How to Read Stock Charts Beginners Course
Stock Charts Analysis
There are Three types of charts used in Stocks: Line Chart, Bar Chart and Candlesticks Chart - how to read stocks charts beginners PDF.
How to Read Stock Chart Analysis
Line Charts - stocks line charts draw a continuous line connecting closing stocks prices of a stocks.
Stocks Line Charts - How to Read Stock Charts Beginner Traders Guide
Bar Chart - stocks bar charts are displayed as sequence of OHCL bars. O H C L represents OPEN HIGH LOW and CLOSE. Opening stocks price is displayed as a horizontal dash on the left & closing stocks price as a horizontal dash on the right.
Stocks Bar Charts- How to Read Stock Charts Beginner Traders Guide
The main disadvantage of stocks bar chart is that it is not visually appealing, therefore most traders don't use them.
Candlesticks Charts - these stocks candles charts use the same price data as stocks bar charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle with wicks on both ends.
How to Analyze Candles Charts
Rectangle part of the stocks candle is called the body.
The high and low of the stocks candle are described as shadows and plotted as poking lines.
Stocks Candles Charts
The color of the stocks trading candle is either blue or red:
- (Blue or Green Color Candles) - Stocks Prices moved up
- (Red Color Candlesticks) - Stocks Prices moved down
Most stock trading platforms like the MT4 Stock Platform, use colors to mark the direction of the stocks price. Stocks Candles colors used are blue or green: when price moves up, color of stocks candle stick is blue: when price moves down, color of stocks candlestick is red.
Stocks Candles Charts vs Bar Charts
When Stock candlesticks charts are used it is very easy to see if the stocks price moved up or down as opposed to when bar charts are used.
The Japanese candles charts techniques also have very many candlesticks formations which are used to trade the Stocks Markets. These stocks chart patterns have different technical analysis interpretation & the most common are:
How to Read Stock Chart Patterns Beginners PDF
The above stocks candles patterns is what makes the Japanese candlesticks chart patterns popular among stocks traders & it is why this type of technical stocks chart analysis are the most widely used when it comes to analyzing the Stocks market. The analysis for these stocks charts pattern formations in stock trading is the same as that one used in stock trading.
