EP-7: Types of Trading Charts | Which Chart is Best for Beginners?

[00:08] Looking at the chart? I know you have the wrong chart. And many beginners like you do not know that the chart you are seeing is the wrong chart. Well [music] in today's episode we're going to talk about how many types of charts there are and

[00:22] which chart should we use. For those who do n't know about me, my name is Dinesh by the name of Stock Burner and this is my younger brother I am Arjun Krola and I am 17 years old and I am new in trading and he is new in trading i.e. only 17 years old, he wants to

[00:35] teaching him trading so I thought why not when I am teaching him trading so that every beginner can get help in learning trading from zero and he has a dream car which car he wants to buy brother 91 Porsche 911 he wants to buy at

[00:51] the age of 18 but he will not be able to buy it, it will be possible only when he will be able to do trading properly I am sure that I will be able to teach him trading properly so that he can achieve his dream card. Well, today's topic is going to be

[01:05] build up the mindset of a trader and what is the reality of trading. And then we're into technical fuzz. That means we will understand the complete technicalities through this series. When it comes to technicals, the first thing that comes to mind is the

[01:18] charts. Because who do we look at when we trade ? to the chart. Let's do it by looking at the chart. So if you look at the chart incorrectly, this chart that we have put up is a line [music] chart. Do you know who looks at this chart ? Who? Only those professions

[01:32] which have to hold long positions, very long positions. A lot of money has to be invested in the market. Let's look at this chart. But this chart has no meaning for the trader. So if you guys use this chart then stop using it today itself.

[01:46] use this chart then stop using it today itself. So our topic today is going to be types [of music] off charts. Types of ? You may say there are many types but there are mainly only three types of charts

[01:59] [music]. 1 2 3 The first one is the line chart you were just looking at. Right? The second is the bar chart. The third one which is the most important is the candlestick

[02:11] chart. So there are mainly three charts which we observe. But as soon as you open the chart here and go here, you will probably see many types of charts here. But all these types of charts are made up of only three.

[02:26] talk about candlestick, this is a candlestick. This is a candlestick. This is a candlestick. When you talk about bars, this is the bar. This is a bar and maybe yes this is two bars. This is also a candlestick. And when we talk about lines. This is the line. This is the line. This is the line.

[02:42] This is the line. Let us understand what is the difference between the three charts and talk about line chart. What is this line chart? No noise. The What happened in the market ups and downs ? Nothing is visible.

[02:58] How does it work? For example, today our market chart closed at 100. So we made a dot here. The next day our market closed at 110. So we made a dot here. The next day our market closed at 120.

[03:12] So I made its closing dot here. And when we connected these dots. What do we become if we join these dots together ? The line became a line. And similarly, if for example, the next day the price closes again around 110. From here it has a

[03:25] closing price. Next day again the price closed around ₹1 ₹100, so this is its dot. Then the next day from here it again closed around 110, so this is its dot. So we only look at the closing of the next day or the next candle in the time

[03:39] frame in which we are looking, for example, if we are looking at it in 15 minutes, one hour or we are looking at it in four hours , one day. So we will join the dot with the closing dot of that particular time frame

[03:55] line chart is formed. Does this make any sense? No, no, I am not understanding. That's why I don't understand how far the story in between went ? How far did it go up? Where did you close it ? We don't know anything. When we

[04:07] don't know its story, will you be able to trade on it? No. I won't be able to do it. So why were you looking at the chart? It seemed easy. The lining was the lining. The lining But let me tell you

[04:20] professional traders. That is, those who do not want much noise in the market. If they want to invest, they only have to look at the trend of the overall market. Trend. You have to see the trend. If the chart is moving like this, like this,

[04:35] Bullish is a bullish trend. upwards. It is going upwards. Right? So from this we are Trend. Trend. Now, if this same thing, this same chart of ours is

