CLOSE X
Algo Trading
Home

Blogs

Stock Market Blogs

What are Technical Stock Charts & their Types? July 12 2022Stock Market Education

Visit Count: 588

What are Technical Stock Charts & their Types?

Technical analysis is one of the most important aspects of the stock market. An entry at the wrong price in a stock that is performing well can lead to heavy losses. To know the right stock along with entry and exit price, you must learn technical analysis. Technical analysis is done on a stock chart where price and volume data are placed.

Technical analysis involves the reading of historical data and using different types of indicators to predict the future price movement of a stock. To become successful in technical analysis, you must understand what a chart is and how to read them.

What is Stock Chart?

A stock chart is a graphical representation of price and volume over a period. The X-axis on the graphical chart is represented by time and Y-axis shows the price movement. The time frame on the chart can vary depending on the study.

Different Types of Charts                                                       

There are many types of charts that technical analysts use while studying a stock. However, some of the commonly used charts are as follows;

· Line Charts

A line chart is a most commonly used chart. This chart represents the closing price of a stock over a specific period. The closing price on the chart is represented using a dot. The graphical representation is done by connecting the dots of different days by a line. Line charts are very helpful in understanding the trend and price movement of a stock. However, the line chart does not give detailed information about the intraday movement in the share price.

· Bar Charts

A bar chart is very similar to a line chart but it offers much more information. The bar chart has no dots but it has a vertical line with two horizontal lines protruding out from each side of the chart. The top of the vertical line represents the highest price in a day while the bottom of the vertical line is the lowest price of the stock during the day. The horizontal line towards the left side is the opening price of the stock and the horizontal line towards the right is the closing price of the stock. The bar chart helps in understanding the intraday movement of stocks.

· Candlestick Charts

Candlestick charts are one of the most widely used charts. They offer the same information as the bar chart but in a better way. A candlestick chart comprises of rectangular boxes with lines coming out from both sides. The upper line represents the high price of the stock during the day and the line at the lower end is the lowest price of the stock during the day. The rectangular block is called the body. Using candlestick charts you can very well understand the intraday volatility of the stocks.

A candlestick chart has a light and dark shade. When the closing price is higher than the opening price, the candle is of a dark shade (black). And when the opening price is higher than the closing price, the candle is of a lighter shade (white). If you notice a higher variation in the colour of candles, it means that the stock is more volatile.

· Point and Figure Charts

Before the introduction of computers for stock analysis, point and figure charts were extensively used. These days hardly a few people use it. The reason why it is not popular is that it is difficult to understand and complex. A point and figure chart’s main characteristic is to display the volatility in the stock price over a period of time.

The above mentioned are some of the different types of charts. If you want to learn technical analysis you may get in touch with Indira Securities. You may also consider opening a demat account with us. We offer a wide range of broking services at nominal rates. 

COMMENTS
Form
Categories
Blog Enquiry

Prevent Unauthorized Transactions in your demat and trading account --> Update your Mobile Number/Email id with your Depository Participant and Stock Broker. Receive alerts on your Registered Mobile for all debit and other important transactions in your demat/trading account directly from CDSL and Stock Exchanges on the same day.........issued in the interest of investors...

1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.

2. Update your Mobile Number & Email Id with your Stock Broker/ Depository Participant and receive OTP directly from Depository on your Email Id and/ or Mobile Number to create pledge.

3. Pay 20% upfront margin of the transaction value to trade in cash market segment.

4. Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued by NSE vide. Circular No. NSE/INSP/45191 dated: July 31, 2020 and NSE/INSP/45534 and BSE vide Notice No. 20200731-7, dated: July 31, 2020 and 20200831- 45 dated: August 31, 2020 and dated: August 31, 2020 and other guidelines issued from time to time in this regard.

5. Check your Securities/ MF/ Bonds in the Consolidated Account Statement issued by NSDL/ CDSL every month.

6. Risk disclosures RISK DISCLOSURES ON DERIVATIVES:

  • 9 out of 10 individual traders in equity Futures and Options Segment, incurred net losses.
  • On an average, loss makers registered net trading loss close to ₹ 50,000.
  • Over and above the net trading losses incurred, loss makers expended an additional 28% of net trading losses as transaction costs.
  • Those making net trading profits, incurred between 15% to 50% of such profits as transaction cost

Dear Investor,
As you are aware, under the rapidly evolving dynamics of financial markets, it is crucial for investors to remain updated and well-informed about various aspects of investing in securities market. In this connection, please find a link to the BSE Investor Protection Fund website where you will find some useful educative material in the form of text and videos, so as to become an informed investor.
https://www.bseipf.com/investors_education.html
We believe that an educated investor is a protected investor !!!

"As per the directives of CDSL and esteemed Exchanges, it has been made mandatory for every client to furnish their latest KYC details viz. Valid Mobile No., Email- Id & Income range on or before 31.05.2021 else your Account will be marked as Non Compliant and will be Freezed till the compliance of such requirement."
"No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."
"KYC is one time exercise while dealing in securities markets - once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary."
Dear Investor if you wish to revoke your un-executed eDis mandate, please mail us with ISIN and quantity on dp@indiratrade.com by today EOD."
REGISTRATION NOS:

INDIRA SECURITIES PVT.LTD. (SEBI REG.NO.):NSE TMID: 12866, BSE TMID: 663, CDSL DPID: 17000 SEBI REG. NO.: INZ000188930, MCX TM ID: 56470, NCDEX TM ID: 01277, CDSL REG. NO.: IN-DP-90-2015, CIN : U67120MH1996PTC160201

DISCLAIMER:

"INVESTMENT IN SECURITIES MARKET ARE SUBJECT TO MARKET RISKS, READ ALL THE RELATED DOCUMENTS CAREFULLY BEFORE INVESTING."

INVESTORS GRIEVANCE

Indrendu Joshi. Email: compliance@indiratrade.com. Call : 0731-4797275

Investor grievance complaint : complaint@indiratrade.com

INVESTOR CHARTER