Stock charts graphically depict the fluctuations of stock prices and trade volume. Charts play a pivotal role in the technical analysis process and also technical analysts use stock charts to display their analysis of stock prices movement overall. The purpose of stock charts is to showcase a simple graphical representation of stock price movement over a certain period of time. It also highlights about stock’s price over a period of time whether it’s high, low or medium in trading. The time frame usually used for creating stock charts: interday, daily, weekly, monthly, quarterly, half-yearly and annually that represents data.
Although there are different chart methods available, these are the four most popular methods of displaying stock prices namely:
Thus, there are several charting techniques available in the market today. But there is a fact that one technique is not always better than the other techniques. The choice of choosing charting methods will depend on technical analyst’s personal opinion, preference and experience altogether.
Finally, each charting technique will have its own style of representing data, interpretation, advantages and its drawbacks. So, key here is analyst’s analysis and representation of analysis by means of choosing right available charting technique overall.