How to study different financial graphs

Financial graph or investment graph is constructed by the statistics of the stock exchange. A graph usually tells the concise and clear story of the stock. There are many investment graphs are those; bar graph, line graph, candlestick graph, point and figure graphs.

Line graph

It is the most basic graph, as it is easy to read and to prepare. It consists of a line drawn by joining the point value over the time. It is the basic chart, and it is most preferable to fresh traders. It generally provides the data of stock as daily high and daily low.

70trades

Bar graph

This graph is the extension of the line graph as it provides the data like opening and closing price of the stock. The vertical line provides the data point of highs and lows data of the stock. The horizontal line represents the day’s open and close points. The open price of the stock is indicated by left horizontal line and that of the closing price on the left side. If the open price is lower than the close price, then the bar will be shaded white, representing an up period for the stock, which means it has gained value. If the close price is lower than the open price, then a bar that is colored red signals that the stock has gone down in value over that period.

70trades

Candlestick graph

It is similar to the bar graph, having little change in this graph. The difference between the bar graph and candlestick graph is that, this graph varies the length of the vertical bar as according to the difference between the open and close price of the stock. If the width of vertical length is high, then higher is the difference between open and close prices.

Figure or point graph

capture

This is used by old technical stock traders. This graph consists of the X’s and the O’s combination. The Xs represent upward price trends and the Os represent downward price trends. There are also numbers and letters in the chart; these represent months, and give investors an idea of the date.


Author: Editorial staff of 70trades reviews blog 

Advertisements