Charting In Share Market


If you want to learn the technical analysis in the share market then you should understand the chart first. Therefore this resource contains information about the Charts in Share Market

In the technical analysis there are many charts. Then you see the many charts but if you donot know about the chart then you see the charts then you can not understand about then read this resource for fundamental of the charts of Share Market. If you ask any question What is Foundation of Share Market?
Answer is come out Charting is one of the best foundation of technical anaylsis. There are charts are objective and don't lie. A chart is the representation of a stock's demand and supply over a period of time. Here time can be taken into minutes, hours, days, weeks, month etc.

In bar chart high and low of the price range of any time is recorded as vertical bar where top is highset price and bottom is the lowest price. These charts are drawn into the graph paper like this way- x axis reprsent the time and y axis represent the price. If you get number of bars over lead time and it forms the one typical pattern .These pattern uses chartists and make use of in forecasting future trends and prices.

In charts, there are three paramters are very important they are time, price and resulant pattern . Stocks in share market moves in cycle.

How Charts Are Formed?


If you want to analysis the charts there are important to understand the four types of prices. These prices are used to form the charts.

Types of four Prices
1.Open Price
2.Low Price
3.High Price
4.Close Price

When high prices reflect the strength and power of the bulls. When low prices show the strengh of the bear, while closing prices show the mood of the professionals.

Types of Charts


In the technical analysis there are different charts are present. Charts are like that:-
1.Line Charts
2.Bar Charts
3.Candlestick Charts etc.

These charts are very popular . These methods are also popular.

Line Charts


This charts are plotting only of the closed price of the day. Some are taken the closing prices. They are tell these are most important prices. These charts are sometimes only closing data avaible for certain indicades, thinly traded stocks and intraday prices. Line Charts are very difficult to read or know.

Bar Charts


One of the best and most popular charts method is bar chart method. this chart plotted using four prices. These uses the close price, open price, high price, low price. in the weekly charts would have bar for each week based on Friday's close and high and low for that week. Whether or not a bar chart includes the opening price depends on thee data is available.

Candlestick Charts


Candlestick charts are very old that created about 300 years ago by rice traders in Japan. And these are popular in resent years. In candlestick charts open, high, low and close all are requried. Candlestick charts are very easy to read. in this method many traders and investors are belive. the first pre-requisite for charts analysis is the use of your visual faculty.

You should first train your eyes.....!


Note
If you want to further detail about Share Market then read my(Nikhil Bille) post on www.maharashtraspider.com


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