Stock Charts for Day Traders
Day trading is the most sophisticated trading method demanding advanced trading systems and intraday charts. An intraday stock chart provides graphical representation (as bars, lines or candlesticks) of market conditions like stock price, trade volume, number of trades etc. There are a number of kinds of stock charts available of which the three, time charts, tick charts and volume charts are very popular.
Time charts are the graphical representation according to time intervals. A new graphic makes its appearance after a predetermined time interval; of 1m, 5m, 15m, 1hour etc, so as the charts named – 1 minute chart, 5 minute charts etc. Tick charts are charts drawn against the trades completed. A new graphic makes its appearance after the completion of a certain number of trades, denoted in ticks like 33, 133 or 233 ticks. They are good indicators of market activity; the greater the number of bars the grater the number of trades.
Volume charts are charts drawn against the number of contracts traded. Remember a single trade can involve any number of contracts. A new graphics makes its appearance when a certain number of contracts are traded (500 or 1000). Like tick charts, they also shows market activity.
Time charts are the graphical representation according to time intervals. A new graphic makes its appearance after a predetermined time interval; of 1m, 5m, 15m, 1hour etc, so as the charts named – 1 minute chart, 5 minute charts etc. Tick charts are charts drawn against the trades completed. A new graphic makes its appearance after the completion of a certain number of trades, denoted in ticks like 33, 133 or 233 ticks. They are good indicators of market activity; the greater the number of bars the grater the number of trades.
Volume charts are charts drawn against the number of contracts traded. Remember a single trade can involve any number of contracts. A new graphics makes its appearance when a certain number of contracts are traded (500 or 1000). Like tick charts, they also shows market activity.
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