How to Read Stock Indexes Chart Patterns and What is Indices Trading Charts Analysis Patterns
Indices Trading Charts Analysis Strategies PDF
There are 3 types of charts used in Indices: Line Indices Trading Chart, Bar Indices Trading Chart and Candlesticks Stock Indexes Chart - how to read indices charts beginners PDF.
How to Read Indices Trading Chart Analysis
Line Stock Indexes Charts - indices line indices charts draw a continuous line connecting closing indices prices of indices.
Indices Trading Line Indices Trading Charts - How to Read Indices Trading Charts Beginners PDF
Bar Indices Trading Chart - indices trading bar stock indexes trading charts are displayed as sequence of OHCL bars. OHCL represents OPEN HIGH LOW & CLOSE. The Opening stock indexes price is displayed as a horizontal dash on the left and closing stock indexes price as a horizontal dash on the right.
Indices Trading Bar Indices Trading Charts- How to Read Indices Trading Charts Beginners PDF
The main disadvantage of indices trading bar stock indices chart is that it is not visually appealing, therefore most indices traders don't use them.
Candlesticks Indices Trading Charts - these candlesticks indices charts use the same stock indexes price data as indices trading bar indices charts (open, high, low, and close). However, they in a much more visually identifiable way which resembles a candle with wicks on both ends.
How to Interpret Candlesticks Indices Trading Charts
The rectangle part of the indices candlestick is called the body.
The high and low of the indices candlestick are described as shadows and drawn as poking lines.
How to Read Indices Trading Charts Beginners PDF
The color of the indices candlestick is either blue or red:
- (Blue or Green Color Candlesticks) - Indices Prices moved up
- (Red Color Candlesticks) - Indices Prices moved down
Most indices trading platforms like the MT4 Indices Trading Platform, use colors to mark the direction of the stock indexes price. Indices Candlesticks colors used are blue or green; when stock indexes price moves up, color of indices candlestick is blue; when stock indexes price moves down, color of indices candlestick is red.
Candlesticks Indices Trading Charts vs Bar Indices Trading Charts
When Indices Trading candlesticks stock indexes trading charts are used it is very easy to see if the stock indexes price moved up or down as opposed to when bar stock indexes trading charts are used.
The Japanese candlesticks indices charts trading techniques also have very many candlesticks formations that are used to trade the Indices Trading Markets. These stock indexes chart patterns have different stock indexes trading technical analysis interpretation and the most common are:
How to Read Stock Indexes Chart Patterns Beginners PDF
The above stock indexes candlesticks patterns is what makes the Japanese candlesticks stock indexes chart patterns popular among indices traders and it is why this type of technical stock indices chart analysis are the most widely used when it comes to analyzing the Indices Trading market. The analysis for these indices charts pattern formations in indices trading is the same as that one used in stocks trading.