1
Know the market: how to read and construct charts
What topics are covered in this chapter?
Technical analysis is defined as the in-depth study of the behaviour of market prices on charts and it begins with the different types of chart:
- line
- bar
- candlestick
- point and figure
- kagi
- volume
- equivolume
- equivolume with closing price
What are the objectives?
- To know how to construct line, bar and candlestick charts.
- To read volume charts and understand the relationship between price and volume.
- To know what point-and-figure, kagi and equivolume charts are.
- To read and interpret your own chart for your own trading purposes.
- To understand what technical analysis is all about and the basic principles underlying the study of technical analysis. ...