Basic Chart Types

Bar Charts

Bar chart illustration is simple. Within each time-frame, a single vertical bar is plotted representing the price range within that timeframe. Each bar may have a left tick showing an Opening Price and a right tick showing a Closing Price. The top of the bar is the highest price reached within that time-frame and the low of the bar is the lowest price reached within that time-frame. The timeframe can be 1 tick, 1 minute, 1 day, 3-days, 1 week, 1 month or 3-months, or any finite numbers to represent time. The relationship between the Opening Price (left tick) and the Closing Price (right tick) represent the investor's sentiment and the trader's psychology within the trading session.

Line Charts

Line charts are based on "closing prices" only charts and have a cleaner look. They do not have open, high and low values plotted and potentially eliminate the noise and truly represent the value of the current price and true investor sentiment. Line charts can be plotted for highs, lows and open or pivot prices, but are only plotted for a single value object series in the entire chart. Line charts are usually plotted when there is a comparison between two market instruments such as spread charts, comparison charts and relative strength charts. Also, line charts are useful for small illustrations and trend displays. Most indicators are plotted using line charts, namely RSI and Stochastics.

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