What Is A Price Chart

A price chart is a graphical representation of the historical prices of a security, commodity, or currency over a specific period. It’s a tool used to visualize and analyze market trends, patterns, and fluctuations. The trends may be bullish (rising prices) or bearish (falling prices).

Price charts typically display the following information:

• Time (x-axis): The horizontal axis represents time, with equal intervals for each time period (e.g., minutes, hours, days).

• Price (y-axis): The vertical axis represents the price of the security, commodity, or currency.

• Price action: The chart displays the opening, high, low, and closing prices for each time period, creating a visual representation of market activity.

Common types of price charts include:

• Line charts

• Candlestick charts

• Bar charts

• Point and figure charts

Price charts are essential tools for traders, investors, and analysts. It is a tool that can help in Identifying trends and patterns, therefore enabling an analysis of market sentiment to make informed investment decisions and monitor trading strategies. They are typically the primary tool for Technical Analysts.

An example of a price chart is one above for Meta Platforms Inc. listed on the NASDAQ exchange. On it we can see some basics that:

• It is a candlestick chart, with bullish candles in green and bearish candles in red.
• The price-axis is in US Dollars.
• Current price for META is 574.32 USD
• Its time frame is Weekly, meaning each candle took a week to form.
• There is zone of support around 120.83 USD that remained strong.
• There is a zone of resistance around 381.57 USD that got broken through.
• An intact upward trendline is in play.