
Introduction to using Charts in Trading
Using charts in trading offers traders a visual interface into the marketplace. Traders make use of charts in order to understand the market dynamics that are in play behind the price action. No matter what you trade, stocks, options, forex or commodities, trading without using charts is like driving blind.
Charts are relatively easy to grasp, perhaps because they are visual. However it can be misleading as most beginners in trading tend to use charts without having any basic knowledge to help them in their chart analysis. Charts do not predict the future price of the instrument, but when analyzed correctly can tell the trader a great deal on how to trade, when and what.
There are many types of charts but the most commonly used chart types are
Candlestick Chart
Line Chart
Bar...