What should I look for in a Stocks Chart?
The most popular stocks chart types are:
- Line Charts
- Bar Charts
- Candles Charts
The best chart to trade with when you want to start stocks is the candlesticks chart. The candlesticks charts are easy to use and easier to interpret when trading. Beginner traders should start with this type of chart which is easier to use when it comes to technical analysis of stocks charts.
Candle-sticks - these use the same price data as 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 Candlesticks Charts in Stocks
The rectangle part is known as body.
The high & low are described as shadows and plotted as poking lines.
Stocks Candlesticks Charts - What should I look for in a Stocks Chart?
The color of the candlestick is either blue or red
- (Blue or Green Color) - Stocks Prices moved up
- (Red Color) - Stocks Prices moved down
Most trading platforms like the MetaTrader 4 Stock Platform, use colors to mark the direction of the candlesticks. Colors used are blue or green: when price moves up - green candlesticks, when price moves down - red candlesticks.
