Line Chart, Bar Chart, Or Candlesticks?

With all the different ways to view stock chartsthey make it easier to make quick decisions on
today it can get kind of confusing. Figuring outwhether the stock is bullish or bearish. But for all of
whether to use a line chart, bar chart, or candlestickthese advantages line charts make it harder to
chart is the first step.determine where to set stops. For instance you find
Let's compare them. Bar charts and candlesticks givea stock that has just hit support and you expect it
you much more information than the simple line chart.to come up.
They tell you the open and closing price along withLooking at your line chart you buy it and place a stop
the high and low of the day. Even though they both1% below support. However with a candlestick chart
give off the same information I prefer theyou are able to see the highs and lows of each day.
candlestick because it is much easier to read. If youYou can determine how wide the daily trading range
get use to the bar charts it will probably be just asis.
easy. But for new traders the candlestick charts areMaybe the stock is very volatile during the day. In
much easier to read.this case you may want to set your stop 2 or 3%
The line chart is much different than the other two.below support so you do not get kicked out of a
It plots the closing price of each day and then justtrade too early. The daily trading ranges can be
connects the dots. This type of chart weeds out allimportant to determine where to pace your stops.
of the noise that you get from both bar andThat is something very important that the line chart
candlestick graphs.does not provide.
Line charts make it easier to identify support andIn the end it is up to each individual trader to
resistance along with chart patterns. Because of thisdetermine what type of chart fits them best.