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Reading Price Charts

What are Bar Charts?

A bar chart is made of a series of vertical lines that represent each data point – the high and low for the trading period and the closing price. The close and open are represented on the vertical line by a horizontal dash. A dash on the left side of the vertical bar illustrates the opening price while a dash on the right represents the close.

 

What are Candlestick Charts?

The candle stick chart although similar to a bar chart is different in the way it is visually constructed. It has a thin vertical line showing the trading range during a period. There is a wide bar on the vertical line illustrating the difference between the open and close. It is important to understand the candlestick configuration. For days up, there are two colour constructs and for days that the price falls, there is one. The candlestick is generally white, green or clear when the price of the stock is up and closes above the opening trade. The candlestick will usually be red or black if the stock has traded down for the period. The candlestick will be black or filled with the colour that is used to indicate an up day if the stock's price has closed above the previous day’s close but below the days open (this only occurs with some chart providers – in most occasions it is one colour for up and one for down).

 

 

 

Move on to Step 3 - Module 2 > Trading Basics: Types of Markets

 

  

____Step_1____
Welcome
Binding Agreement
____Step_2____
Your Trading Business
□ Trading Styles
□ Objectives
□ Business Resources
□ Business Assets & Liabilities
____Step_3____
Market Basics
□ Stocks
□ Forex
□ Futures
□ Options
□ CFDs
Trading Basics
□ Reading Price Charts
□ Types of Markets
□ Types of Trading
□ Placing Orders
____Step_4____
Charting Basics
□ Pivot Points
□ Trend Points
□ Isolation Points
□ Real Bars
□ Summary & Test
□ Answers
Trading System Builder Tool Kit
□ Trading Rules
□ -1 Trend
□ _Moving Averages
□ _MACD
□ _Trend Lines & Channels
□ -2 Trigger
□ _Moving Averages
□ _MACD
□ _Stochastic
□ _RSI
□ _Bollinger Bands
□ _Fibonacci
□ _Support & Resistance
□ _Trend Lines
□ _Divergence
□ _Volume
□ _Price Bar Patterns
□ _Breakouts
□ _Which Triggers To Use
□ -3 Trade
□ -4 Terminate
□ _Initial Stop Loss
□ _Exit Strategy
□ -Filters
____Step_5____
Risk Management
Back Testing & Evaluation
Running The Business
Additional Tools & Resources
Resources