What is the Best Chart Type?

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There are 3 leading graph kinds when it comes to trading – line, bar and also Japanese candlestick. Of course there are various other types however these are utilized by the large majority of traders and also this is why our trading expert David Jones determined to discuss them in a bit more information.

The first and also oftentimes default chart type is the line chart. Basically it consists of a line that is developed by connecting the closing rate levels for every single day, hr, minute (or various other picked timeframe) developing a continuous line. What cost degree is displayed can be changed to show the opening cost, the high or the reduced for the day, yet the default one (and also widely accepted) is the closing cost.

As line graphes can only show one element of the rate motion lots of investors make use of bench graph, as it contains four information points– the Open cost, the Close price, the High and also the Low for the time duration. This graph type was extensively used up till the mid-nineties and also is still liked by several.

But it is the Japanese candle holder that is taken into consideration by most to be the exceptional chart type. It's essentially an upgrade on the bar chart, as it has the very same four parts in it yet its visual representation (similar to a candle holder with two wicks on both of its ends) is simpler to see by the human eye as well as makes the process of interpreting it a bit quicker.

David additionally goes over the advantages and disadvantages of the three most prominent graph kinds. You'll have the ability to understand their relevance for establishing Stop Loss as well as Take Earnings orders, in addition to what you can uncover by focusing and also out on charts.

At Trading 212 we give an execution only solution. This video clip must not be taken as investment guidance. Investments can fall as well as climb. Capital in danger. CFDs are greater threat due to leverage.

I show You how I made $1,006 from $100, then $257,000 from $1,006 with Bitcoin and cryptocurrencies!

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20 Thoughts to “What is the Best Chart Type?”

  1. Nano

    @ David Jones I have been watching a lot of video’s about making a account with Trading 212 but the 1 thing I have not see is how to get the lets say I put £500 in a acc with Trading 212 and I make in 1month £50 and i want to put that in my bank acc how can I do this hope you can make a YouTube video on this ty

    1. Trading 212

      Hi there. Simply go to this link and follow the steps to withdraw funds from your Real Account: http://www.trading212.com/en/Withdraw-Funds. You will find details about the deposits and withdrawals at http://www.trading212.com/en/Frequently-asked-questions?cId=3. Please reach out to the customer care team if any questions arise: http://www.trading212.com/en/Contact.

  2. Sweetmboy Kanteh

    Thanks

  3. Енисей 2009

    Please, realize changing colors of the candles, bars and others. 👏👏👏

  4. Ozkan B

    Hi thanks for the video. Great quality as always. Can you please make a video about Elliott waves?

    1. Trading 212

      Thanks for reaching out, Ozkan. Your comment is appreciated. You can read about the Elliott Waves at http://www.trading212.com/en/Technical-Analysis?id=6.

  5. Mike Parker

    I much prefer renko trade bars to candlestick, works great with a moving average…. i program bar color to smi direction because it often predicts change of direction a few candless before the break.

  6. Mr b r

    Is there a way to simplify what a share will cost you so e.g 20 shares at 1277.37 thanks

    1. Trading 212

      You can use the margin and swap details (FX and CFDs) / Commissions (Equities) feature in Trading 212’s trading app.

  7. Maj Wor

    Hey David…I feel like Im in school again…lol You make a great teacher….Very good line of videos you have made on trading tactics and strategies. Very explanatory. Thank you!

    1. Jyotirmayee Mallick

      Hi I am here in India I can understand English language

  8. John MacDonald

    What software is this?

    1. Trading 212

      Hi John, the trading app displayed in the video is Trading 212’s web app. Open a free Practice Account at http://www.trading212.com/en/Free-FOREX-Practice-Account-GBP. There are also free native mobile apps for iOS and Android at your disposal.

    2. John MacDonald

      Cool. Thanks for the info!

    3. John MacDonald

      Are you able to trade Canadian stocks through this platform?

    4. Trading 212

      Yes, you can trade CFDs for stocks of Canadian companies on Trading 212. You can browse the CFDs on company stocks by countries through the trading app.

  9. Vignesh Kumar

    Sir can you make video about candle stick and what the upper wik and lower wik will indicates

    1. Trading 212

      Hi Vignesh, you can watch this video about how to read Japanese Candlestick Charts – https://youtu.be/OGFxp3Pixg8.

  10. Victor Poulin

    Great video. Thank you.

  11. Ibrahim Hussein

    Thanks 212 trade

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