The Six Different Types of Stock Indices Charts
What are the Different Stock Indices Chart Types?
There are several different types of stock indices charts used in stock indices technical analysis and these stock indices charts are explained below.
A trader can use this stock indices chart types tutorial to find out which stock indices chart types are best for them to use when analysis the stock indices market stock indices price movement:
Line Stock Indices Charts
Line stock indices charts are basic stock indices charts that only draw a continuous line connecting closing stock indices price from one stock indices chart timeframe period to the next.
Stock Indices line chart provides stock indices price data as a continuous line that connects a series of stock indices closing prices.
The stock indices line chart will not draw other stock indices price information such as the high of the stock indices price, the low of the stock indices price & the closing of the stock indices price.
Stock Indices traders can also use stock indices line charts to identify & trade stock indices technical analysis patterns such as double top & double bottom.
Stock Indices traders can also use stock indices line to identify stock indices trends & to draw stock indices trend lines on these stock indices line charts.
Bar Stock Indices Charts
Stock Indices bar charts will show the stock indices price action data of a particular stock indices chart time-frame period.
The stock indices bar chart will show high price, low price, open stock indices price and close stock indices price.
The bar stock indices chart will be represented by a vertical line that represents the bar and then there will be a small dash to the left of this vertical bar showing the opening stock indices price and another small dash to the right of this vertical bar showing the closing stock indices price.
A stock indices bar will continue and start plotting from where the previous stock indices price bar left.
Stock Indices traders can also use stock indices bar charts to identify & trade stock indices technical analysis patterns.
Stock Indices traders can also use stock indices bar charts to identify stock indices trends & to draw stock indices trend lines on these stock indices bar charts.
Stock Indices Candles Charts
Stock Indices candlesticks charts are used to represent all the data of the stock indices price action movement which includes: high price, low price, open price and close price.
A stock indices candlestick has two parts the body of the stock indices candlesticks and the shadows of the stock indices trading candlestick.
The body of the stock indices candlestick shows the stock indices price action between opening stock indices price and closing stock indices price. The body of the candlesticks will have different colors depending on the direction of the stock indices price movement, blue or green candlesticks when stock indices price moves up & red stock indices candlesticks when stock indices price moves down.
The length of the body of the candlesticks will determine how much stock indices price movement there was between the opening stock indices price and closing stock indices price for a particular stock indices chart time-frame period.
The lower and upper thin lines protruding out of the candlestick body are known as shadows and the bottom and top of these shadows represent the low and high stock indices price of a particular stock indices price period.
A lot of information can be analyzed by stock indices trades from the body and the shadows of a stock indices trading candlestick.
Stock Indices candlesticks patterns is a stock indices technical analysis study that explains how to read stock indices candlesticks and how to interpret stock indices signals from these stock indices candlesticks patterns.
These stock indices candles patterns include:
- Doji Stock Indices Candlestick
- Marubozu Stock Indices Candlestick
- Hammer Stock Indices Candlestick
- Inverted hammer Stock Indices Candlestick
- Shooting Star Stock Indices Candlestick
- Piercing Line Stock Indices Candlestick
- Dark Cloud Cover Stock Indices Candlestick
- Morning Star Stock Indices Candlestick
- Evening Star Stock Indices Candlestick
- Bullish Engulfing Stock Indices Candles
- Bearish Engulfing Stock Indices Candles
Heikin Ashi Charts
Heikin-Ashi is Japanese & means average bar.
Heikin Ashi charts are used because it is easier to identify stock indices trends using Heikin Ashi Charts
Heikin-Ashi charts look like stock indices candles but are calculated using a different technique.
These Heikin Ashi candlestick stock indices price point are calculated as follows:
Opening Price - Opening price is calculated as the average of the opening and closing price of the prior candlestick
High Price - the high price of Heikin Ashi candle is selected from one of the following data points of the previous candlestick - high, opening price & closing price - depending on which has the highest value
Low Price - the low price of Heikin Ashi candle is selected from one of the following data points of the previous candlestick - low, opening price & closing price - depending on which has the lowest value
Closing Price - Closing price is calculated as the average of the opening price, high price, low price & closing price of the prior candlestick
Heikin Ashi stock indices charts generate stock indices signals which are slower as when compared to stock indices candles charts & this is because of the technique of calculation used to plot the Heikin Ashi stock indices charts.
The slower stock indices signals generated by Heikin Ashi stock indices charts can be used to trade more volatile stock indices prices because this Heikin Ashi stock indices charts delays in reacting to stock indices prices will help prevent stock indices traders from trading stock indices whipsaw signals.
Heikin Ashi stock indices charts have less stock indices whip saw trading signals because of the delay in calculation of the stock indices prices.
Renko Indices Trading Charts
Renko stock indices charts adds a square block on the stock indices chart when the stock indices price moves by a certain specified distance.
Renko charts are also used to filter out the time when the stock indices market is consolidating
When stock indices price moves by this distance the Renko charts adds another square block.
The square block will be added in direction of the stock indices price move.
Renko stock indices charts are used to spot the stock indices trends and trade these stock indices trends.
Point & Figure Stock Indices Trading Charts
The point & figure charts are used to filter out the time when the stock indices market is consolidating
Point & Figure charts are drawn with X and 0 columns which are vertical.
Point & figure charts are used to compress time using the point & figure stock indices chart representations because point & figure adds a new X or 0 vertically rather than next to the previous point & figure & only when the point & figure calculates the stock indices trend to have changed then a new vertical bar is then added to the right side of the point & figure charts.
Point & Figure stock indices charts are used to spot the stock indices trends and trade these stock indices trends.
The Six Different Types of Stock Indices Charts Used in Stock Indices Trading
