Technical Analysis: The Complete Resource for Financial Market Technicians

Chapter 11. History and Construction of Charts

Chapter Objectives

By the end of this chapter, you should be familiar with

• The advantages of presenting price information in a picture, or chart, format

• The construction of line charts

• The construction of bar charts

• The construction of candlestick charts

• The construction of point–and–figure charts

• The differences between arithmetic and logarithmic scales

“A chart is like a cat’s whiskers. A cat’s whiskers tell the cat which way the mouse will turn and thus which way to pounce. The mouse doesn’t think about which way it will turn, but the cat must anticipate that direction. Likewise, the market doesn’t know which way it will turn, but the speculator must anticipate that turn regardless. He uses a chart as ...