How Do I Analyze Stock Indices Charts?
How Do I Read Stock Indices Charts?
In stock indices trading - the stock indices chart is the basic indices trading tool used by stock indices traders to trade the stock index market. The stock indices chart will show information about stock indices price movement - the stock indices chart will show the general direction of trading indices prices - commonly known as indices trends or trading stock indices price trends. The stock indices chart will also show the current trading stock indices price and the historical movement of stock indices chart prices.
Traders use these stock indices charts to identify where to place and open stock indices trades. From the stock indices chart the trader will analyze the stock indices price movements using indices technical indicators so as to identify and determine the direction of the trend so as to determine the indices trade to open - whether a buy or a sell indices trade.
Traders must learn how to use indices charts before they can begin trading indices.
The following are the different aspects of indices charts that a trader will need to know about stock indices charts.
Types of Indices Charts
There are three types of indices charts
Line Chart - this line stock indices chart method draws a continuous line that connects the closing trading indices prices. For example if a trader is using the 15 minutes stock indices chart then this line stock indices chart will draw a continuous line that connects closing stock indices price of the indices market after every 15 minutes.
Bar Stock Indices Chart - This bar stock indices chart use bars to represent stock indices price movements and draws OHCL - Opening indices price, High indices price, Low indices price, and Closing stock indices price for that stock indices chart time period, for example if the stock indices chart time period used is 15 minutes stock indices chart, the bar stock indices chart will represent the stock indices price data and the OHCL indices points for the `5 minutes stock indices chart.
Candle Stick Charts - These candlesticks stock indices charts are the most popular stock indices chart types as they are the most visually appealing stock indices charts and they represent the trading stock indices price movements in an easily identifiable way which clearly shows when the trading indices prices move up or when trading indices prices move down using different colors to differentiate the direction of stock indices price movement. These candlesticks stock indices chart look like a candle and they have a body that resembles the wax part of a candle and an upper and a lower poking line that resembles the wick of a candle.
Indices Chart Periods
A stock indices chart will draw indices charts based on different chart time periods - these are 1 minute stock indices chart, 5 minute stock indices chart, 15 minute stock indices chart, 1 hour stock indices chart, 4 hour stock indices chart, 1 day stock indices chart, 1week stock indices chart and 1 month stock indices chart. The stock indices chart period used to draw stock indices chart stock indices price data is also known as a indices chart timeframe, for example the 15 minute stock indices chart period is commonly referred to as the 15 minute chart by stock indices traders. This 15 minute chart timeframe will represent trading stock indices price data for the 15 minutes of indices trading, after those 15 minutes another set of trading stock indices price data will be used to draw another stock indices chart representation. For examples if a trader is using candlesticks stock indices chart, the trading stock indices price data of one indices candle will draw trading stock indices price data of that 15 minute, after those 15 minutes another indices candle will be drawn using trading stock indices price data of the next 15 minutes - when these indices candles are combined they then make a indices graph/ indices chart representation that shows the general direction of trading indices prices commonly known as the indices trend. Traders can then use this stock indices chart information to make indices trading decisions.
The most commonly used stock indices charts are candlesticks stock indices charts.
How Do I Read Indices Charts?
The candlestick charts use candlesticks that have different colors to represent the trading stock indices price move - blue indices candles show indices prices closed higher than they opened - red indices candles show indices prices closed lower than they opened. This indices candlestick color representation is then used by stock indices traders to determine when trading stock indices price has moved up or down.
The indices candlestick also show OHCL:
O - Opening Trading Indices Price
H - Highest Trading Indices Price
C - Closing Trading Indices Price
L - Lowest Trading Indices Price
These trading stock indices price points are represented using a formation which looks like a candlestick with wicks on both ends, the distance between the opening trading stock indices price and closing trading stock indices price is represented by what is referred to as body of the indices candlestick - this part resembles the wax part of a candle-stick. The high stock indices price is represented by a poking line protruding upwards - this line resembles the wick of a candlestick - the low stock indices trading price represented by a poking line extending downward - this line looks like a wick of a candle facing down.
How Do I Read Stock Indices Charts?
The Japanese stock indices candles patterns techniques also have very many candlesticks patterns which are used to trade the Indices Trading Markets. These stock indices chart patterns have different stock indices technical analysis and the most common are:
How Do I Read Indices Candles Patterns?
Stock Indices Trade Charts?
