The Six Different Types of Stock Index Charts

What are the Different Stock Index Chart Types?

There are several different types of stock index charts used in stock index technical analysis & these stock index charts are explained below.

A trader can use this stock index chart types tutorial to find out which stock index chart types are best for them to use when analysis the stock index market stock index trading price movement:

Line Charts

Line stock index charts are basic stock index charts that only draw a continuous line connecting closing stock index trading price from one stock index chart timeframe period to the next.

Stock Index line chart provides stock index trading price data as a continuous line that connects a series of stock index closing prices.

The stock index line chart will not draw other stock index trading price information such as the high of the stock index trading price, the low of the stock index trading price & the closing of the stock index trading price.

Stock Index traders can also use stock index line charts to identify and trade stock index technical analysis patterns such as double top & double bottom.

Stock Index traders can also use stock index line to identify stock index trends & to draw stock index trend lines on these stock index line charts.

Bar Charts

Stock Index bar charts will show the stock index trading price action data of a particular stock index chart timeframe period.

The stock index bar chart will show high price, low price, open stock index price & close stock index trading price.

The bar chart will be represented by a vertical line that represents the bar and then there will be a small dash to the left of this vertical bar showing the opening stock index price & another small dash to the right of this vertical bar showing the closing stock index trading price.

A stock index bar will continue and start plotting from where the previous stock index trading price bar left.

Stock Index traders can also use stock index bar charts to identify and trade stock index technical analysis patterns.

Stock Index traders can also use stock index bar charts to identify stock index trends & to draw stock index trend lines on these stock index bar charts.

Stock Index Candles Charts

Stock Index candlesticks charts are used to represent all the data of the stock index trading price action movement which includes: high price, low price, open price and close price.

A stock index candlestick has two parts the body of the stock index candlesticks and the shadows of the stock index candle.

The body of the stock index candlestick shows the stock index trading price action between opening stock index price & closing stock index trading price. The body of the candlesticks will have different colors depending on the direction of the stock index trading price movement, blue or green candlesticks when price moves upwards and red stock index candlesticks when price moves down.

The length of the body of the candlesticks will determine how much stock index trading price movement there was between the opening stock index price & closing stock index trading price for a particular stock index chart timeframe 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 stock index trading price of a particular stock index trading price period.

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

Stock Index candlesticks patterns is a stock index technical analysis study that explains how to read stock index candlesticks and how to interpret stock index signals from these stock index trading candlesticks patterns.

These stock index candlesticks patterns include:

• Doji Stock Index Candlestick
• Marubozu Stock Index Candlestick
• Hammer Stock Index Candlestick
• Inverted hammer Stock Index Candlestick
• Shooting Star Stock Index Candlestick
• Piercing Line Stock Index Candlestick
• Dark Cloud Cover Stock Index Candlestick
• Morning Star Stock Index Candlestick
• Evening Star Stock Index Candlestick
• Bullish Engulfing Stock Index Candles
• Bearish Engulfing Stock Index Candles

Heikin Ashi Charts

Heikin-Ashi is Japanese & means average bar.

Heikin Ashi charts are used because it is easier to identify stock index trends using Heikin Ashi Charts

Heikin-Ashi charts look like stock index candlesticks but are calculated using a different technique.

These Heikin Ashi candle stock index trading price point are calculated as follows:

Opening Price - Opening price is calculated as a average of the opening & closing price of the prior candlestick

High Price - the high price of Heikin Ashi candle is chosen from one of the following data points of the previous candlestick - high, opening price and closing price - depending on which has the highest value

Low Price - the low price of Heikin Ashi candle is chosen from one of the following data points of the previous candlestick - low, opening price & closing price - depending on which has the lowest value

Closing Price - Closing price is calculated as the average of the opening price, high price, low price & closing price of the prior candlestick

Heikin Ashi stock index charts generate stock index trading signals which are slower as when compared to stock index candles charts & this is because of the method of calculation used to plot the Heikin Ashi stock index charts.

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

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

Renko Stock Indices Trading Charts

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

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

When stock index trading price moves by this distance the Renko charts adds another square block.

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

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

Point & Figure Indices Trading Charts

The point & figure charts are used to filter out the time when the stock index market is consolidating

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

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

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

The Six Different Types of Stock Index Charts Used in Stock Index Trading