What types of charts are there
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The three most used charts are:
- Candlestick chart
- Line chart
- Bar chart
Candlestick chart
Candlestick charts are a type of technical analysis that consolidates data from many time frames into a single price bar. This distinguishes them from standard open-high, low-close bars or simple lines connecting the dots of closing prices. Candlesticks create patterns that, if completed, forecast price direction. This colourful technical instrument, which goes back to 18th-century Japanese rice dealers, gains depth with proper colour coding. Candlestick chart is also on of the most used.
Hundreds of these patterns, with names such bearish dark cloud cover, evening star, and three black crows, are now recognized by many traders. Single bar patterns such as the doji and hammer have also been used into a slew of long- and short-side trading methods.
Line chart
A line chart is a graphical depiction of an asset's historical price activity that uses a continuous line to link a sequence of data points. This is the most basic sort of chart in finance, and it usually just shows the closing prices of a securities over time. Line charts may be used for any timeframe; however, they are most commonly employed to show daily price fluctuations. It is a graph that shows data as a succession of data points linked by straight line segments. A line chart uses a single, continuous line to visually display the price history of an item.
Bar chart
Bar charts are made up of many price bars, each one depicting how the price of an asset or security changed over time. Each bar usually displays the open, high, low, and closing (OHLC) prices; however, this may be changed to merely display the high, low, and close (HLC).
A bar chart shows the open, high, low, and close prices of an asset or security over a certain time period. The high and low prices for the time are represented by the vertical line on a price bar.
As mentioned, candlestick chart is one of the most used, because it also offers easier and better reading of charts using technical analysis.
