Types of Stock Indices Charts

How to Understand Different Types of Indices Charts

There are different types of stock indices charts used in stock indices technical analysis and the three most common stock indices charts are line charts, bar charts & candle charts.

Stock Indices Line charts & Stock Indices Bar Charts are not as popular as Stock Indices Candlesticks Charts

Stock Indices Candlesticks Charts are popularly used in the stock indices market because the stock indices candlestick shows the direction of stock indices price movement based on the color of the candlestick. The distance between the opening price & closing price is called the body of the candlestick, the top and bottom lines are known as shadows and these represent the high and low of the stock indices price.

The body of a stock indices candlestick is based on the opening stock indices price & closing stock indices price of a particular stock indices chart timeframe period.

If the Opening stock indices price is lower than the closing stock indices price the color of the candlestick body will be blue or green meaning stock indices prices went up. A bullish stock indices candle - price moved up - blue or green color stock indices trading candlestick.

If the Opening stock indices price is higher than the closing stock indices price the color of the candlestick body will be red meaning stock indices prices went down. A bearish stock indices candle - price moved down - red color stock indices trading candlestick.

The thin lines that protrude above & below the stock indices candlestick body are called wicks or shadows.

Stock Indices Bar Charts

Stock Indices bar charts are used to display information that is similar to stock indices candlesticks only that this charting method uses bars to plot stock indices price movement instead of candlesticks. The bar has a line on the left and right side - the left side is the opening price & the right side is the closing price. Different colors are used for different bars to display the direction of the stock indices price movement - green bars for when stock indices price moves upwards and red bars for when stock indices price moves down.

Stock Indices Line Charts

Stock Indices line charts are used to draw the closing price as a continuous line on the stock indices trading chart.

Line stock indices charts are the simplest stock indices charts that don’t give much details on the stock indices chart because just a line is drawn to connect one stock indices closing price to the next stock indices closing price and this line chart will show a series of the stock indices closing prices.

Stock Indices traders use stock indices charts to determine the direction of the market and to identify buy and sell stock indices setups & signals.

The three commonly used stock indices charts - Line Charts, Bar Charts & Candlesticks Charts are provided for on the stock indices trading platform - MT4 and MT5 platform and stock indices traders can choose the type of stock indices charts that they want to trade with.

How to Understand Different Types of Stock Indices Charts

Different types of stock indices charts can be used by stock indices traders to analyze, interpret and understand the supply and demand of a stock indices instrument.

The stock indices charts studies can help stock indices traders identify various stock indices trading setups that have different interpretations for supply & demand.

Stock Indices traders can use these stock indices setups to identify stock indices trading signals of where to buy & sell and where to close open stock indices trades.

To read a stock indices chart a trader will need to learn about the three different stock indices chart types.

Stock Indices traders will also need to know about the various stock indices chart timeframes for these stock indices charts - 1 minute stock indices chart timeframe, 5 minutes stock indices chart timeframe, 15 minutes stock indices chart timeframe, 30 minutes stock indices chart timeframe, 1 hour stock indices chart timeframe, 4 hours stock indices chart timeframe, 1 day stock indices chart timeframe, 1 Week and 1 month stock indices chart time frame.

Types of Different Stock Indices Charts