Types Of Charts - Technical Series | Edelweiss Wealth Management

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In this interesting video of technical Series, the Edelweiss team talks about important Technical charts.

1. Line Chart: These are the most basic form of charts which comprises of a single line from left to right, which links to the closing prices for a given time. A line chart help traders to spot trends in the price movements.

2. Bar Chart: They are also called open high/low close, i.e. OHLC charts. They are a cluster of vertical lines that indicates the price range during the given time. The top part and lower part of the vertical line represents the highest price and lowest price at which the stock had traded during the day. The horizontal line on the left represents the price at which the stock opened, while the closing price is located on the right side of the line.

3. Candlestick Chart:
The main component of this chart is in a shape of a thick body with a line extending above and below the body. The line above the body is called the upper shadow or wick and the line below the body is called lower shadow or wick. The top of the upper shadow represents the highest price while the bottom of the lower shadow depicts the lowest price in that time. Candlestick charts can offer this information for a much larger time. Patterns are formed both by the real body and the shadows. The trader must observe their previous candlesticks and analyze how they have changed over time. Candlestick charts can offer great insights into the market sentiment.

While every chart has its usage, it mainly depends on the type of investor you are and strategies you prefer to use while investing.

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