The day trading charts available to day traders are many and trying to choose in-between them is what’s difficult. You have charts that cover the smallest of time frames to charts that cover months and even weeks. It really depends what kind of trader you in order to decide what kind of chart you use. We can classify charts into three different kinds of categories which then can be separated into different time frames.
I use tick bar charts in my day trading strategy
Different Kinds of Day Trading Charts
Bar charts & candlestick charts are very similar in that they are both based on bars where as line charts are based on guess what? Lines. Bar charts focus more on the closes where as candlestick charts are color coded to be able to identify momentum and strength. Each kind of chart shows the same information in different ways such current and past prices.
Many traders use advanced techniques with bar and candlestick charts to identify momentum and formulate strategies to take advantage of the their movement. I’m not going to discuss line charts simply because most people don’t use them.
Different Time Frames
Understanding Day Trading Charts
- Reading a Bar Chart – coming soon
- Reading a Candlestick Chart – coming soon