Navigating The Charts Flashcards
1
Q
what do trading charts show?
A
trading charts provide a detailed historical account of how prices have fluctuated over time
2
Q
what is investors’ preferred chart type?
A
line charts
3
Q
which chart is more detailed, line chart or candlestick chart?
A
candlestick chart, offers up to 5x more detail
4
Q
what does a green candlestick bar indicate?
A
price rise
5
Q
what does a red candlestick bar indicate?
A
price drop
6
Q
what do the wicks on a candlestick bar indicate?
A
the highest & lowest price during a period
7
Q
how do shorter time frames impact a trader’s decision making?
A
shorter time frames means faster action and quicker decision making
8
Q
what impact does longer time frames have on traders?
A
longer time frames allow you to observe the price action at a laid back pace
