Types of Technical Charts
Understand the most common chart types used in technical analysis and how they help traders make decisions.
Candlestick Chart
Shows open, high, low, and close prices for each time period using candle-like shapes. Widely used for pattern recognition.
- ✔️ Bullish and bearish patterns
- ✔️ Easy to spot trends & reversals
- ✔️ Popular among day traders
Line Chart
The simplest form of chart that connects closing prices over time, making overall price trends easier to spot.
- ✔️ Great for beginners
- ✔️ Shows long-term trends
- ✔️ Less clutter, more clarity
Bar Chart
Displays open, high, low, and close in vertical bars. More detailed than a line chart, but less visual than candlesticks.
- ✔️ Compact price view
- ✔️ Used in classic technical analysis
- ✔️ Cleaner for high-volume stocks
Heikin Ashi
A modified candlestick chart that averages price data, making trends smoother and clearer by filtering out noise.
- ✔️ Reduces market noise
- ✔️ Helps spot strong trends
- ✔️ Not for precise price points
Renko Chart
A brick-based chart that filters out time, only plotting significant price movements. Ideal for trend-focused trading.
- ✔️ Focus on price movement
- ✔️ Eliminates market noise
- ✔️ Best for swing trading
Point & Figure
Plots X's and O's based on price movements, not time. Helps identify breakouts and support/resistance clearly.
- ✔️ Time-independent
- ✔️ Ideal for breakout traders
- ✔️ Simplifies trends
Kagi Chart
Focuses on price reversals using thick and thin lines. Helps traders stay with trends until clear reversals occur.
- ✔️ Trend-following style
- ✔️ Great for longer-term trades
- ✔️ Filters out small fluctuations
Summary
Each chart type serves a unique purpose. Candlesticks and bar charts are the most commonly used, but alternative charts like Renko and Kagi help traders filter noise and focus on meaningful price action.