Important Notice: Free Access to MCTA™ Basic (Internationally Recognized Technical Qualification Programme) - Few Seats Lefts HURRY UP!

Type of Chart

Technical analysts typically use one of the following three chart types:

1.Line Chart

2.Bar Chart

3.Candlestick chart

Now, we’ll explain each of the charts. Most charting software packages will let you analyze the price movement of any stocks or markets in these formats.…

Candlestick Chart

Candlestick charts are Japanese invention. In 18th century candlesticks were used for predicting rice prices in Japan.

Candlestick chart show the same information as a bar chart, but in a prettier, graphic format.

Candlestick bars still indicate the high-to-low range with a vertical line.…

which time frame of chart you should focus on in trading ?

INTRADAY TRADER SHORT TERM TRADER LONG TERM TRADER
Intraday traders use minute charts such as 1 to 15 minute . Short-term traders use hourly or weekly charts Long-term traders use

weekly  and daily charts.

Advised to study Price Movement  of past 2-5 Days Advised to study Price Movement  of past 2-5 Week Advised to study Price Movement  of past 1 year
Trade for Intraday, exit by market close.

Charting Analysis Summary

  1. Line charts just show closing prices
  2. Bar charts and candlestick charts show you the four prices – open, high, low and closing – for each period
  3. Candlestick charts are easier to interpret
  4. You can use arithmetic or logarithmic price scales – log is sometimes better on the long term charts
  5. Technical analysis can be applied to any timeframe of charting

Principle of Technical Analysis

There are many different types of technical traders and investors. Some rely on chart patterns, others use technical indicators and oscillators, and then there are some that use various combinations. Technical analysis uses price and volume data shown in charts to determine the possible future price of a security.…

What is Technical Analysis?

Quantitative methods for evaluating price movement and making trading decisions have become a dominant part of market analysis. At one time, the only acceptable manner of trading was by understanding the factors that make prices move and determining the extent or potential of future movement.…

Dow Theory

Technical Analysis dates back hundreds of years ago. According to historical records, a great Japanese rice trader by the name of Homma Munehisa (1724-1803) fathered candlestick charting and at today’s value, would have made over $100 billion in profits. He was considered the greatest trader in the history of the financial markets.…

Market Movements and Market Trends

The market has three movements The “main movement”, primary movement or major trend may last from less than a year to several years. It can be bullish or bearish.

The “medium swing”, secondary reaction or intermediate reaction may last from ten days to three months and generally retraces from 33% to 66% of the primary price change since the previous medium swing or start of the main movement.

Technical Indicators

Technical indicators are mathematical in nature and because of their nature they often are wrongly interpreted. However, we cannot rule out the scope of these indicators in our technical analysis while reading and drawing conclusion on the basis of charts because these indicators are highly valuable since current market data information may prove adequate to reveal some missing picture about the stock if not all.…

Types of indicator

Types of Indicator  
A. Leading Indicator
B. Lagging Indicator

Leading Indicator Lagging Indicator
Leading Indicator gives the signal before the start of a new trend or when a trend is about to terminate where reversal is most probably going to happen.