Line chart
by PRASHANT SHAH -
Closing price is the last traded price of the session. When you check the position of your portfolio when the market is open, the price that you see and evaluate your portfolio is known as CMP (current market price). When market closes, the last traded price is considered as a closing price. But when we ... Read more
Bar chart
by PRASHANT SHAH -
You may recall that the line chart connects a single price (closing price) to plot the chart. We discussed about four prices that we get for each session: Open, High, Low and Close. Instead of only considering closing price of a particular session, all prices of the session can be plotted in the format of ... Read more
Candlestick chart
by PRASHANT SHAH -
Candlestick charts are probably one of the most popular and widely followed charting method. It is considered to be among the oldest Japanese charting method. The early form of candlestick chart patterns was explained by Homma Munehisa in his in book titled The Fountain of Gold – The Three Monkey Record of Money. This book ... Read more
More on Candlestick chart
by PRASHANT SHAH -
As discussed earlier, two very important properties of a candlestick charts are: Body and shadow. In fact, that’s a major difference between bar and candlestick chart. The body and shadows are formed on the basis on the sequence of open, high, low and close price in the session. The candlestick patterns tell us what happened ... Read more
Point & Figure Chart
by PRASHANT SHAH -
My belief on technical analysis became extremely strong in 2008. It was a fruitful year for me while others in my circle were blaming subprime, Lehman brothers & severe market fall. I learned from my 2007 experience of taking risk management lightly and followed price action with discipline. I witnessed the strength of price action ... Read more
Renko chart
by PRASHANT SHAH -
Renko is another charting method that belongs to the “noiseless” category, i.e. a chart which is free of relatively minor price moves. Renko charts have their origins in Japan where they were used during the 19th century. They were introduced to the rest of the world by Steven Nison who discussed this methodology in his ... Read more
