Considering Charting Methods and the Role of Candlesticks
With advancements in technology and the growing availability of trading and investing resources available to traders, many options exist for the charting of securities. There are several different types of charts and dozens of variations and features to be configured on each type. It’s important that you’re clear on the options and, perhaps more importantly, why candlestick charting is at the top of the heap. This section explains.
Getting a feel for your options for charting
When it comes to alternatives to candlestick charting, the three main charting contenders are as follows:
Line charts: These charts are simple and helpful for short-term decisions, but they’re quite limited in the amount of data presented.
Bar charts: These are much more useful than line charts and are the most common, but they’re not as versatile as candlestick charts.
Point and figure charts: These are tried-and-true charting methods, and they’re great for recognizing support and resistance levels, but they’re far less dynamic than candlestick charts.
Each one of these charting methods can be used effectively to ratchet up the effectiveness of ...