The Gold Chart

Learn the different displayed used in gold chart

Investing in the stock market today requires that you are equipped with the best tools to increase your chances to make a profit. There are some different signs and signals that you need to understand. All of these signs and signals can help determine whatever decision you make while the trading stocks. If you are looking to invest in gold, one of the most important thing to have is a gold chart. This chart is related to a stock chart and can provide you with a history of price movements in the market. After you perform chart analysis on all the data presented on the gold chart, you can use this information for your further technical analysis.

The information on the gold chart can be showned in different visual forms. It can be used as a line chart, OHLC bar chart, point and figure charts, and candlestick charts. The easiest and simplest charts is the line chart. It provides information in a way of a line connecting dots of the closing price every day. That basic information is good for beginners who only want to see the closing price of a stock pick at a glance.

The OHLC (Open High Low Close) bar chart is more complex than the line chart. A chart that that uses the OHLC visual representation can provide additional information for investors. The display uses a vertical line or bar that represents a trading day. The highs and lows of the shares is determined by the length of the vertical line. Vertical lines have short horizontal ticks going off to the left and right of the line. This tick represent the open and close prices of the day, by a tick on the right usually for the closing price, and the tick to the left usually for the opening price. This additional information is great for intermediate investors. This will allow them to see how their stock picks have performed during the day’s trading.

Candlestick patterns on gold chart provide superior information. It is favored by a technical analyst, since it present information that is easy to read and interpret. With the candlestick patterns, information on trends and reversals can be achieved. The display is sepicted by the candlestick figures. Each candle represents a day and has a wick at each end of the body. The wicks is known as a shadow. The top and bottom ends of the candle body is the open and closing prices. The shadows and lines are the highs and lows of the stock during the day. The candles will appear white or black. A white candle means that the stock closed higher than it opened, while the black candle means the stock closed lower than it opened. The body of the candle can also vary in length, depicting light or heavy trading.

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