[04:48] coming down like this, then can you understand this trend? Bearish Bearish trend. So this is the only thing that is making us understand that this is a bearish trend in the market in any specific time frame. But will this help in trading

[05:00] ? I won't be able to do it. So the big players have to create big positions. Chart patterns don't want to see all this. They just want to see the market trend. And it is said that trend is your friend. That means if

[05:13] they want to earn money with the trend then what do they use? Line chart. Line chart. Now let's talk about the second chart. What does this line chart look like ? Let me show you this. The chart you were using just now is a line chart. That

[05:27] means we can see only lines inside it. How is the trend here right now ? I am not able to understand anything right now. Can't understand anything, right ? But right now there is a sideways trend here. What is the trend right now? If we look at it from here.

[05:40] What's the trend like from here to here? Bearish. There is a bearish trend. There is a downward trend. And what is the overall trend here? Of the is a down side, right? So we don't get much noise in this. That means there is

[05:53] not much confusion. Now if we see it going upwards from here, then we see that it is an upward trend. From here the price came down, came down, broke the low. So take a short and sit down. So those who are not able to give much time in the market. They just

[06:06] open the chart once and see where it is bearish, then go short in the market or take a big bearish position and hold long, so this is what happens for them, nothing one line is visible which tells us whether the market is going up or down,

[06:20] apart from that nothing else, now let us talk about the next type of ours, bar chart, now let us talk about bar chart, what does bar chart mean, bar means, have you eaten a bar, how is it, it is just like a box,

[06:34] any bar is a bar. When we also a bar in the candlestick. So let me show you what kind of bar it is. When we talk about bar charts, here are the bars, this is our bar chart. Let us

[06:47] understand this. Bar chart. It is simple in bar chart. Look, if you look at the bar chart, it will look something like this. Look at this. Is this making any sense? So it But we get to see some things in it. How is this bar chart formed

[07:01] ? This is how a bar chart looks like. It opened. Yes. Ok? [MUSIC] It got high. Here it is, make it. Come here and close it. It opened. This made it high. Here it is, make it. Come here and This made it high. Here it is, make it. Come here and close it. Ok? It opened. I felt high.

[07:16] Came here. Come here and close it. So in this we get to see everything like open, high, low, close. Now let us see on the chart how this chart looks. When we place a bar chart, for this we will go to the candlestick

[07:31] chart where we can place it. If we place the bars here, it looks like this. So if you look here, these candles are not candles. Meaning this proper bar is made. And here some different structure seems to be taking shape. You

[07:44] see this is coming down. Something like this is coming. Something like this, something like this, means some structure like a spade is being made. Look at this L L L up L down L up L down what is visible here inside the chart, right now a line is visible, a

[07:58] vertical line, so why is it looking like this here, let me also explain how it is formed in this way in a line bar chart, for example, there was a candle [music] it opened at this place, right and it made a high, it made a low, it

[08:12] came and closed here, now the next candle is obviously going to open from here, so it will we will not see such an outside, right, so we do not have to look outside in this, so let us assume our opening to be here, the closing opened here, the market

[08:25] closing opened here, the market made a low directly from here, okay, and it came and closed here itself, it did not make a high, so what happened in the market from here, a down move, it opened here, the market made a low from here, it made a high from here and it

[08:40] came and closed here, okay, then another opening happened right here, the market made a low from here, the market made a high here and the market came and closed here. So basically the price fell from here. After falling, the closing came up. It

[08:55] price has started giving upward momentum from here. So what does the bar chart show us? It shows us the opening price, the high price, the low price and the close price. That means we get to know the complete story,

[09:10] That means we get to know the complete story, But can you read it? No. Can't you read it? So if we have to trade, then on what basis have

[09:23] we learnt all the concepts for trading ? Based on candlesticks, i.e. candlestick patterns. So whenever you open any chart on your phone , whenever you open any app, first of all see which chart is visible? Candle

[09:38] candle ka na? Candlestick chart. That means, whenever you open any platform, the first thing you see is the candlestick chart. This means that the platform also knows which chart is best. Which chart is best? Candlestick

[09:51] talk about candlestick charts. We understood from the outside chart that open high, low, low tells the whole story. But we do not exactly know which candle is this. Now I don't understand what trade I should take after this.

