How Do I Read Charts?
1. Line Bar Charts
The easiest to read of the charts is the Line Bar Chart. It simply shows a line graph of time vs. price.
2. Bar Charts
The next chart to decipher is the Bar Chart. Bar charts not only show price, but also show the entry price per period, the exit price at the end of the period and the high and low of that period. Each horizontal line represents one time period. The period is selected by you to represent 1 minute, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, a day, a week or a month.
Let’s take a closer look at one of these bars.
3. Candlestick Charts
Candlestick charts are similar to bar chart but with additional information of each bar being hollow or coloured. This is done to allow a trader to easily visualise a period bar to have moved in a positive or negative direction from its entry price.
As shown in the image below, the hollow bars are bars that have moved up. Coloured or filled bars are bars that have gone down. The lines that you see above each bar represent the high and lows.