Some traders prefer to buy and sell shares based on company and market news and after considering economic numbers. These traders are said to base their decisions on the principles of "fundamental analysis". However, there are traders who prefer to look at the technical aspect of a security, relying on charts to figure out price movements. Learning to read charts can be challenging. It requires you to know and understand market dynamics. There are several different types of charts that traders can use to evaluate the direction of a stock. Charts are used to indicate the opening and closing prices of a security, as well as its movement. However, each chart represents these differently. We'll explore the popular ones. Bar charts These are a series of solid vertical rods. Opening and closing prices are represented by dashes along the rod. A dash on the left-hand side represents the opening price, while a dash on the right denotes the closing price. The top end of the rod represents the...
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