.

The 6 Different Types of Charts Used in Gold Trading

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