As mentioned before, charts are primary tools to analyze the indice market in real-time. There are three main types of charts :
1) Candlestick chart
There are 4 components needed to construct a candlestick, the Open, Close, High and Low price for a given period. Looking to the below examples, the high is marked by the top of the upper shadow; the low is marked by the bottom of the lower shadow representing the high/low price extremes for the period.
The Body of the candlestick is called the real body, and represents the range between the open and closing prices. If the close price is lower than the open price, the body will be black, if the close price is higher than the open price, the body will be filled-in. Most commonly used among traders are candlestick charts because they are much more visually appealing than the other charts.
The white candlestick is called BULLISH (Close price > Open price indicates Buying Pressure)
the black candlestick is called BEARISH (Close price
The bar chart is made up of four parts components: open, high, low, and close price for a given period.
A line chart uses only the closing prices to form a line and present much less useful information than a candlestick or bar chart. Therefore, they are not used when trading.
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