LINE CHART:
The line chart as shown below.
* A line chart is
simply drawn by connecting either the closing, high or low price and that’s how
you get the line on a chart.
*Line charts can be useful for looking at the “bigger picture” and finding long term trends but they simply cannot offer up the kind of information contained in a candlesticks chart. Out of these 3, the candlestick chart is the most popular followed by the bar chart.
* So from here on, I will be only focused on candlestick chart only but I may end up using the word bar to refer to candlestick pattern as well so just be aware of that.
BAR CHART
The bar chart as shown below.
*The bar chart is simply looks like a “stick” or bar with 2 short knobs on both sides
*The knob on the left is the opening price and the knob on the right is the closing price. Then there’s the wick on the upper end and the lower end.
*The highest point or
level of the wick on the upper end is the highest price that was reached during a
certain timeframe or period and the lowest point of the lower wick is the lowest
price that was reached also during the same time frame or period.
CANDLESTICH CHART
The candle chart as shown below.
Candlestick Chart:
*Candlestick are developed by japanese
* Candlestick charts are a technical tool thats packs data for multiple time frames into single price bars.
*This makes them more useful than traditional open-high ,low-close bars or simple lines that connect the dots of closing prices.
*Candlesticks build patterns that predict price direction once completed.
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