Chart Types: Line Charts

ESPIRITU, CHARLENE R.
MWF 2:00-3:00
CHART TYPES
Line charts are the most basic form of charts.
They are composed of a single line from left to right
that links the closing prices. Generally, only the
closing price is graphed, presented by a single
point. It is a clear as well as a simple way of getting
a general idea of the price movement’s direction in
the market, which is preferred by some traders.
While this kind of chart doesn’t provide much
insight into intraday price movements, many
traders consider the closing price to be more
important than the open, high, or low price within a
given period.
Bar charts are also referred to as open-high-low-

close (OHLC) charts. They are comprised of a
series of vertical lines that indicate the price range
during that Time Frame. Bar charts enable traders
to discover patterns more easily as they take into
account all the prices, open, high, low and close.
The opening price is the horizontal dash on the left
side of the horizontal line and the closing price is
located on the right side of the line. If the opening
price is lower than the closing price, the line is often
colored black (or green) to represent a rising
period. The opposite is true for a falling period,
which is represented by a red color.
Renko Chart is a noise-less charting technique

that concentrates merely on price movements,
completely disregarding time and the usage of
volumes. This Chart consists of white/green and
black/red bricks. These are placed depending on
whether the price rose or not compared with the
previous brick. If it did by enough value,
established by the brick size, a new one is placed.
White/Green bricks are used when the price of the
security goes up and black/red bricks when they
go down.
Another kind of chart used in the technical analysis is

the Candlestick chart, so-called because the main
component of the chart which represents prices looks
like a candlestick, with a thick ‘body’ and usually, a
line extending above and below it, called the upper
shadow and lower shadow, respectively. The top of
the upper shadow represents the high price, while the
bottom of the lower shadow shows the low price.
Patterns are formed both by the real body and the
shadows. Candlestick patterns are most useful over
short periods of time, and mostly have significance at
the top of an uptrend or the bottom of a downtrend,
when the patterns most often indicate a reversal of
the trend. The wider part of the candlestick is shown
between the opening and closing price. It is usually
colored in black/red when the security closes on a
lower price and white/green the other way around.The
ESPIRITU, CHARLENE R.
MWF 2:00-3:00
thinner parts of the candlestick are commonly referred to as the upper/lower wicks or as shadows. These show
us the highest and/or lowest prices during that time frame, compared to the closing as well as opening price.
Point & Figure Charts are very unusual as

they feature no timeline along the bottom
horizontal axis. The Chart is made up only of
price swings. The vertical price bar is
arithmetic and shows only units of price. A “O”
is plotted if the price moves down a whole
price unit (for example 50 cents). Then when
the price changes direction and starts to move
upwards an “X” is marked in each box. This
filters out smaller price moves and enables us
to focus on trend quality. Trend lines are
always plotted either horizontally or at 45-
degree angles.
Market Profile Stock Charts The letters on

the chart show time units. “A” represents the
first 30 minutes of trading, “B” represents the
second 30 minutes of trading. The point of
control is the area (price range) at which the
most trades occur during the day. The value
areas are the price range at which 70% of the
action happens. When the price is above
and below the value areas this represents a
possible ideal buying or selling point.
The price at volume chart is an exciting new

development, as instead of showing volume for
a certain time period, it shows us the volume of
trades at a specific price level. This enables us
to see at what price level most of the market
participants believe the stock is fairly priced.
EquiVolume Charts attempt to provide the

solution of Volume at Price in a different way.
Instead of plotting volume in separate bars, it is in
fact incorporated into the price bars
themselves.The wider the price bar, the more
shares were traded during that period.
High Low Close Bar Stock Chart (HLC) Using

bars is a step up from the line chart as is allows
us to plot additional useful data on the chart.
Here we have each bar representing a trading
period with the price High, Low and Close
represented. Refer to the diagram.

Chart Types: Line Charts

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ESPIRITU, CHARLENE R.

Bar charts are also referred to as open-high-low-

Renko Chart is a noise-less charting technique

Another kind of chart used in the technical analysis is

Point & Figure Charts are very unusual as

Market Profile Stock Charts The letters on

The price at volume chart is an exciting new

EquiVolume Charts attempt to provide the

High Low Close Bar Stock Chart (HLC) Using

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