The Heikin-Ashi chart (meaning "average bar" in Japanese) was developed by Japanese traders and is a modification of candlestick charts. It smooths out price action by averaging the price data over multiple periods. This makes trends easier to identify by…
The candlestick chart originated in Japan in the 18th century, developed by Munehisa Homma, a Japanese rice trader. He used candlestick patterns to predict rice price movements based on market psychology. Each candlestick represents open, high, low, and close prices,…
The Renko chart (from the Japanese word "Renga," meaning "brick") was developed by Japanese traders in the 17th century. It focuses only on price movements, forming new "bricks" only when the price moves by a set amount. Unlike traditional charts,…
The Kagi chart was developed in Japan during the 19th century and introduced to the Western world by Steve Nison, the author of "Japanese Candlestick Charting Techniques." It is a trend-following chart that changes direction based on significant price reversals…
The Point and Figure (P&F) chart was developed in the late 19th century and refined by Charles Dow, the founder of Dow Theory. Unlike time-based charts, P&F charts focus only on price movements, using X’s to indicate price increases and…
The bar chart (Open-High-Low-Close or OHLC chart) was developed in the early 20th century as an improvement over line charts. Each bar represents four price points: open, high, low, and close. The left tick represents the opening price, and the…
The line chart is the most basic form of price chart, developed as a simple way to visualize stock trends over time. It plots only the closing prices of a stock and connects them with a continuous line. The closing…