Basic Types of Price Charts
Price charts provide the fundamental building block in the analysis of market action. The use of charts and technical indicators provide the average investor with the only real edge available in trading the markets.
As you become familiar with viewing and using charts, readily identifiable patterns will become apparent that may immediately give you a notion of what is happening in the market.
See the discussion of the use of Trendlines and Three Simple Rules.
The following basic types of price charts are the most commonly used. These charts provide the "background" or "foundation" for most of the common indicators. In most cases indicators are shown superimposed on the price chart itself or in a separate chart below the price chart. Most of the analytical tools compare the action of an indicator against that of the price.
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