The starting point of technical analysis is to be able to read the charts correctly and to choose a chart type that suits your analysis style. Technical analysis charts consist of price and date information in its most basic form.

It is not possible to make correct trading decisions without visualizing the price changes of an investment instrument in a certain time period, and to determine the price levels at which the supply and demand balance of this investment instrument change.

Chart Types

The most used chart types in Technical Analysis

  • Line Charts
  • Bar Charts
  • Candlesticks Charts

Technical analysis is a quantitative analysis method. The analysis made with numerical methods is based on estimating the prices that will occur in the future based on the price movements of the previous periods. Charts are the most important tool technical analysis uses to predict the future value of prices.

The charts we use to analyze the Forex market are prepared using the opening, closing, highest and lowest prices in a certain period. Since the Forex market is a 24-hour market, the closing price of parities and commodities is the price seen at 24:15, and the opening price is the price level seen at 01:00.

While performing technical analysis, line chart, bar chart and candlestick chart options and the time period of the chart can be accessed via the toolbar or the charts section of the Meta Trader 4 Platform or Tradingview.com  (click to register for tradingview) chart menu.

Pondering which cryptocurrencies  you should purchase and when? When researching crypto assets, you may come across a special type of price chart called a candlestick chart. That’s why it’s worth taking some time to learn how these work.

Similar to the more familiar line and bar charts, candlestick charts show time on the bed axis and price data on the vertical axis. But unlike simpler charts, candlestick charts contain more information. At a glance, you can see the highest and lowest price an asset has reached in a given time frame, as well as its opening and closing prices.

Chart Scales: Arithmetic and Logarithmic

(Also read our Linear and Logarithmic Graphics Usage and Differences article. )

1Line Charts

It is a type of chart that is formed by combining the closing data at the end of the day. Since it just comprises of shutting information, it isn’t exceptionally liked in present moment breaks down, yet it is habitually utilized in long haul dissects to see the bearing of the pattern obviously and to think about the value course of venture instruments.

In the chart below, the price movements that occurred in the XrpUSD (Ripple ) in the last period are shown on the line chart. 

2Bar Charts

Bar charts are the most commonly used chart type in technical analysis. In this graph type, the value bar shows the opening, shutting, high and low levels. In addition, with the color display of price bars, fall and rise information is given.  When the price bars come together, a lot and enough information is obtained for analysis. This graph type can be utilized for a development, both short and long.

3Candlestick Chart

Candlestick Charts were first used in Japan, and are still widely used in Japan today.Despite the fact that it is liked in different markets, its utilization isn’t generally so normal as bar charts. They are mostly used for short-term, intraday analyzes. Candlestick charts can likewise provide the expert with a ton of data. Below is an example of a candlestick display.

One more component of candlestick charts is the developments that are framed by the shape or game plan of the bars (such as Hammer, shooting star, hanging man). As per these arrangements, exceptionally fascinating investigates can be made, including extremely present moment.

In the wake of choosing the chart type, the value show ought to be organized day by day, hourly or week after week as indicated by the speculation development. Dozens of technical indicators such as volume and averages can be added to price charts. Displays that contain the necessary information and are easy to read should be preferred, not graphics that contain the most information.

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