1

Know the market: how to read and construct charts

What topics are covered in this chapter?

Technical analysis is defined as the in-depth study of the behaviour of market prices on charts and it begins with the different types of chart:

  • line
  • bar
  • candlestick
  • point and figure
  • kagi
  • volume
  • equivolume
  • equivolume with closing price

What are the objectives?

  • To know how to construct line, bar and candlestick charts.
  • To read volume charts and understand the relationship between price and volume.
  • To know what point-and-figure, kagi and equivolume charts are.
  • To read and interpret your own chart for your own trading purposes.
  • To understand what technical analysis is all about and the basic principles underlying the study of technical analysis. ...

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