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                    Do you know? What is the Best chart for Technical Analysis? How The Charts Can be used for analysing different aspects to predict the movement of a script? The script can be a Stock or equity, Future, Option, currency, commodity, cryptocurrencies etc.

                   So today we will learn about the use of different charts in different situations. But to understand The meaning and requirement of technical analysis, you can click here.                            

                    This is not a big deal to understand the use of different charts in technical analysis, before that you need to simply understand what you required. You need to know that what kind of activity you gonna do. If it is for day trading, you should use a candlestick chart with a shorter time frame such as hourly, 15 minutes, 5 minutes, for scalping purpose same candlestick chart with 2 minutes or 1-minute time frame. So, there is some kind of charts, which we are explaining here:

             1) Line Chart: 

                            Generally, the basic chart is a line chart. It seems simple and adorable. It is used by those who don't know much about other charts and who believe in investment with fundamental analysis. It only shows the high, low, the current price of a script.

        Uses of Line Chart:

• It is easy to understand by a beginner.
• It provides a certain period of high and low.
• various chart pattern identification is easy. like Head and shoulder, W, M pattern etc.
• It should be used to identify the pattern as it shows patterns perfectly.
• Generally, a person can identify the trend by looking at the chart easily.

        Do not use:

• Do not use this chart for intraday trading or scalping trade purpose.
• It does not show open and close at a particular time.
• A trader will not find a proper breakout on trade at an early moment, and when he finds it, the trading opportunity should be missed. 

            2) Bar Chart:

                A Bar Chart is an improved chart than a line chart, where you can find an open and close price and high and low price of a specified time period. Look at the below picture.

Bar Chart

            In Bar chart, you can find a lot of detailed information and for which, it is easy for trading purpose. Because as much detail you analyse, you will gain more accuracy.

Uses of Bar chart:

• If you understand the feature of a bar in a Bar chart, then it is very easy.
• It provides all same features as the Candlestick pattern.
• It can be used smoothly for all time frame analysis, such as daily, weekly, monthly, hourly, and 5-minute time frames.

Do not use:   

• The bars are so thin and difficult to catch.
• The open and close lines create confuses.
• Most of the pro traders ignore this because there is a better option with a candlestick chart.

        3) Heiken Ashi:

                Heiken Ashi is also known as the 'Average Bar' in Japanese. It is actually based on the average price conducted in the market. So, basically, as per its behaviour, the chart shows the market trend. It looks like same as the Candlestick pattern but, it works as a trend in the market. So, this is basically used in the market to determine the trend and predict the market movement and price accordingly.

                The Heiken Ashi Formula:

                Normal candlestick charts are composed of a series of open-high-low-close (OHLC). candles set apart by a Time series. The Heikin-Ashi technique shares some characteristics with standard candlestick charts but uses a modified formula of close-open-high-low (COHL):

Uses of Chart:

    1) The chart seems similar to the candlestick bar. So, It has High Low, and Open close as per its specified formula.

    2) The Green candles with no lower shadows show a strong uptrend and should ride profit.

    3) The Red candles with lower shadows show a downtrend in the market hence predictable that the market is going to fall.

    4) It becomes easy to understand the market movement.

    5) It is better for a quick solution in the market. So it is good for trading with the trend.

Do Not use:

• It is a lagging process.
• It may not work for some time.
• But a lot of people do not use it, due to lack of knowledge.

        4) The Candlestick Chart:

                The Candlestick charts are a technical tool that packs data for multiple time frames into a single price bar. This makes them more useful than traditional open-high, low-close bars or simple lines that connect the dots of closing price. Candlesticks build patterns that predict price direction once completed.

                In simple words, candlestick patterns are very useful. The chart itself shows all. You can identify various chart pattern that will be helpful for trading. The chart patterns are 'W', M, Head & shoulder, flag, triangle pattern etc. you can also find various candlestick pattern. These are Bullish Engulfing, Bearish engulfing, Hammer, Hanging man, mother & baby candle. These are the most important trading patterns that are used.

        Use of Candlestick Chart:

1. Importance of Candle bar and shadow.
2. The Green candle bar shows a bullish candle and Red candle shows a bearish candle.
3. One candle can't say the market is bullish or bearish.
4. The trend should be assigned by multiple candles and proper pattern formation.
5. Actually, If you can understand the chart behaviour, then you can easily predict the market behaviour. A chart is nothing but the movement of price. So, it is very important to understand the movement of the market.
6. There are various kind of chart pattern and other techniques, such as:

• Support & resistance
• Trendlines
• Range bound market
• Trendy market
• Head & shoulder Pattern, Inverse Head & shoulder pattern, W & M pattern, Flag pattern, triangle pattern etc.

            These are the various Research and analysis about Various and most used charts for Best Technical Analysis. Please comment your opinion if, you like it.

Thanks For Reading🙏

Wise world 21st🌏

$$\begin{aligned}&\text{Close}=\frac{1}{4}\text{ (Open}+\text{High}+\text{Low}+\text{Close)}\\&\quad(\textit{The average price of the current bar})\\&\text{Open}=\frac{1}{2}\text{ (Open of Prev. Bar}+\text{Close of Prev. Bar})\\&\quad(\textit{The midpoint of the previous bar})\\&\text{High}=\text{Max[High, Open, Close}]\\&\text{Low}=\text{Min[Low, Open, Close]}\end{aligned}