difference b/w CHARTS and INDICATORS ? ie charts are the subset of indicators OR Vise-versa?

Question

what are these two terms(charts and indicators).which of two are used in Software(like AMIBROKER)
Which CHARTS and INDICATORS are good for INTRADAY trading.
any helpfull study material or URL

Answer 1

Charts is plot of price vs time frame. Most common charts type are

1. Line Chart ( Good enough for general mass)

2. Candlestick

3. Bar Chart

Charts can provide very limited speculative capability unless used with indicators.



Indicators are some of the established technical analysis formula calulated values that are plotted against regular charts. Examples of indicators are

1. RSI (relative Strength Index). It gives an idea of overbought and oversold stock. (For a very small period - main for day trade or period as small as 1 week)

2. Stochastic -Usage same as RSI

3. MACD (Moving Average Convergence and Divergence). Its also gives indication of buy and sell.

4. Moving Average Crossover. They also provide indication of buy and sell.



These are basic indicator. There are many more available.



For Ex. To Read SAIL chart refer

http://www.TopStockResearch.com/INDIAN_STOCKS/STEEL_AND_STEEL_PRODUCTS/Steel_Authority_of_India_Ltd.html#techChart



This chart will give you price /date plot along with Moving average, RSI, MACD, Bollinger etc.

Answer 2

The charts are based on the daily price and volume data of the stocks you may have under study for onward investment. While the indicators (including but not limited to the momentum indicators) would be adjuncts you would be applying to the price charts along with suitable moving averages to ascertain whether the stocks at their current market prices are oversold and potential buy candidates, or are overbought and ready for a probable sell.



A word of caution would be quite in order. Intraday trading is a zero sum game, and therefore should be avoided at all costs. Unless you have access to the trading floor of the stock market you would be trading through.



To check the veracity of para 2 above you may conduct simulations (or dry runs without applying real money in your transactions) of select stocks while applying the stochastic oscillator and MACD as adjuncts to the price-volume charts. Of course, there are other indicators which you may consider applying; but intraday trading is not recommended.



Sincerely,



Akash

http://www.narachinvestment.com

http://mobile.narachinvestment.com

http://www.narachphilosophy.com

http://www.narach.com

http://finance.narach.com

Answer 3

I would avoid daytrading as it is very difficult to succeed in as every public technical indicator out there that I know of is a lagging indicator or when presented with the same situations over time, will react differently. You'll also find that what works great on a daily chart, doesn't always work well on say a 5 minute chart.



Bigcharts.com is a good chart site.

Answer 4

Chart is graphical representation of movement in the price of a stock or currency pair. The indicator is a result from a chart, i.e,when you are monitoring a chart there can be an indicator that shows a signal to buy...like MACD indicators.



There is lots of indicator, you need to understand them..try metatrader4 or 5 you will get to learn lot from there..

For intraday, candlesticks are best..candlestick are best for all time frames but if you want to scalp..then...M5 chart is good..

Answer 5

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Answer 6

I suggest you look a book called.... A beginners guide to Short term trading, by Toni Turner

Bought this book a few years back for 3.99 in the discount section at borders.

Book is very useful in short term indicators and what to look for, research all the indicators in the book.

I myself like yahoo charts.

Answer 7

Charts are many kind Candle, Bar, Point & Figure, line to name a few and each represents graphical representation of movement in the price in different way, Eg.Line Graph is closing basis Candle's reflect Emotion in market. While indicators are Computer generated yardstick to know the behaviour of market based on Price, Volume and time factor as different indicator represents differently. http://prabhakar-views.blogspot.com

Answer 8

vise-versa



MACD

RSI

OBV



stockcharts.com