Be fearful when others greedy, be greedy when others fearful (Warren Buffet)
This chapter will discuss introducing charts such as the types and constructs that make up it, as well as the time parameters in a chart. The material presented may be rather mild for readers who are experienced in charting. You can go directly to the next page or choose to read again as refreshing.
Charts is an image or graph whose main function indicates the history of the movement of the value of the stock price in a certain period of time, so it is needed as the main tool to perform a technical analysis. There are three types of charts that are most commonly used, namely:
- Line charts.
- Bar charts.
- Candle charts.
Figure 3. TLKM Line Chart. Shows example line charts on stock of PT. Telkom period Jan 2007 – Jul 2007.
Figure 4. TLKM Bar Chart. Shows example bar charts on stock of PT. Telkom period Jan 2007 – Jul 2007.
Figure 5. TLKM Candle Chart. Shows example candle charts on stock of PT. Telkom period Jan 2007 – Jul 2007.
Note: How to read charts include: time line (horizontal), price line (vertical) and history line price movement (diagonal) already explained on previous page
