What are the 3 Types of Stock Indices Charts?
How to Trade Live Indices Charts
There are 3 types of charts used in Indices: Line Charts, Bar Charts & Candlesticks Charts.
Line Charts - draws continuous line connecting closing indices trading prices of indices.
Indices Trading Line Charts - What are the 3 Types of Indices Charts?
Bar Charts- displayed as sequence of OHCL bars. O-H-C-L represents OPEN HIGH LOW & CLOSE. The Opening stock indices trading price is displayed as a horizontal dash on left & closing stock indices price as a horizontal dash on the right.
Indices Bar Charts - What are the 3 Types of Indices Charts?
Candle Stick Charts - these use the same stock indices trading price data as bar charts (open, high, low, and close). However, they are drawn & represented in a more visually identifiable way which looks like a candlestick with wicks on both its ends.
How to Analyze
The rectangle section is known as body.
The high and low are described as shadows & plotted as poking lines.
Candles Charts - What are the 3 Types of Indices 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 indices trading price moves up, red: when stock indices trading price moves down.
