Stock Chart Types: Line, Candlestick and Bar
A Stocks chart is a graphical representation of stocks price movement of a stocks instrument over a given period of time.
Drawn on a grid and the user is at liberty to select which stocks chart time frame they want to trade with. Stocks trader may select to use hourly charts, daily charts or even 1 minute chart timeframes.
To draw stocks charts, three techniques are used. Methods used to draw the stock charts defines the type of stocks trading chart.
The three types of stocks charts are: - Candlesticks Chart Stock - Bar Chart Stocks
- Line charts
- Bar charts
- Candles stocks charts - Most popular
Line Chart
A single line is drawn from one closing stocks price to the next thus forming a continuous line.
This type of trading chart provides very little data on the chart and is therefore not very popular among stock traders. In fact this type of stocks chart is rarely used by traders.
Line Chart in Stock - This type of chart leaves out important data about stocks price movement. Information such as opening, high and low point of the stocks trade price that aren't represented on the graph.
This makes this type of stocks line chart to be considered sketchy by stocks technical analysts.
The stocks chart below shows example of a stocks line chart.
Bar Chart
Stocks Bar Chart Stock - This type of chart shows the opening, closing, the high and the low, for a particular stocks price interval and is represented by bars that look like the ones drawn below - hence its name bar charts
- Bar Chart Stock - bar chart has a vertical bar showing the total stocks price movement.
- Left horizontal bar the opening
- Right horizontal bar the closing
- High & low denoted by the highest & lowest point
However, these stocks bar charts aren't very easy to work with, especially when they are not magnified. It becomes very hard to analyze the bar charts with ease when trading the stock trading market thus making them not very popular among stock traders.
A Bar chart that is not magnified makes it hard to view the opening & closing stocks price as illustrated by this example:
Candle Chart
Stocks Candlesticks Chart Stock - This is the most widely used type of stocks charts, they resemble candles, thus their name - candlesticks charts.
Candlesticks charts shows opening, closing, the high and the low of a particular stocks price interval.
The range between the open stocks price and the close stocks price is called the body of the candlestick.
Stock candlesticks charts is the most popular type of stocks charts among online traders because it is easiest to interpret when trading the stock market. Stocks candlestick charts also gives a lot of data about the stocks price movement. This makes candlesticks charts the most widely used type of charting in Stocks.
Stocks Candlesticks Chart Stocks
Below is example of candlesticks charts. To learn more about stocks trading candlesticks charts, read this topic: Technical Analysis of Japanese Candlesticks Patterns in Stocks.
How to Select These Stocks Chart Types on MetaTrader 4 Platform
To draw any of these types of stocks trading charts on the MT4 Platform a trader can use the buttons below found on this MT4 stock platform.
Drawing Chart Stock on MetaTrader 4
- To Select a Bar Chart Click the Bar Button
- To Choose a Candlesticks Chart Click the Candlestick Button Key
- To Select a Line Chart Stock - Click the Line Button
