Charts, popular charting styles
Page 1 of 174 123451151101 ... LastLast
Results 1 to 10 of 1739

Thread: Charts, popular charting styles

  1. #1
    Super Moderator RoboForex Trader's Avatar
    Join Date
    Dec 2012
    Posts
    489
    Promo (¢)
    0
    Thumbs Up
    Received: 141
    Given: 33

    Charts, popular charting styles

    Al traders use charts. Somebody make analysis using charts, somebody follows price action, but every trader without exceptions uses charts. The most popular charting style is candlestick chart. But candlestick chart is not the only charting principle that is used by traders. There are other charts as well. In this article I will tell you about other most popular charts to help you have wider perspective about modern charting principles. Perhaps, it will be useful for somebody and help improve overall performance.

    Tables:

    Historical data is often represented in tables. Bid and ask prices are reflected there. Sometimes, last price (last price traded) is also added there. Some tables also show opening and closing price for some time period. Charts are actually built using data from tables. The minimum price fluctuation is called «tick». Ticks are used for building charts. That’s how ticks look like:

    EUR/USD tiks

    [свернуть]


    Before you go to any charts, I want every trader to remember one thing – all charts are sort of indicators. They don’t look like moving averages or Bollinger bands, but they are indicators, because they transform data flow into convenient visual way for the sake of simplicity.

    Line chart

    The lowest timeframe possible in the market is «tick chart». It’s not very useful though because it contains much ambiguous information that may be not relevant for a trader – not too many ticks can be shown on the screen of a trader. To see price that was traded on the market 1 year ago, you should go back too many ticks. Also, quantity of ticks can be overwhelming for analysis.

    EUR/USD tiks

    [свернуть]


    As you see, this chart contains just 10 minutes of information. Every 10 minutes you will see completely new data. You can though build line chart using higher timeframes, but it will not be very useful that’s why they are not very popular. In popular trading software MT4 it’s possible to see line charts with very big timeframe, up to monthly chart. In MT4 line chart is built using closing prices of the time period. On H1 line chart will be built using closing prices for every hour. In some trading platforms charts can be built using opening prices or high/low prices.

    Bar chart

    Many traders are familiar with bar charts because it is built in MT4 platform, and default settings of the platform are so that you have default bar charts after software is installed. Before candlesticks have become so popular, bar charts were commonly used in trading community. It was easy to draw and it was convenient before computers appeared. Bar charts are also used today by those who want to have more data on limited space (Bar chart consumes less space than candlestick chart). Disadvantage of bar chart is absence of colour. While on candlestick chart you can immediately see where rising and falling candlestick is, on bar chart you don’t have this opportunity.

    EUR/USD hourly chart

    [свернуть]


    «X0» Chart

    It’s also called point-figure chart. X shows growth, 0 – decline. Box allows to set point size. Recommended parameters depend on currency pair, normal size is 25 – 50 points per box. «Reverse» is parameter that shows another box when price shows momentum. For example, reverse equal to «3» means that price will go 3 boxes long, then new box will start drawing to the opposite side. Disadvantage of this chart is absence of time scale. You can attach it, but it will be useless. There is only one timeframe on this chart. To get perfect «XO» chart, you should use tick data.

    USD/JPY ХО Chart

    [свернуть]


    Renko chart

    Like XO chart, Renko charts don’t have time scale and are built from different colored blocks. Every block is equal to quantity of pips set in box. Unlike XO Charts, Renko chart is build using closing prices of given timeframe or highs/lows levels. Renko charts are very visual for identifying trend.


    EUR/USD Renko Chart

    [свернуть]


    Kagi chart

    This unconventional chart is build upon lines named «Yin» and «Yang», using closing prices for given interval. Though, Kagi chart can be built upon high/low prices like any other chart. Kagi chart is used for identifying resistance/support lines. Trends are also very visual with Kagi chart.

    • Solid line – Yang
    • Solid line – Yin


    «Yang» line draws zigzag lines in stair stepping mode. Every stair is called «shoulder». Every shoulder is always higher than previous. If next level becomes lower than previous line, chart transforms into «Yin» line and shows reversed stairs using the same principle. This stair is called «waist». Every stair is always higher than previous, if stair goes down, chart transforms into «Yang».

    EUR/USD Kagi chart

    [свернуть]


    Candlestick chart

    Japanese candlesticks are described in book Candlestick analysis by Steve Nison. For now, this is the most popular chart among traders. Literally every trading platform (that has charts) has this type of chart. Candlesticks have gained popularity because candlesticks can form plenty of combinations (formations) and patterns for technical analysis. They have only one disadvantage: to validate candlestick formations, trader should deal with closed candles. As data changes, candle can turn from black to white and vice versa. Especially it is fair for higher timeframes. Also, candles have shadows to both sides. Those shadows show high and low for the period.

