| Stock exchange charts are mainly used by technical | | | | each day or week of trading as one point. Price |
| analysts to study securities and predict the future | | | | Activity charts, on the other hand, represent the |
| movements of stock prices. Aside from this, these | | | | number of shares traded everyday. They keep tabs |
| charts can also be used to represent stock price | | | | of the estimated volume data at each price level and |
| movements over a period of time, regardless of | | | | represent them in color-code form. |
| whether the information will be used to predict future | | | | Main Functions |
| market trends or merely to study the status of | | | | Charts are used by technical analysts to identify |
| one's investments. | | | | trends in the stock market. The information they |
| Types Of Stock Exchange Charts | | | | derive from these charts is then used to predict the |
| There are several types of stock charts. The most | | | | future movement of prices to guide them in their |
| popular among these is the bar chart. This type of | | | | investment decisions. In some of the biggest |
| chart can display large amounts of data and can | | | | exchanges, like the Toronto Stock Exchange and the |
| provide more details compared with other charts. It | | | | American Stock Exchange, technical analysis and |
| can represent daily or weekly market data, | | | | stock charts are favored over fundamental analysis. |
| depending on the need of the analyst. Bar charts | | | | Despite traders' reliance on stock charts and technical |
| require the high, low and close data to form the price | | | | analysis, some members of the academia consider |
| plot. | | | | the practice as plain guessing, arguing that one |
| One of the simpler types of stock chart is the line | | | | cannot predict the future movement of the market |
| chart. This doesn't offer as much detail as the bar | | | | based on past data. In response, some analysts and |
| chart, but it has less clutter and is more useful to | | | | stock traders argue that technical analysis is not so |
| traders or investors who prefer a scaled-down | | | | much as predicting future trends, but more on |
| representation of stock movements. Line charts are | | | | identifying opportunities that particular market data |
| favored by traders and investors who are more | | | | may present. |
| focused on the closing level than other market data. | | | | Stock exchange charts have been widely used by |
| These charts are also used when open, high and low | | | | traders, analysts and investors despite some |
| data are not available. | | | | academicians' claim that they are unreliable. Whichever |
| Another type is the point and figure. This chart is | | | | way the debate goes, there is no denying that chart |
| based solely on price movement and does not | | | | analysis or technical analysis has already cemented its |
| represent time. Regardless of the level of price | | | | position as one of the better known tactics in |
| movement, the point and figure chart represents | | | | studying the financial markets. |