Foreword
There are three dominant chart types when it comes to trading—line, bar, and candlestick. Both of these chart types have their Pros and Cons while using. In this article, I will walk you through all of them, their pros and cons, and how to read them.
What is a chart and its chart type?
Before talking about chart type, we are to know what a chart is. A chart is a tool that shows historical information of security such as the price and volume, and it helps traders visualizing the price action and time and sales. A chart type is how the market data is displayed in charts.
Bar Chart
Pros ✅: Could provide significant data for price actions
Cons❌: Easy to read when only one bar but may feel dazzled when the whole chart is using the bar chart type.
Line Chart
Pros✅: Clear while watching only the price
Cons❌: No detail provide
Candlesticks
Pros: ✅ Easy to read
✅.All detail is provided
Cons:❌ N.A.
The Best chart type
By comparing the Pros and Cons of these chart types, it is clear that using candlestick would be the best way when looking chart.
How to read candlesticks?
Open: Opening price of the timeframe
Close: Closing price of the timeframe
Low: Lowest price for the timeframe
High: Highest price for the timeframe
Final thought
We have discussed the three dominant chart types—line, bar, and candlestick within this article. Both of these chart types have their Pros and Cons while using. In contrast, the candlesticks chart type is the best within these three chart types.
[Next Lesson: Price Action and Trends.]
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