Last week we looked at some of the basic rules you need to know in technical analysis. This week we start our focus on the actual tools of the trade, beginning with a look at Line Charts and Bar Charts. Charts are like maps to navigate. The analyst has to pilot his or her way through the data, translate the stories and come up with a forecast as to the future journey they think any given asset will take. One chart can tell a thousand stories.In this and the next four blogs, I am going to cover the rudiments of what I call the ‘common core’ suite of charts. These include: Line amp; Bar charts, Candlesticks, Point and Figure, Equivolume and Market Profile. The more exotic sounding charts: Heikin Ashi, Renko, 3 Line and Kagi will be covered later in the series. We start though by looking at two forms of chart: the Line Chart and the Bar Chart. Both have their own pro’s and cons but when diving into technical analysis, these are a great place to start.Basic chart set upFor both these styles of chart, prices can be represented either linearly or logarithmically. The…
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