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Chart

What Are Chart
A price chart is a sequence of prices plotted over a specific time frame. In statistical terms, charts are referred to as time series plots.
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Types of charts
There are three most commonly used types of charts: line chart, bar chart and candlestick chart. It is optional for a trader what chart type to use.
Line chart contains price's closing value at given time. Values are then connected in one line, which creates a picture / graph of price fluctuations.
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How to read a Chart
This is a guide that tells you, in simple understandable language, how to choose the right charts, read them correctly, and act effectively in the market from what you see on them. Probably most of you have taken a course or studied the use of charts in the past. This should add to that knowledge.
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Kinds of Trends
The trend shows a pending direction of the market movement. A trend may be:
1. Upward
2. Downward
3. Sideways, also known as a "flat market" or "trendless"
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Price Scalling
There are two methods for displaying the price scale along the y-axis: arithmetic and logarithmic. An arithmetic scale displays 10 points (or dollars) as the same vertical distance no matter what the price level. Each unit of measure is the same throughout the entire scale.
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How to Pick Time Frame
The time frame used for forming a chart depends on the compression of the data: intraday, daily, weekly, monthly, quarterly or annual data. The less compressed the data is, the more detail is displayed.
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Introduction to Chart Patterns
There are hundreds of thousands of market participants buying and selling securities for a wide variety of reasons: hope of gain, fear of loss, tax consequences, short-covering, hedging, stop-loss triggers, price target triggers, fundamental analysis, technical analysis, broker recommendations and a few dozen more.
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Two Dominant Groups
Two basic tenets of technical analysis are that prices trend and that history repeats itself. An uptrend indicates that the forces of demand (bulls) are in control and a downtrend that the forces of supply (bears) are in control.
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an Oldie but Goodie
Much of our understanding of chart patterns can be attributed to the work of Richard Schabacker. His 1932 classic, Technical Analysis and Stock Market Profits, laid the foundations for modern pattern analysis. In Technical Analysis of Stock Trends (1948), Edwards and Magee credit Schabacker for most of the concepts put forth in the first part of their book. We would also like to acknowledge Messrs. Schabacker, Edwards and Magee, and John Murphy as the driving forces behind these articles and our understanding of chart patterns.
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