The stock charts are everywhere in our papers as on the Internet. Impossible to ignore. It is true that the visual representation of the history of a stock is by far the most eloquent and can read a graph on the history of the company, its ups and downs. Moreover, in many cases, it is reassuring to observe the curve of the action before making a decision in stock market investing.
The graphical representation is also the basis of technical analysis, market-making method used by quantitative analysts. They pitch their trends and trace their mathematical indicators.
In this area, more than any other, a picture is worth a thousand words. Follow the guide to understanding stock charts.
Of all the types of tracks, the simplest is the continuous curve. This curve represents the closing price of the share for each day connected by a line.
The horizontal axis represents time and the vertical axis that of course.
A bar chart displays data on a graph of several courses: the opening price, highest and lowest of the meeting and the closing price. This chart type is by far the most widely used in technical analysis and even in currency trading for dummies .
As we see the following chart, the top of each bar represents the highest price reached during the meeting, the bottom bar is the lowest during the session.
The closing price is represented by the small horizontal line on the right of the bar, the opening price is shown on the left following the same system.
Candles, Candleholders and Candlesticks
This technique comes from Japan. She appeared in the 18th century when it was used to record the price of rice. The method has been implemented with financial markets and is frequently used to record historical data on a graph, instead of a simple curve or bar charts.
As for the bars, the information necessary for their course are four in number: the opening price of
Closing the highest and lowest of the session. Unlike bar charts, this technique revealed an additional concept, if the price fell during the period, the candlestick is black if the price went up, the product is white.
The representation of volumes
The volume is represented on the graph classes with small sticks at the bottom of the chart.
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