charts in technical analysis

8
Charts in Technical Analysis Aju Joy

Upload: aju-joy

Post on 25-Jun-2015

184 views

Category:

Investor Relations


0 download

TRANSCRIPT

Page 1: Charts in technical analysis

Charts in Technical Analysis

Aju Joy

Page 2: Charts in technical analysis

Points to remember

• Charting represents a key activity in technical analysis.

• It is the security prices that are charted• Prices are volatile• There are four prices:• High, low, closing and opening price• By far closing price is the most important,

because it is used in most of the analysis

Page 3: Charts in technical analysis

Types of charts

• Line chart• Bar chart• Japanese candlestick chart

Page 4: Charts in technical analysis

Line chart

• Simplest price chart• Closing prices are charted on the

graph in a daily basis.• Each closing price would be

represented by a point on the chart.

• All these points would be connected by a straight line which would indicate the trend of the market.

Page 5: Charts in technical analysis

1-month line chart of Exxon-Mobil Corporation.

Page 6: Charts in technical analysis

Bar chart

• Most popular chart used by analysts• In this chart the highest, lowest and the

closing prices are plotted on a day to day basis.

• A bar is formed by joining the highest and lowest price of a day by a vertical line.

• The top of the bar represents highest price• The bottom bar represents the lowest price• A small horizontal hash on the right hand side

is used to represent the closing price• And the opening stock is marked by a hash on

the left hand side.

Page 7: Charts in technical analysis

6-month bar chart of Citigroup using the arithmetic scale, where the gridlines are equally spaced and

represent the same price increments.

Page 8: Charts in technical analysis