How to Read the Three Types of Stock Indices Charts
To read stock indices price charts stock indices traders will need to first of all learn stock indices technical trading analysis.
This stock indices technical analysis study of stock indices price movement will analyze historical stock indices price moves using stock indices trends and stock indices chart patterns in an attempt to predict the next likely movement of the stock indices price direction.
A stock indices chart can be described as a graph representation of the stock indices price of a stock indices instrument over a specified stock indices chart timeframe period.
The stock indices charts use the y-axis or vertical axis to represent the stock indices price scale and the x-axis or horizontal axis to represent time scale. Stock Indices prices are then drawn from left to right with the most recent stock indices price being plotted at the furthest point to the right of this stock indices trading chart.
The stock indices chart can have different chart timeframes
MetaTrader 4 Indices Chart Timeframes
M1 for 1 Minute Stock Indices Charts
M5 for 5 Minutes Stock Indices Charts
M15 for 15 Min Stock Indices Charts
M30 for 30 Min Stock Indices Charts
H1 for 1 H Stock Indices Charts
H4 for 4 Hours Stock Indices Charts
D for Daily Stock Indices Charts
W for Weekly Stock Indices Charts
M for Monthly Stock Indices Charts
MT5 Stock Indices Chart Time Frames
M1 for 1 Minute Stock Indices Charts
M2 for 2 Minutes Stock Indices Charts
M3 for 3 Min Stock Indices Charts
M4 for 4 Minute Stock Indices Charts
M5 for 5 Minutes Stock Indices Charts
M10 for 10 Min Stock Indices Charts
M12 for 12 Minutes Stock Indices Charts
M15 for 15 Min Stock Indices Charts
M20 for 20 Minutes Stock Indices Charts
M30 for 30 Min Stock Indices Charts
H1 for 1 H Stock Indices Charts
H2 for 2 Hours Stock Indices Charts
H3 for 3 Hours Stock Indices Charts
H4 for 4 Hours Stock Indices Charts
H6 for 6 Hours Stock Indices Charts
H8 for 8 Hours Stock Indices Charts
H12 for 12 Hours Stock Indices Charts
D for Daily Stock Indices Charts
W for Weekly Stock Indices Charts
M for Monthly Stock Indices Charts
These stock indices chart timeframes are used to plot stock indices price data movement over the specified stock indices chart timeframe period and stock indices traders can then analyze stock indices price movements from these stock indices trading charts.
Using stock indices charts makes it easier for stock indices traders to analyze stock indices price movements because stock indices traders can analyze stock indices price trends as well as stock indices price patterns.
Stock Indices price charts are used to analyze supply and demand for the stock indices price movement. And changes in the supply and demand will be depicted in the stock indices price movement.
Stock Indices technical analysis study is then used to analyze these stock indices price movements on the stock indices charts. Stock Indices technical analysis assumes that all the market information has been factored in the stock indices price action movement based on supply and demand for a particular stock indices instrument and this supply and demand is depicted in the stock indices price action movement that occurs on the stock indices charts price movement.
The Three Stock Indices Charts Types That are Used in Stock Indices Technical Analysis
The three stock indices chart types used for stock indices technical analysis are:
- Line Stock Indices Chart
- Bar Stock Indices Chart
- Candlestick Stock Indices Chart
Stock Indices Line Chart
Stock Indices line chart draws a continuous line from one closing stock indices price to the next closing stock indices price and this then depicts the movement of stock indices price of a particular stock indices instrument over a period of time on the stock indices trading chart.
Stock Indices line charts do not provide stock indices traders with a lot of details and information about stock indices price movement and the only information plotted by this line stock indices chart is of where the stock indices price closed for a specific stock indices chart timeframe period.
The stock indices line chart can be used to interpret stock indices trends based on the direction of the stock indices line chart movement.
Stock Indices Bar Chart
A bar chart is used to show the opening stock indices price, the high stock indices price, the low stock indices price & the closing stock indices price.
The bar chart will depict the whole stock indices price range for each stock indices trading period - using the above stock indices price data points - opening stock indices price, the high stock indices price, the low stock indices price & the closing stock indices price.
The vertical bar indicates the stock indices instrument trading range as a whole for the period
Tops of the bar indicates the high stock indices price
The bottom of the bar indicates the low stock indices price
A dash that is drawn to the left of the stock indices price bar indicates the opening stock indices price
A dash that is drawn to the right of the stock indices price bar indicates the closing stock indices price
Stock Indices Candle Chart
A candlestick chart is used to show the opening stock indices price, the high stock indices price, the low stock indices price & the closing stock indices price.
A stock indices candle chart is represented in a easier to read and interpret format compared to the stock indices bar chart.
Candle stock indices charts represent the same data as that of a bar stock indices chart but in a much easier to analyze format.
Stock Indices Candles have two parts: the body of the candle and the shadow of the candlestick
Stock Indices candlesticks have a body which is the difference between the opening stock indices price & closing stock indices price. The body of the stock indices candlestick will have different colors depending on the direction of the stock indices price.
Blue or Green Candlesticks for when stock indices price moves up
Red Candlesticks for when stock indices price moves down
The stock indices candlesticks also have protruding lines above and below the body of the stock indices candlestick - these protruding lines are known as shadows. The upper shadow represents the high stock indices price & the lower shadow represents the low stock indices price.
How to Read the Three Types of Stock Indices Charts
