How to Read the Three Types of Stock Charts

To read price charts stock traders will need to first of all learn trading analysis.

This technical analysis looks at past price moves - using trends and patterns - to try and figure out where the price might go next.

A chart graphs an asset's price over a chosen time period.

The charts utilize the vertical axis, or y-axis, to depict the price scale, while the horizontal axis, or x-axis, illustrates the time scale. Prices are represented from left to right, with the latest price plotted on the far right of the chart.

The chart can have different chart time frames

MT4 Chart Time-frames

M1 for 1 Minute Charts

M5 for 5 Minutes Charts

M15 for 15 Minute Charts

M30 for 30 Minute Charts

H1 for 1 Hour Charts

H4 stands for 4-hour stock charts

D for Daily Stock Charts

W for Weekly Stock Charts

M for Monthly Stock Charts

MT5 Chart Time-frames

M1 for 1 Minute Charts

M2 for two Min Charts

M3 for 3 Minute Charts

MetaTrader for 4 Minute Charts

M5 for 5 Minutes Charts

M10 for 10 Minute Charts

M12 for 12 Minute Charts

M15 for 15 Minute Charts

M20 for 20 Minute Charts

M30 for 30 Minute Charts

H1 for 1 Hour Charts

H2 for 2 Hours Stock Charts

H3 for 3 Hours Stock Charts

H4 stands for 4-hour stock charts

H6 for 6 Hours Stock Charts

H8 for 8 Hours Stock Charts

H12 for 12 Hours Stock Charts

D for Daily Stock Charts

W for Weekly Stock Charts

M for Monthly Stock Charts

These time frames plot price changes over set periods. Stock traders study the moves on these charts.

Using charts makes it easier for stock traders to analyze price movements because stock traders can analyze price trends and also price patterns.

Price charts help study the amount of buying and selling for the price. Changes in buying and selling are shown in the price changes on the chart.

The study of technical analysis is then used to understand what these price changes mean on the charts. Technical analysis says that all market information is already part of how the price moves because of how much of something is available and how much people want it for a certain indices tool, and how much is available and wanted is shown by the price movement on the charts.

What are the three main stock chart types in technical analysis?

The 3 chart types used for trading analysis are:

Line Stock Chart
Bar Stock Chart
Candlestick Chart

Stock Line Chart

Indices line chart draws a continuous line from one closing price to the next closing price and this then depicts the movement of price of a specific indices instrument over a period of time on the chart.

Index line charts give stock traders little detail on price moves. They only show closing prices for each time period.

The line chart can be utilized to assess trends based on the movement of the indices line chart.

Stock Indices Bar Chart

A bar chart serves to visually represent the opening price, the highest attained price, the lowest attained price, and the final closing price.

Bar charts display the full price range for each time period. They include open, high, low, and close prices.

The vertical bar visually represents the complete trading range for the instrument across the specified price period.

Tops of the bar reflects the high price

The bottom of the bar reflects the low price

A hyphen that's drawn to the left of the price bar reflects the opening price

A hyphen that's drawn to the right of the price bar reflects the closing price

Stock Candle Chart

A candle chart serves to visually represent the opening price, the maximum reached price, the minimum reached price, and the final closing price for a given period.

A candle chart is presented in a more comprehensible format than the indices bar chart.

Candle charts present the identical dataset found in bar charts but organized in a format considerably more conducive to analysis.

Stock candlesticks consist of two primary elements: the central body and the upper/lower shadows.

A candlestick features a body, which represents the difference between the open and close prices. The color of this body changes based on the direction in which the price moved during that period.

Blue or Green Candlesticks for when price moves up

Red Candles for when price moves & heads downwards

Candlesticks include lines extending above and below their body, referred to as shadows. The upper shadow reflects the highest price during the time period, while the lower shadow indicates the lowest price.

How to Read the Three Types of Stock Charts

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