Charts are very vital in MCX-NSE exchange as they support in monitoring the rate change of the stock or commodities that you are trading. There are many kinds of charts that you can use in monitoring the change:
A line chart draws a line from single closing price to the next closing price. When you string the lines combine you are capable to see the movement of the commodity/stock over a period of time.
This is a quite bit complex and it presents the closing and opening prices. It also presents the lows and highs of the trade. The bottom of the vertical bar presents the lowest traded price while the peak of the bar shows the highest price paid.
This is the most famous chart used in MCX-NSE trading. The big function of this chart is to help as a visual aid. There are many factors why candlestick charts are general: they are simple to use, interpret and are best tools in supporting you in identifying the market turning point.
If you are a newer you are on the lucky side as the chart comes with chill names such as “shooting star” which supports you in remembering what a provided pattern means.
How to Read a Chart
You should begin by locating the chart that you want to analyze and then find a range. Remember that charts present both short periods (such as 12-24 hours) and extensive periods such as weeks and months. As a newer, you should begin with charts that present short periods.
To simply understand the data showed you should start with a single data bar. Here you should locate the close and open prices that are indicated by the horizontal “peg” on the chart bar. If the close figure is higher than the open figure, the figure is actually trending up. If on the other hand the open rate is superior the close rate the rate is trending down.
You should note the points where the chart hits a low for a number of times, but it does not fall below a certain rate. There are vital places of help where the market forces stop the rate from plunging.
You should also locate areas in the chart where there are several highs in the same range. These areas indicate resistance.
You should note that both resistance and support can easily break when there is some external reason such as positive or negative news.
There are tips how to read MCX-NSE charts. Are the tips of advantage to you?
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