Stock Charts
Traders and investors always look at stock charts when they make trading decisions, because those charts contain essential information about the behavior of stock prices. Here are some familiar types of stock charts that facilitate our stock performance analysis.
Figure 1. Line Chart of Stock Prices
A line chart is simply a line graph connecting stock prices at different times. Shown in Figure 1, examples of a daily chart and an intra-day chart:
Figure 2 shows an example of a bar chart, displaying the daily open, high, low and close prices of Hutchison. One can see that, compared with the line chart, the bar chart reveals more information about the prices of a stock.
Candlestick charts are very popular in Asia. Essentially, they contain the same information as bar charts. Figures 3 shows an example of a candlestick chart:
Figure 3. Candle Stick Chart

Figure 4. Daily price candlestick chart with daily volumes.
Besides price, trading volume is an important source of market information. The common practice is to plot stock prices together with volume bars or other technical indicators to be discussed in detail in the next section. These accompanying graphs are called "Reference Charts." Figure 4 shows a stock chart with daily volumes.
| Sitemap |
Back to the Top | ||||||||
| |||||||||