Trading Charts – the most important chart types for successful day trading

Understand and analyze price developments with Trading Charts

Trading charts are graphical representations of the price curves of securities. They illustrate the price development not only of equities, but also of bonds, commodities, currencies – i.e. Forex and other assets. For example, Renko Charts or Heikin-Ashi Trading Charts, etc. allow you to track real-time prices within your account and operate them based on its analysis and trading – all online and live. Trading charts exist in a variety of different variants, which may contain more or less information. The range ranges from very simple line charts to bar and candlestick charts to very complex professional charts. TradersClub24 offers club members all marketable trading charts and supports both trading beginners and trading professionals to implement their individual trading strategies quickly and successfully with specially developed tools and other indicators.

The application of trading charts

Trading charts are a good orientation for the purchase and sale of securities. If you want to trade in securities, you can basically use two different methods of analysis: fundamental analysis and chart analysis. In the former, assets are examined for their value indicators, such as balance sheets and profit and loss accounts. The fundamental analysis therefore requires a relatively high level of economic know-how and, above all, costs a great deal of time, which is why it is primarily used by institutional traders.

Chart analysis is more popular with many private investors. Not only is it easier to apply than fundamental analysis, but in many cases it also promises faster successes. The basic concept of the chart analysis is the assumption that there is information in the historical prices of securities that allows conclusions to be drawn about their future price development.

The most important trading charts

The simplest type of trading chart is the line chart. It only displays the closing prices of a security over time. The line chart is created by combining these closing prices over time, resulting in a continuous line that usually has a typical zigzag pattern for most securities, reflecting the ups and downs of the prices.

The bar chart already contains much more information and trends and is therefore a little more difficult to read. In addition to the closing price, the bar chart also includes the opening price as well as the high and low price of a security. The top of the bar symbolizes the maximum price and the lower edge symbolizes the lowest price. The opening price is represented by a small horizontal line to the left of the bar and the closing price by a horizontal line to the right. For faster readability of a bar chart, the bar is usually colored green when the price rises and red when the price falls.

The Candlestick charts is a graphical variation of the bar chart. It contains the same information, but it is presented differently. The body of the candlestick is determined by the height of the opening price and the closing price. If the closing price is above the opening price, the candlestick is displayed in green to the trader. If the closing price is below the opening price, the candles are colored red. The maximum price of the security is indicated to the trader by the so-called “wick”, a vertical line at the top of the candlestick body. Similarly, the low price is represented by the so-called “lunte”, a vertical line at the bottom of the candlestick body.

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Club members benefit from special trading charts templates

Instead of just paying attention to bar, line or candlestick charts, professionals also work with indicators and trend lines. This additional information is in order to be able to make better trading decisions about boarding and disembarking. Over the years, we have developed various templates in which we have created combinations of collating indicators. One of the most popular is the MasterTemplate III, with which we have been working for over 11 years and whose strategy generates clear signals. This template is freely accessible to all Cub members and is implemented live by Carlos Martins in the live trading room on the stock exchange.

Trading Charts at a Glance

Try TC24 Trading Charts in practice

Take advantage of our free guest access and look over the digital shoulder as we trade our specially developed trading tools and strategies on our real money account. We discuss the setups and signals with over 1,500 club members. Try our TC24 for free & without obligation. Templates on a demo account and convince yourself of our trading approaches.

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