How Do You Analyze Stock Indices Charts?
How Do I Trade Indices Charts?
In indices - the stock indices chart is the basic indices tool used by stock indices traders to trade the stock index market. The indices chart will show information about stock indices price movement - the stock indices chart will show the general direction of indices prices - commonly known as indices trends or stock indices price trends. The indices chart will also show the current stock indices price and the historical movement of indices chart prices.
Traders use these 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 indices charts.
Types of Indices Charts
There are three types of indices charts
Line Stock Indices Chart - this line chart method draws a continuous line that connects the closing indices prices. For example if a trader is using the 15 minutes trading chart then this line chart will draw a continuous line that connects closing stock indices price of the indices market after every 15 minutes.
Bar Chart - This bar 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 indices chart time period, for example if the stock indices chart time period used is 15 minutes chart, the bar chart will represent the stock indices price data and the OHCL indices points for the `5 minutes chart.
Candle Stick Charts - These candlesticks charts are the most popular indices chart types as they are the most visually appealing indices charts and they represent the stock indices price movements in an easily identifiable way which clearly shows when the prices move up or when prices move down using different colors to differentiate the direction of stock indices price movement. These indices candles trading 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.
Stock Indices Chart Periods
A indices chart will draw indices charts based on different chart time periods - these are 1 minute chart, 5 minute chart, 15 minute chart, 1 hour indices chart, 4 hour indices chart, 1 day indices chart, 1week indices chart and 1 month indices chart. The indices chart period used to draw indices chart stock indices price data is also known as a indices chart timeframe, for example the 15 minute chart period is commonly referred to as the 15 minute chart by stock indices traders. This 15 minute chart timeframe will represent stock indices price data for the 15 minutes of indices , after those 15 minutes another set of stock indices price data will be used to draw another indices chart representation. For examples if a trader is using candles chart, the stock indices price data of one indices candle will draw stock indices price data of that 15 minute, after those 15 minutes another indices candle will be drawn using 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 indices prices commonly known as the stock indices trend. Traders can then use this indices chart information to make indices trading decisions.
The most commonly used indices charts are candles charts.
How Do You Interpret Indices Charts?
The indices candle trading charts use candlesticks that have different colors to represent the 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 stock indices price has moved up or down.
The indices candlestick also show OHCL:
O - Opening Indices Price
H - Highest Indices Price
C - Closing Indices Price
L - Lowest Indices Price
These stock indices price points are represented using a formation which looks like a candlestick with wicks on both ends, the distance between the opening stock indices price and closing 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.
Read Indices Charts
The Japanese stock indices candles patterns techniques also have very many candlesticks patterns which are used to trade the Indices Markets. These stock indices chart patterns have different technical analysis & most common are:
Read Indices Candles Patterns
How Do I Interpret Indices Charts? - How Do You Analyze Stock Indices Charts? - How to Read Indices Charts - How Do I Trade Indices Charts?
