March 29, 2015

A simple chart

A picture is worth a thousand words...and this is true of any chart.

Line chart

This is the most basic chart. Take the following chart of ADANIPOWER. A simple look reveals that the stock has been in an uptrend and has minor corrections from time to time.

Line charts are plotted using the "closing" price of the stock.

The red line represents the 50 day moving average (DMA). 



Candle sticks

Candle sticks (a 300 year old Japanese technique) give more information like open, high, low and close.

Red candles means stock closed lower relative to the previous close. Green candles means stock closed higher relative to the previous close.



Learn more about candle sticks and patterns


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