Graphic Analysis (Chartism) - Análisis Gráfico (Chartismo)
The term Chart derives from English and means graph. In the stock market and other financial market models, the chart is known as a chart where the prices of a company or any stock value listed on a financial market (currencies, bonds, indices, raw materials, etc.) are shown.
This type of graph represents the closing price between one period of time and another with a union line.
This type of graph, unlike the line graph, indicates the price path during the stipulated period, being; (opening price | closing price). It is represented by a vertical bar and two small horizontal lines, two perpendicular horizontal lines. The top of the vertical bar will mark the maximum price reached in that period while the lowest point will represent the minimum price at the time of closing. The two small horizontal lines represent the opening and closing price, the one on the left being the opening price and the one on the right being the closing price.
Ergo the vertical bar regardless of the period of the chart represents the total price movement and the small horizontal bars the opening and closing moment.
Candlestick charts share the same information as a bar chart, the only difference being the aesthetic style of each bar. Commonly, this type of chart is known as Japanese candles because it is its place of origin there.
Each candle contains; the minimum, the maximum, the closing price and the opening price of a certain period of time. The area between the opening and closing price is known as the body . In general, each candle (bullish and bearish) is represented with a different color that can be; Green and Red | Black and White. Green and / or White for the bullish run. Red and / or Black for the bearish journey.
The lines above and / or below the opening and closing prices are known as highlights or shadows.