    EUR/USD candlestick chart

    [свернуть]


    The most popular trading software Metatrader4 contains 3 basic types of charts: candlestick, line and bar chart. Other charts can be shown as additional indicators. In reality, there are numerous types of charts, that we might be not familiar with. Charts are indicators, they transform data flow in visual and convenient way. Chart is not a «holy grail» for a trader, it’s simply a tool, that can help trader increase the odds of profitability.

    Not allowed!

  2. #2
    Rookie Azis Muslim's Avatar
    Join Date
    Sep 2013
    Posts
    4,835
    Promo (¢)
    0
    Thumbs Up
    Received: 268
    Given: 172
    What a great information you provided here, sir. I don't know if there are a lot of chart we can use in our trading platform. I only know candlestick, line, renko and bar chart and the rests are new to me. But, I don't see any other chart such as Kagi and XO chart in my Robo MT4. I personally use only candlestick chart to determine reversal signal and line chart to draw support resistance point easily sir. I never use bar chart and don't know how to use it. I don't have any knowledge about bar chart.

    Not allowed!

  3. #3
    Registered user
    Join Date
    Aug 2013
    Location
    Male
    Posts
    1,963
    Promo (¢)
    500
    Thumbs Up
    Received: 18
    Given: 17
    This is an excellent topics regarding charting styles. I appreciate if very much. Specially I like candlesticks chart in my short term trading as it is very possible to get the clear picture of past and present market movement through this chart easily. Aside of chart I take help of some other indicators which makes me easy understanding for profitable forex trade.

    Not allowed!

  4. #4
    Registered user Nizar's Avatar
    Join Date
    Aug 2013
    Location
    Khartoum,Sudan
    Posts
    748
    Promo (¢)
    500
    Thumbs Up
    Received: 16
    Given: 24
    candle stick chart style is the most popular among forex traders while i noticed that stock market traders usually use bar charts,it is just a cultural thing as both chart types serve the same function,for me i prefer candle sticks and find them more easy to read and more representative of market conditions and movement.

    Not allowed!
    Bend your view to the charts, not the charts to your view

  5. #5
    Registered user opan's Avatar
    Join Date
    Aug 2013
    Posts
    122
    Promo (¢)
    2,340
    Thumbs Up
    Received: 3
    Given: 0
    Quote Originally Posted by Nizar View Post
    candle stick chart style is the most popular among forex traders while i noticed that stock market traders usually use bar charts,it is just a cultural thing as both chart types serve the same function,for me i prefer candle sticks and find them more easy to read and more representative of market conditions and movement.
    I also agree it is the most candlesticks can describe the movement of the price to the price, because it means we understand candlestick patterns could memahmi pattern of the market itself, so do not ever underestimate the candlestick learn uga carefully and note the trend is going, because the trend is our friend

    Not allowed!

  6. #6
    Registered user
    Join Date
    Oct 2013
    Posts
    25
    Promo (¢)
    230
    Thumbs Up
    Received: 0
    Given: 0
    For me and my trading Japanese candlesticks chat is the best trading chat i ever found on meta trader 4 but also Line chat is my first using chat which used by me long time. In Japanese candlesticks chat a trader easily analysis market movement.

    Not allowed!

  7. #7
    Banned
    Join Date
    Sep 2013
    Posts
    27,036
    Promo (¢)
    0
    Thumbs Up
    Received: 285
    Given: 50
    Apart from the fact that the candlestick trading chart is the most popular and welcomed by most forex traders, i love it personally because it works for all the trading skills that i want to do in the market. There is no pattern that i charge it of that it does not deliver better result to me, this is why i personally love it.

    Not allowed!

  8. #8
    Registered user
    Join Date
    Oct 2013
    Posts
    161
    Promo (¢)
    -375
    Thumbs Up
    Received: 3
    Given: 0
    Most of the traders like to use bar or candlestick charts. But candlestick chart is my favorite. Its easy to understand and also i think i can easily technically analyze the market. I feel comfort with it and also i know that most of the trader like to be with this. Its easy to using and understanding method makes it popular.

    Not allowed!

  9. #9
    Registered user
    Join Date
    Mar 2013
    Posts
    1,515
    Promo (¢)
    0
    Thumbs Up
    Received: 8
    Given: 1
    I do not know that there are many kinds of charts which you mention in your thread like LINE,BAR,XO,RENKO,KAGI,CANDLESTICK charts,i am only familiar with candlestick,line and bar charts and mostly uses candlestick chart for my trading because it gives me clear idea about forex market trend all the time..but now i will search more to understand the benefit's of using other charts too..

    Not allowed!

  10. #10
    Registered user
    Join Date
    Aug 2013
    Posts
    769
    Promo (¢)
    355
    Thumbs Up
    Received: 7
    Given: 4
    I also using candlestick chart. It's not only the most popular charting style but I think it's the best charting style since it's simple and it also provide highest price and the lowest level of the price from specific time frame. By using candlestick chart we can seeing market movement by time to time and se can easily make a support and resistance line based on that.

    Not allowed!

Page 1 of 174 123451151101 ... LastLast

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •