Various Types of Charts
Posted by tushar chatterjee on Sunday, May 22, 2011
Under: Technical analysis
Though thee are many types of chart but most important types are as follows
It is the very basic chart which consists of only closing price under a particular time frame, here, like any other chart, time scale remain along the X axis and price scale stays with Y axis and closing price of a security under a particular time frame is plotted and then joined by a line to get a line chart
In comparison with the line chart, which consists of closing price only, bar chart is far more informative which shows much more information at a glance

Now ladies and gentlemen, please give a big hand as our darling Japanese candlestick chart is on the stage!!!!!!!!!!!!!
Like bar chart it is also derived form open /high/low/close of a security under a given time frame, like bar charts it is far more informative than its line counterpart, but it tells us more, various size of candles, individually and collectively plays a significant role and gives us very strong signals for future market action, candle color, candle size, size of its shadow, all are so much important to a trader that it can be used as all in all in the market. Though it’s mostly used along with some indicators to refine its results to even finer degree.
I know at first it will as tough as Hebrew to understand but once we master this charting system, we will be in a much safer water
- Line chart
- Bar chart or OHLC chart
- Candle stick chart
Line chart
It is the very basic chart which consists of only closing price under a particular time frame, here, like any other chart, time scale remain along the X axis and price scale stays with Y axis and closing price of a security under a particular time frame is plotted and then joined by a line to get a line chart

Bar chart or ohlc chart
As the name suggests this kind of chart is made of bars contain Open. High. Low and Close price of a security, thus earning the name OHLCIn comparison with the line chart, which consists of closing price only, bar chart is far more informative which shows much more information at a glance

Japanese candlestick chart
Now ladies and gentlemen, please give a big hand as our darling Japanese candlestick chart is on the stage!!!!!!!!!!!!!
Like bar chart it is also derived form open /high/low/close of a security under a given time frame, like bar charts it is far more informative than its line counterpart, but it tells us more, various size of candles, individually and collectively plays a significant role and gives us very strong signals for future market action, candle color, candle size, size of its shadow, all are so much important to a trader that it can be used as all in all in the market. Though it’s mostly used along with some indicators to refine its results to even finer degree.
I know at first it will as tough as Hebrew to understand but once we master this charting system, we will be in a much safer water
In : Technical analysis