Chart Types

Most charts display price and/or volume information over time but each type of chart has a different emphasis:

• Bar Charts plot price on the vertical (y-) axis against time (hours, days, weeks or months) on the horizontal (x-) axis;
• Volume Charts plot volume against time in the same fashion;
• Candlestick Charts plot price against time, the same as bar charts, but place greater emphasis on opening and closing prices;
• Equivolume charts price on the y-axis against volume on the x-axis, supporting the view that the market runs on volume not on hours and minutes. A single day with very high volume activity can be more influential than several weeks of normal trading;
• Point & Figure Charts focus on price movements, filtering out minor fluctuations which have no effect on longer-term trends. Each column of X's records an up-trend and each column of O's a down-trend. Time is ignored on the x- and y- axis, one column may take several months to complete or a few days, depending on how rapidly price is moving.

Subscribe to our FREE trading newsletters The weekly Trading Diary offers free multiple time frame analysis of major market indices, identifying key support and resistance levels and suitable trading strategies. More than 70,000 subscribers - Read it now The monthly Trading Updates newsletter provides new articles on Trading Strategy, Trading Psychology, Money Management, Tricks of the Trade, New Indicators and the Economy. More than 90,000 subscribers - Read it now To subscribe, check the applicable checkboxes, enter your email address in the above field and click the Subscribe button. Subscribers are protected by our Privacy Policy.