Tuesday 7 February 2012

Lesson 3 - The concepts and basic tools used in technical analysis process


The chart types present on the stock market analysts use many different kinds of diagrams for analysis, including 3 types of charts are used in a way that is most popular: the chart (Line chart), then chart ...
Currently on stock market analysis professionals use many different kinds of diagrams for analysis, including 3 types of charts are used in a way that is most common: line chart (line chart) , then definitely chart (bar chart), tube chart (Candlestick chart).
Line chart (line chart)

This chart ever commonly used on the stock market, and also the type of chart used in a common way of Sciences used to simulate the phenomenon of economic and social ... and it is also the type of chart used by people in the longest time. But now the stock market by developing science and technology, evolution of the stock market is increasingly complex, so this type of chart less and less is used most on the modern stock market. Currently it is mainly used on the new stock market went into operation in a short time, matching the periodic order matching method for each session or more times in one session but the level of transactions can not reach be used as stock market tuc.Uu order matching method of this type of chart is easy to use, the main reason is because it is used on all stock markets around the world ever today. Currently this chart types are rarely used for analysis on the modern stock market because the stock market today is often quite complex changes, the variations in short time with relatively deviation high, if this type of chart used for analysis is often less effective in the analysis.
Examples of the types of charts (line chart):


Dynamics of the VNIndex(As of 18/01/2007)


Then definitely chart (bar chart)
Examples of chart types then definitely (Bar chart):




















Chart tube (Candlestick chart)
Examples of chart tube (Candlestick chart):


This is schematically improvement of certain key chart (bar chart), it is the Japanese discover and apply on their stock market first. Now it is slowly gaining popularity on the most modern stock market worldwide. This chart reflects most clearly about the volatility of stock prices on the stock market in the form of matching the periodic order matching.

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