Types of Charts

Line Chart
Candle Stick Chart

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 Line Chart
Line Chart is the simplest form of charting. It
is formed by connecting the closing prices
over a set period of time. However, line chart
does not tell on which price the time period
opened or how big the movement was.

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Line Chart

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Candlestick
Candlestick

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 Candlestick
• Candlesticks are formed using the open, high, low and close.
• If the close is above the open, then a hollow candlestick
(usually displayed as white) is drawn.
• If the close is below the open, then a filled candlestick (usually
displayed as black) is drawn.
• The hollow or filled section of the candlestick is called the
“real body” or body.
• The thin lines poking above and below the body display the
high/low range and are called shadows.
• The top of the upper shadow is the “high”.
• The bottom of the lower shadow is the “low”.

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 Head
Close Open

Real Body

Open Close
Tail
Low Low
Bullish Candle Bearish Candle

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What Candlesticks Don't Tell ?

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Marubozu

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 Dragon Fly and Gravestone Doji
• Dragon fly doji • Gravestone doji

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Hammer and Hanging Man

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Hammer and Hanging Man

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Hammer and Hanging Man

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Inverted Hammer and Shooting Star

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Inverted Hammer and Shooting Star

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Inverted Hammer and Shooting Star

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Doji
A single candlestick that indicates indecision -
(1) The opening price and the closing price are almost the same. This is
depicted by the horizontal line.
(2) There is an upper tail/shadow and lower tail/shadow This is depicted by
the vertical line.
(3) Most meaningful when it is displayed as part of a candlestick pattern.

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Gravestone doji
A single candlestick - bearish doji
(1) Price opens at the low of the session, has a large rally during the
session and closes at the low of the session.
(2) There is a long upper tail and no lower tail.
(3) Most meaningful when it is displayed in an uptrend where bullish
candlesticks precede it.

Dragonfly Doji
A single candlestick - bullish doji
(1) Price opens at the high of the session, has a large decline during the
session and then price closes at the high of the session.
(2) There is a long lower tail and no upper tail.
(3) Most meaningful when it is displayed in a downtrend where bearish
candlesticks precede it.

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Hammer
A single candlestick signal that needs bullish follow up –
(1) Definable downtrend in progress.
(2) Tail of candlestick is at least twice the length of the body of this
candlestick.
(3) the candlestick following the hammer candlestick needs to be bullish or
white or price needs to be closing at higher levels above the hammer
candlestick to indicate buying activity.

Shooting Star
A single candlestick signal that needs bearish followup –
(1) Definable uptrend in progress
(2) The tail is above the body of the candlestick and the tail is at least twice
the length of the body of the candlestick.
(3) Open and close are near the same level indicating indecision.
(4) The candlestick following the shooting star candlestick needs to be
bearish or black or price needs to be closing at lower levels below the
shooting star candlestick to indicate selling activity.
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