Chart

Traders use trading charts as a tool for their technical analysis since they are visual representations of how an asset's price has changed over time. These charts can produce recognisable patterns that allow traders to learn what the price of shares, indices, and other markets, as well as forex pairs, may do in the future. Chart patterns are seen to repeat themselves, despite the fact that it is not always feasible to foresee how a market would act.

Trade charts come in a variety of forms, but they all display the same trading data, such as the previous and current prices. Line, bar, and candlestick charts are the three most used types of trading charts.

Technical analysts can interpret the actions of buyers and sellers using the unique patterns that appear on trading charts. The fundamental components of a graph that might inform traders of the potential direction the market may take are these patterns. A chart will show you that the market often moves in a single general direction or trend. Market trends come in three flavours: uptrends, downtrends, and sideways movements.