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Candlestick Charting For Dummies® by Russell Rhoads

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Comparing Candlestick Charts with Alternative Charting Methods

Knowing a bit about the options that exist outside of candlestick charts serves as a point of reference and makes clear the benefits of using candlestick charts when analyzing price data.

Although they’re not as versatile and useful as candlesticks, each of these alternative charts has its benefits:

bullet Line charts are simple and straightforward.

bullet Bar charts are important to understand because they’re still relatively prevalent.

bullet Point and figure charts are great for revealing support and resistance levels.

I’m confident that you’ll be a believer in candlesticks when it’s all said and done, but understanding the alternatives is certainly worth your time.

Line charts

A line chart is a line on a chart that displays security prices over time. A line chart represents the price — usually the closing price — of a security from one period to the next.

On a very short-term basis, a line chart is definitely a proper choice ...

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