Type of charts
There are various types of charts with different structures. However there are 3 main designs which we need to know.
- Bar charts.
These as the name donates are having bars donating the time period. The time period as discussed before can vary according to the period chosen.
Please find an example of the bar chart below.
In the bar chart above , one bar as an example has been encircled. As labeled
open is the bar to the left
high is the highest point
closing is the bar on the right
low is the lowest point
This becomes more clear when we see each bar individually as above.
Now the bar charts are the oldest form of chart depiction even older than the now very popular candle stick charts. Which type of charts you use is a matter of preference.
Below are some forms of bar patterns which were widely used and still used by some old timers
In an upday pattern the high and the low of the present bar is higher than the previous bar.
In a down day the high and low of the present bar is lower than the previous bar
In the inside pattern the high of the present bar is lower than the previous high and the low of the present bar is higher than the previous low, then it is called a ‘inside day’
In the ‘out side’ day pattern the high of the present bar is higher and low is lower than the previous bar.
This is the simplest . a single line passes through the closing of each time period chosen.