Category: 1. Chart Types

What is Raindrop Candle? Raindrop candle charts are a recent form of a financial chart. They enable you to see how the market is doing from a unique angle. Raindrops form by using similar market data as Japanese candlesticks but add volume into the final image, presenting to you the behavior of price and volume…

What is a logarithmic scale? Logarithmic scale or logarithmic price chart, also known as log, is a type of scaling that depends on percentage. Logarithmic price chart represents the vertical spacing, along the y-axis, between two price points while corresponding to the change between those points in terms of percentage. In more simple words, a…

Different types of candlesticks representation Traders have been using candlestick patterns for years in financial trading to display on charts the underlying symbol’s price data. There are two types of candlesticks, hollow candlesticks and filled candlestick. The hollow candlesticks indicate that prices moved higher after the open. Conversely, the filled candlestick conveys that prices moved lower after…

What is the Line chart? A line chart is a graphical representation of the historical price action of an asset. This price action connects various data points with a continuous line. This is the most basic type of chart used in finance and typically only shows the closing prices of a security over time. Line charts can be…

What is the Renko? Most people believe that the Renko chart gets its name from the Japanese word for bricks, “Renga”. This is because it resembles a series of bricks. A new brick forms when the price moves a certain price amount. Also, traders can place each block at a 45-degree angle (up or down)…

What is the Point and Figure Chart? A point and figure chart construct price movements for futures, bonds, commodities, or stocks without taking into account how time passes. Some other chart types such as candlesticks mark the degree of the movement of an asset over a particular time. But P&F charts use columns made up of stacked Os or Xs, which represent a…

What is a candlestick chart? Simply put, a candlestick chart is a chart made up of individual candles, which investors use to understand price action. Candlestick price action has to do with pinpointing where the price opened and closed for that period. It also shows the price lows and highs for a particular time. Price…

What is the Kagi chart type? Kagi chart is a kind of chart that tracks the price movements of a commodity. Unlike other stock charts like the line, bar, or candlestick charts, the Kagi chart is unique. While price and time appear on traditional stock charts, with Kagi charts, only the price is important. Due to this, the Kagi…

What is the Heikin Ashi chart? The Heikin-Ashi technique filters out market noise. The Heikin-Ashi chart, developed by Munehisa Homma in the 1700s, share some characteristics with standard candlestick charts but are different based on the values used to create each candlestick. Rather than using the open, high, low, and close like standard candlestick charts, this technique uses…