The CleanFinancial guide to charts.
Software with Live Trading Charts
Video Guide to Charts - Creating Alerts
The following is a video on creating price, trendline and technical analysis alerts.
For more video chart guides see:
Candlestick Charts History
Candlestick charts are said to have been developed in the 1700s by Japanese rice trader Homma Munehisa. The charts gave Munehisa an overview of the opening, high, low, and closing market prices.
This method of charting prices proved to be particularly interesting, due to the ability to display five data points instead of one. The method was picked up by Charles Dow circa 1900 and remains in use by today’s financial market traders
Example Stock Market Trading Chart
Example Forex Trading Chart
Example Commodities Trading Chart
Trading Chart Explained - Candlestick Charts
- Candlestick Charts can often be set to focus on your preferred time period eg: tick-by-tick, 1 minute, 5 minutes, 10 minutes, 15 minutes, 30 minutes, 1 hour, daily and weekly. There are sometimes other options eg 'monthly' with BetOnMarkets or '2 minute' and '3 minute' periods with Financial Spreads
- If you select ‘1 minute’, then a candle represents 1 minute, if you select your time period as 1 hour, then the candlestick represents 1 hour
- Candlesticks are normally composed of a body and an upper and lower shadow (or wick)
- The ends of the wick show the highest and lowest traded prices of the market during the time period represented
- The body illustrates the opening and closing prices
- If the market is moving up then the body is shown in one particular colour, in this case, Green. The opening price is at the bottom of the body. The closing price is at the top of the body
- If the market is moving down then the body is shown in another colour, in this case, Red. The opening price is at the top of the body. The closing price is at the bottom of the body
- A candlestick need not have either a body or a wick
Support and Resistance Level Basics
Support levels occur when the market consensus is that the price will not move lower. It is the point where buyers outnumber sellers
Resistance levels occur when the market consensus is that the price will not move higher. It is the point where sellers outnumber buyers.
The penetration of a support or resistance level indicates a change in investor expectations.
Indices, Equities, Commodities etc can remain in a ‘Range’ for long periods of time and bounce between Support and Resistance.
When a market breaks out of a range the previous ‘resistance’ now becomes a ‘support’ and vice versa.
Financial Fixed Odds Charts
Note that you can also get Financial Fixed Odds charts with BetOnMarkets, click here to see the live BetOnMarkets chart.
Risk Warning: Spread betting and CFD trading carry a high level of risk to your capital and you may lose more than your initial investment. Spread betting and CFD trading may not be suitable for all investors. Only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved and seek independent financial advice where necessary
Under no circumstances are the comments and the information provided herein to be considered an offer or solicitation to invest and nothing herein should be construed as investment advice and neither Clean Financial nor any contributing company or author accepts any responsibility for any use that may be made of them. The information provided is believed to be accurate at the date the information is produced.
'Trading Charts' edited by DB, updated 20-May-13
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