Trading online: Stock exchange charts

Trading online: Stock exchange charts. Online trading is an activity that many people start as a financing project through financial instruments on the main national and international markets.

Online trading represents an activity that produces great profits, allowing all beginners and industry experts to make their own strategies to make profits in the market.

Online Trading: Stock Exchange Charts

Trading has the option of having different sectors where you can invest, for example:

Raw materials: gold, oil, metals…

Stock exchange shares

The important thing is to understand how Online Trading works, because in this way it will allow us to carry out correct actions to allow us to earn with this investment method minimizing to the maximum the negative results. It is essential to know that nobody can assure us with certainty that there is an infallible way to predict how the market will evolve, so it is advisable not to rely on 100% of the security methods because they can also make mistakes.

There are different components besides the news that influence the market and traders. It happens that many beginners do not know how to distinguish between a quality broker and end up choosing brokers with scarce qualities that offer attractive rates and bonds with inconvenient conditions.

Stock Exchange Charts

Trading Online: Stock Exchange Charts
The charts are considered the core of online trading, where a large part of the stock exchange operators, before making a decision about the market are fixed on these charts to make sure. This instrument allows to see the market trend which together with the technical analysis will help to understand the future market.

Online Trading

The stock market graphs are structured in two axes. In the vertical axis we find the price of the index of the instrument we are observing and in the horizontal axis is where you can observe the time and date.

The interesting part of the stock market charts, that is, the charts that we can use for online trading in general, is that they have different “time frames”, we can visualize each candle on a daily basis, where the candle represents the movement that the index has had during a day. you can visualize different “time frames”, in addition to the daily such as the weekly or monthly with a broader time scale.

To understand it better, if you want to move from a daily chart to a weekly chart, you can see that this the possibility of going backwards in time. The first thing we should know about stock charts is that the larger the Time Frame the further back in time we will be going, thus having the possibility of having a complete time frame that can help us analyze and see the level of prices. The Time Frame is therefore a temporal scale with which you can decide what type of visualization you want to give to the graph.

Time Frame

A candle can give us the following information:
The opening price

The maximum price level

The minimum price level

The closing price

This means that this type of stock market charts will allow you to obtain more information for the analysis of prices, unlike other charts such as the line chart that only gives you the closing data.

If we visualize only one candle, we will obtain a lot of information, it gives us the possibility to analyze everything that has happened in the day. Within the Japanese candlestick charts, you are given the option to view the information every five minutes, even in seconds.

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