Using helping tools more efficiently is a smart way to maximize your chances for a successful trade
This type of chart indicates the basic price movement of a certain market over a given period of time. The Line chart also recognizes technical patterns, and this is why they are so popular among the starters.
Another type of chart is the Bar Chart. It gives you the opening and closing prices as well, but also the highs and lows for a specific period of time. At the bottom of the bar, you can follow the lowest traded price for the period, and the highest price is indicated at the top. Horizontal marks draw the opening and closing prices to the left and right of the vertical bar. There bar charts are two types. You have the bull chart, which shows rising tendencies, and the bear chart – the falling ones. They provide you with more information about trading over a specific period of time, but this chart is more complicated than the Line chart, so if you are new to trading, it would be a bit harder for you to find patterns.
Probably the most common type of chart is the Candlestick chart. It represents a chart composed of individual candles that you use to follow and analyze the stock price movement. Although here, you have more components. There are four indicators showing where the price opened for a period, where the price closed for a period, and the prices’ highs and lows, so basically, it combines the previous two charts.
You can use candlestick charts in many ways. The method you choose depends on your trading style and preferences.
How important is chart-reading?
Chart-reading is probably the most important trading skill you have to master. As an individual trader, your main focus is to buy stocks that the big investors are buying heavily, respectively, to avoid stocks they are selling. And here is where charts come to the rescue. It’s easier to find a pattern when you know what you are looking for.
It is worth the effort to find the most suitable charts for you in order to save time, which is one of the most valuable assets in trading – market timing.
Please be advised that the aforementioned content is part of marketing communication and does not constitute independent advice or research. It is disclosed for general information purposes only, irrespective of the fact that it may include an opinion. It is not legal, financial investment advice, and the client should not rely on the content and any opinion derived from this material. Toroinvest cannot guarantee the accuracy and completeness of the content provided in this section. The source of information is based on probability analysis and algorithms, which collect data from different sources. All the information presented in this section is indicative and subject to change without notice and may be out of date at any given time. Toroinvest is not responsible for any loss that may occur due to any trading decision derived from information derived from this analysis and is not providing personal or generic recommendations to any client in respect of one or more transactions relating to financial instruments. This information is not presented as suitable for clients and does not consider the circumstances of any client. Please be further advised that the past performance is not a reliable indicator of future performance, therefore, the information presented on the charts cannot guarantee that the client’s trades based on that information will be successful, and the client may use the information on the chart at his/her own risk.