What are the 3 Types of Stock Indexes Charts
How to Trade Live Indices Charts
There are 3 types of charts used in Indices: Line Indices Trading Charts, Bar Indices Trading Charts and Candlesticks Indices Trading Charts.
Line Charts - plots a continuous line connecting closing indices prices of indices.
Indices Trading Line Charts - What are the 3 Types of Indices Trading Charts?
Bar Indices Trading Charts- 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 - What are the 3 Types of Indices Trading Charts?
Candlestick Indices Trading Charts - these use the same stock indexes price data as 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
The rectangle part is called the body.
The high and low are described as shadows and drawn as poking lines.
Candlesticks Indices Trading Charts - What are the 3 Types of Indices Trading Charts?
The color of the candlestick is either blue or red
- (Blue or Green Color) - Indices Prices moved up
- (Red Color) - Indices Prices moved down
Most indices trading platforms like the MT4, use colors to mark the direction. colors used are blue or green; when stock indexes price moves up, red; when stock indexes price moves down.
