What is the Best Chart Type?
There are three dominant chart types when it comes to trading - line, bar and Japanese candlestick. Of course there are other types but these are used by the vast majority of traders and this is why our trading expert David Jones decided to explain them in a bit more detail.
The first and oftentimes default chart type is the line chart. Simply put it consists of a line that is formed by connecting the closing price levels for every day, hour, minute (or other selected timeframe) forming a continuous line. What price level is displayed can be changed to show the opening price, the high or the low for the day, but the default one (and widely accepted) is the closing price.
As line charts can only show one component of the price movement many traders use the bar chart, as it consists of four data points - the Open price, the Close price, the High and the Low for the time period. This chart type was widely used up until the mid-nineties and is still preferred by many.
But it is the Japanese candlestick that is considered by most to be the superior chart type. It’s essentially an upgrade on the bar chart, as it has the same four components in it but its visual representation (reminiscent of a candlestick with two wicks on both of its ends) is easier to see by the human eye and makes the process of interpreting it a bit quicker.
David also discusses the pros and cons of the three most popular chart types. You’ll be able to understand their importance for setting Stop Loss and Take Profit orders, as well as what you can discover by zooming in and out on charts.
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Пікірлер: 28
Great video. Thank you.
I much prefer renko trade bars to candlestick, works great with a moving average.... i program bar color to smi direction because it often predicts change of direction a few candless before the break.
Hey David...I feel like Im in school again...lol You make a great teacher....Very good line of videos you have made on trading tactics and strategies. Very explanatory. Thank you!
@jyotirmayeemallick4951
5 жыл бұрын
Hi I am here in India I can understand English language
@Leeav
4 жыл бұрын
Jyotirmayee Mallick cool,
These are great lessons
Very tipful video Thanks
thax sir
Please, realize changing colors of the candles, bars and others. 👏👏👏
Thanks, very helpful
@Trading212
Жыл бұрын
Glad to hear! More to come, so stay tuned 😎
Hi thanks for the video. Great quality as always. Can you please make a video about Elliott waves?
@Trading212
6 жыл бұрын
Thanks for reaching out, Ozkan. Your comment is appreciated. You can read about the Elliott Waves at www.trading212.com/en/Technical-Analysis?id=6.
for me, line is better for seeing market structure, in most cases the wicks doesnt give any helpful information, because it was something that happened on the lower time frame that is not as relevant as the open and close on the actual time frame you are watching people also get too emotional trying to interpretate wicks
@ David Jones I have been watching a lot of video's about making a account with Trading 212 but the 1 thing I have not see is how to get the lets say I put £500 in a acc with Trading 212 and I make in 1month £50 and i want to put that in my bank acc how can I do this hope you can make a KZread video on this ty
@Trading212
6 жыл бұрын
Hi there. Simply go to this link and follow the steps to withdraw funds from your Real Account: www.trading212.com/en/Withdraw-Funds. You will find details about the deposits and withdrawals at www.trading212.com/en/Frequently-asked-questions?cId=3. Please reach out to the customer care team if any questions arise: www.trading212.com/en/Contact.
Thanks 212 trade
Hi, How can I see both clandestick chart and line chart, both at the same time?
How do you get this desktop version you’re using
@jessejgay1
3 жыл бұрын
I'd like to know this too
What software is this?
@Trading212
6 жыл бұрын
Hi John, the trading app displayed in the video is Trading 212's web app. Open a free Practice Account at www.trading212.com/en/Free-FOREX-Practice-Account-GBP. There are also free native mobile apps for iOS and Android at your disposal.
@macdoj4
6 жыл бұрын
Cool. Thanks for the info!
@macdoj4
6 жыл бұрын
Are you able to trade Canadian stocks through this platform?
@Trading212
6 жыл бұрын
Yes, you can trade CFDs for stocks of Canadian companies on Trading 212. You can browse the CFDs on company stocks by countries through the trading app.
Sir can you make video about candle stick and what the upper wik and lower wik will indicates
@Trading212
6 жыл бұрын
Hi Vignesh, you can watch this video about how to read Japanese Candlestick Charts - kzread.info/dash/bejne/gXt62tJsgMzel5s.html.
a few times I repeated this question, but didn't replay from you, I ask again, in many videos you point the reference book, can I know the name of this book?