What is Stock Market Chart?

What is Stock Market Chart?

Be it a stock market chart or a technical chart, it plays a very important role in identifying the current trend and trend reversal.

Apart from this, it also plays an important role in triggering Buy and Sell signals.

Chart patterns have a specific formation, which creates a trend and trading signals in the price movement in the future through a graphical form.

If you want to know the closing price for each day’s trade of the stock, it tells you about the share prices for a specified time frame or a year.

Stock Market Chart

How to Read Stock Market Chart ?

In this section of share market chart, we will talk about types of share market chart and how to read share market chart with questions.

There are 5 types of share market charts in the stock market. which are as follows:

  • Head and Shoulder
  • Daily Bar Chart
  • line chart
  • candlestick chart
  • point and figure chart

Let us now discuss them in detail one by one.

Head and Shoulders

Head and Shoulders :-

This is a reversal chart pattern and it gives signals about the movement of securities; i.e. if it goes against the previous trend:

As the name of this chart pattern suggests, it is shaped like both the shoulders and the head of a human. This pattern is a variant of predicting the stock market to reverse a trend from a bullish to a bearish trend.

It can be either a reversal pattern or a continuation pattern.

Top: This is formed on an upward movement and indicates that the upward trend is about to end.

Bottom: This is also known as an inverse signal and the reverse in a downtrend.

Daily Bar Chart

Daily Bar Chart :-

This is the most commonly used chart by traders. It provides various important trading information about stocks and their prices. such as:

  • opening price
  • closing price
  • Highest price for the whole day
  • All day lowest price


Here, the vertical line shows the range when the horizontal line signals the left side to indicate the opening price and the right side signals the closing price.

line chart

line chart :-

This is a chart that records the closing price of the day. It is plotted on a daily basis and eventually forms a line.

Line chart is a time based chart and it is one of the easiest charts.

The line chart is formed by connecting the closing prices of each time to a single line.

It is very important to watch the trend in the long term and look for chart patterns like head and shoulders and triangles.

Candlestick Chart

Candlestick Chart :-

It shows price related data in a different format, it is divided into two parts and each price is represented by a line.

https://shareinfobazaar.com/dividend/

The thin line shows the high to low price and the real body shows a wide area which helps to calculate the difference between the opening and closing price.

Point and Figure Chart :-

This stock market chart shows the stock prices. It does not show price like time based charts.

But this chart shows ‘X’ and ‘O’ where ‘X’ about rising prices and ‘O’ for falling prices.

You can know about the price of shares by reading the 5 stock market charts mentioned here. Apart from this, you can also learn about 7 major intraday trading charts.

Charts Patterns Analysis

Charts Patterns Analysis :-

Identify the chart: Identify the chart and look at the top where you will find the ticker or symbol which is a small letter identifier of a company.

A correct symbol identification is essential for company information.

Select Time Window: This can be done on a daily, weekly, monthly or yearly basis but it can be used depending on which platform you are viewing it on.

Looking at different timescales will help in identifying long and short term trends and examining both.

Remember the price of any day and check both later and see if the price goes up or down.

Check the Summary: You should check the summary as it will give you important information of numerical values ​​from the chart which you can read quickly.

This summary at least gives you the latest price, price moving average and volume traded information.

https://shareinfobazaar.com/formula-to-become-a-millionaire/

Track Prices :-

This chart is divided into two sections Upper and Lower, which gives you an idea of ​​the prices. The upper part tracks changes in the stock’s price.

These prices are often shown with different colors such that if the stock is closed on a particular day, the marker may be black.

Whereas the price at which the stock has closed can be marked in red.

traded volume

traded volume :-

At the bottom, you will find the stock traded volume. This will help determine if there is a specific movement in the market, positive or negative, with color-coded bars.

This color code is not fixed. So it needs to be read carefully. This color shows the closing price as well as the ups and downs of the previous day’s closing price.

View Moving Average :-

This is a calculation of the average price of a stock that is continuously adjusted over time, it is an important tool in stock analysis.

In stock market charts, these are usually represented by lines running across the chart. This can help identify a trend pattern, but it may also have some gaps as it reflects past prices.

Also Read :-

https://shareinfobazaar.com/to-become-rich-you-have-to-invest-here/
https://shareinfobazaar.com/this-share-went-up-to-rs-498-directly-from-rs-5/
https://shareinfobazaar.com/golden-tips-to-earn-money-in-stock-market/

Social Media

Most Popular

Get The Latest Updates

Subscribe To Our Weekly Newsletter

No spam, notifications only about new products, updates.

Related Posts

5 Fibonacci Retracement Rules for using Operator Trader
April 12, 2024

5 Fibonacci Retracement Rules for using Operator Trader

5 Fibonacci Retracement Rules for using Operator Trader

April 12, 2024
How to Predict Market Buying and Selling Levels by using Operator’s Mind
April 11, 2024

How to Predict Market Buying and Selling Levels by using Operator’s Mind

How to Predict Market Buying and Selling Levels by using Operator’s Mind

April 11, 2024
Golden Setups for Daily Profit in Market Gap Down Open
April 10, 2024

Golden Setups for Daily Profit in Market Gap Down Open

Golden Setups for Daily Profit in Market Gap Down Open

April 10, 2024