Types of charts

Hi everyone,

There are so many charts out there.How do we know which one to trade?

For example there are OHLC bar ,candlestick,tick,momentum,range,etc charts.
So which one to choose or is there a need to change?

Any advice would help.

Hello asamrat,

It doesn’t really matter which one you choose as long as you understand what it is. For example both the OHLC bar and candlestick charts contain pretty much the same information in every individual element. I prefer candlesticks myself as I find them more immediately informative in the visual sense.

It’s probably best to view a chart using all the different types of price representation (one at a time). See which one gives you the best and clearest picture of what price has done and is doing, and perhaps what it may be about to do :slight_smile:

Best thing is to just plunge in and try them all. My guess is like most traders these days you will settle on candlesticks.

All the best with it,

Erron

A chart can take a large variety of forms, however there are common features that provide the chart with its ability to extract meaning from data.

Typically the data in a chart is represented graphically, since humans are generally able to infer meaning from pictures quicker than from text. Text is generally used only to annotate the data.

Thanks alot for all your help guys.It’s really helping me on with the progress of learning.Its just that there is so much information out there that you get confused.I also came across this video that made me really wonder, can there be such charts out there.The price data was very clean.

Give me your comments and opinions on it.

MR Charts Vs Time Frame Charts - Rishi Patel - YouTube!

It doesn’t matter which type of chart you are using at the beginner stage, at this level candlestick seems to be easy to understand and work with.But when you start getting an idea about the other charts then you can understand which type of chart software is used for what purpose.