Chart Types for Beginner Traders
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Pablo Soria de Lachica discusses chart types used by beginner traders, emphasizing their importance in decision-making for market investments. The three common chart types are bar charts, line charts, and candlestick charts, each offering different levels of detail. Bar charts show price ranges, line charts depict price changes over time, and candlestick charts provide a visually informative representation of price movements.
Chart Types for Beginner Traders
- 1. Chart Types for Beginner Traders By Pablo Soria de Lachica
- 2. Introduction • Investment executive Pablo Soria de Lachica works at Bforex as the director of business development, a position he has held since 2007. In his role at Bforex, Pablo Soria de Lachica is responsible for recruitment, daily operations, and the development and management of trading technology designed to accommodate the needs of both veteran and novice investors. Charts and graphs are frequently used to illustrate histories and trends that facilitate decisions about the market. They provide information about derivative instruments, current and past exchange rates, debts, and equity prices. There are three types of charts that are commonly used, namely the bar chart, the line chart, and the candlestick chart.
- 3. Chart Types • Bar charts are more detailed and graphic, displaying the difference in extremely high and extremely low prices during a certain time period. A large line depicts a more significant price struggle. A line chart displays price changes at predetermined time intervals in a linear format, but lacks detail about price fluctuations. Perhaps the most graphically informative and therefore popular type of chart is the candlestick chart. The colored figures resemble candles, and the extremes in price, known as the upper and lower shadows, resemble wicks. The colors identify whether the closing price was higher or lower than the opening price.