Page 52 - Trading #101 Course – Part One: Trading Basics

TRADING #101 COURSE – PART ONE: TRADING BASICS /2017-10-06

When reading technical analysis data from the markets, you will be looking at charts.
These charts are made up of data that is plotted on an x-axis and a y-axis to show the
movement of price, time, and volume. Charts illustrate how price, time, and volume look
on paper and what kind of pattern they form.

Important Note: Charts can create optical illusions, depending how they are presented.
For example, a more condensed chart, will look more severe than a chart that is
expanded. Pay attention to how you adjust your charts to be sure you are seeing the
reality of the information.

Charts come in a variety of forms, including:

• Bar chart
• Candlestick chart

Bar Chart

In a bar chart, for example, each individual price bar tells a story. One price bar
represents the interval of time that the price bar is illustrating. For example, a one-
minute price bar shows you what happened for a 60-second period.

The OHLC, or the open, high, low and close of the bar tells a complete story in a
visually concise format.

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