StocksResult
📝 Different Chart Types Explained
📊 Different Chart Types Explained
🌟 Why Charts Matter?
Before you buy or sell any stock — you want to know what’s happening to its price, right? 📈📉
Charts help you see the story of the stock’s price — is it going up? falling? stuck? It’s like seeing a map before starting a journey! 🗺️
🔍 1. Line Chart
✔️ Simplest Chart!
✔️ Joins daily closing prices with a line.
✔️ Shows overall trend — UP or DOWN.
Example:
Imagine drawing a line on paper showing the onion price daily — ₹10, ₹12, ₹14... 📈
✅ Easy to understand.
❌ Does not show Open, High, Low — only Close price.
Best for: Beginners, quick overview.
🔍 2. Bar Chart (OHLC Chart)
✔️ Shows Open, High, Low, Close (OHLC) prices.
✔️ Looks like a vertical line with two small horizontal sticks.
✅ Gives more detail than a line chart.
❌ Looks confusing for beginners.
Example:
Like showing:
🕘 Morning price (Open),
📈 Highest price,
📉 Lowest price,
🌇 Evening price (Close).
Best for: Detailed price study.
🔍 3. Candlestick Chart 🕯️ (Most Popular!)
✔️ Like Bar Chart but looks like a colorful candle. 🕯️
✔️ Shows Open, High, Low, Close very clearly.
✔️ Easy to see if the price went UP (Green candle) or DOWN (Red candle).
✅ Favorite of all traders!
✅ Easy to spot patterns like "Hammer", "Doji", etc.
❌ Needs some learning to understand patterns.
Example:
Just like a shopkeeper noting onion prices:
✔️ Open: ₹10
✔️ High: ₹15
✔️ Low: ₹9
✔️ Close: ₹14 — This will make a Green Candle!
Best for: Technical Analysis, Day trading, Chart patterns.
🔍 4. Heikin Ashi Chart
✔️ Modified Candlestick Chart.
✔️ Smoothens the noise — shows trends more clearly.
✅ Good for spotting trends — UP or DOWN.
❌ Less accurate for exact price.
Example: Like averaging onion prices for 2-3 days to see general price flow.
Best for: Trend traders.
🔍 5. Renko Chart
✔️ Focuses only on price change — ignores time.
✔️ Boxes (Bricks) are made when price moves by a set amount.
✅ Best to spot big trends.
❌ Can miss small price movements.
Example: Like marking a brick only when onion price changes ₹5 — not every day.
Best for: Long-term trend traders.
🔍 6. Point & Figure Chart
✔️ X for price going up.
✔️ O for price going down.
✔️ Time is ignored — only price matters.
✅ Clean chart, no noise.
❌ Not for beginners.
Example: Like noting only when onion price rises/falls ₹5 — not caring about date.
Best for: Big price movement traders.
💡 Final Thoughts:
✔️ Line Chart = Best for beginners.
✔️ Bar Chart = Shows all price points but looks technical.
✔️ Candlestick Chart = Best for traders.
✔️ Heikin Ashi = Best to see trend easily.
✔️ Renko & Point-Figure = Best for big movements, not small noise.
🎯 Simple Advice:
✔️ Start with Candlestick Chart — easy & full of details! 🕯️
✔️ Try Line Chart for simple view.
✔️ Use other charts only when you get advanced! 🚀
✅ Practice makes charts easy to read — like reading a comic book! 📚😃
🛡️ Disclaimer:
⚠️ Disclaimer: The content provided on this website is for educational and informational purposes only. It should not be considered as investment advice, stock tips, or financial recommendations. Always do your own research or consult a SEBI-registered investment advisor before making any trading or investment decisions. 📢