Costs and margins
Find out how analysts use charts to study investor behaviour and understand patterns in the market. Learn to use the different charts available to you and identify price patterns as they form.
|Introduction||Popular charts||Support and resistance||Trends|
|What is technical analysis?Technical vs fundamental analysis||Line chartsBar chartsCandlestick charts||IntroductionThe bears and the bullsHow a sideways trend changes to an uptrendConditions for a new level of support||The concept of a trendPrice patternsDouble tops and bottomsTriple topsTriple bottomsHead and shouldersTrading with charts|
Line charts show a single data point for each day, rather than the high/low range. A line joins together these consecutive data points.
The daily line chart is perhaps the simplest chart format you’ll find, as it displays only the market’s closing price.
Bar charts use vertical bars to show the full price range for each day. If you want to take a longer term view, you can normally change the scale to weekly or monthly bars. Or for a shorter term view, intraday charts such as hourly or five minutes.
The left-hand notch shows you the opening price that day, and the right-hand notch shows you the closing price.
Candlestick charts use the same data as bar charts but represent the information slightly differently. Traditionally, candlesticks are shown in black and white, but many charts use colours instead.