Each candlestick consists of the “body” created by open and closing prices and the “wicks” that show high and low prices for each period. Perhaps the most popular type, candlestick chart shows open, high, low and closing prices during the set period of time as well.The vertical line is created by high and low prices, the dash on the left shows the open price and the dash on the right represents the close price.

On the bar chart you can observe open, high, low and closing prices for each period of time.

Line chart is a simple and basic type that only shows closing prices.

All three are based on the same data but display them in different ways. In almost any trading platform you will find candlestick, bar and line chart types. ChartsĪ chart is a graphic representation of how the price changes within the set period of time. Knowing the strategies basics, one can likely find oneself able to implement some of the key elements into a self-designed strategy.

Analysts employ various tools to identify levels of support and resistance, breakouts and breakdowns, trends and trading ranges. Technical analysis is a method of price forecasting that involves pattern recognition on a chart.

Technical tools for data analysis