[10:05] However, I understand that this led to a bearish move. This is a bearish candle bearish candle. It is a bearish candle. The color will also change. Where should the butt trade be taken also change. Where should the butt trade be taken ? How is the total candle forming?

[10:18] we do not know much about the names of these individual candles. Do you know its name? Do you know its name? Do you know anyone's name? Don't know. But just know that it is a bar chart. Open is high low close. So as a trader, if I have to

[10:30] work on this, I probably won't be able to do it. Because I like to trade by looking at candlesticks. So that's why now let us talk about the most important chart that people have to see, which every beginner has to see?

[10:42] candlestick chart. Now how is a candlestick chart created? Tell me about the candlestick chart, I think I have already told you what it is ? How are these candles made? Open we ? How are these candles made? Open we 're okay? It opened. It became high high. There it is.

[10:55] So here one of our candles has become a candle stick. Ok? Now tell me brother open. There it is. It became high Close came here and closed it. So what has become of us? A

[11:09] candle is it called? Bullish candle. Bullish candle, Morevju candle, Big Bar candle. But if I say this, which candle is this called? Tell me the name of this candle ? Don't know. Don't you know? This is the

[11:22] problem with this previous candle, when we talked about candles, how the open, high, low and close happened, but we do not have any knowledge about what this candle is, what is its nature, what does it do next, but when I talk about it, I

[11:37] know its nature, then when I talked about it, it opened here, the market made a low here, then after coming here the market closed it and which candle was this, Hammer candle, so as soon as it was formed, I remembered its name, what is its nature

[11:52] ? Hammer. Reversal Reversal means the price came down. If a hammer candle is formed somewhere here, it can take it upwards. That means it is very easy for us to read it. We can understand this and we know its nature that when this candle is made then

[12:07] what is its function? To reverse the price. When this bullish candle is formed, Bring it into an uptrend. That is, what we understand from here in the market is that there is a bullish move in the market. If this is a Doji candle, what does it mean? Do

[12:19] here also. Can go here also. That is, if I tell you this in general, then when I made these three candles here and showed them to him, he came to know what this candle means? What could happen next ? What does this candle mean? What does this candle

[12:32] mean? That is why whenever you trade, you have to keep only one chart open. Candlestick. Candlestick charts. Now we will go here. We will go straight away. Which one do we have? Here is the candlestick chart. Japanese

[12:47] candlesticks are the best way to understand. Now brother, are you able to understand the chart ? Can you see the chart now? Yes. What do you understand here? What is happening here? The market was in a downtrend. It just went sideways. It was

[13:00] in a downtrend. How did you know? Candle Red Candle came. There are big red candles. What candles are these called? Bearish. Bearish candle, More Boju candle, Big Bar candle. So when these big bearish candles are formed, we understand that it

[13:13] is a bearish market and at the same time when some big bullish candles are formed, for example, if we see some bad bullish candles here, what do we so from whom do we come to know this,

[13:27] whether the chart, when we saw the line chart, were we able to read it or not, even we saw the bar chart which was showing us open, high, low, closing, were we able to read it there or not, so that is why your system, which is

[13:40] your phone, which is your broker, the platform on which you trade, by default, which you trade, by default, this chart is always displayed for you, which is the candlestick chart. This means that the platform also knows which

[13:53] chart is best for a user so that the user can understand it properly and trade on it. If understand it properly and trade on it. If read this. I've never read about line charts. Must

[14:08] charts. Some people use it. Some people use Holo. Ok? Some people come here after using a pesticide. It comes as a pesticide. This is also used. Some professionals also use this. But this is also a type of candlestick.

[14:21] What are you seeing in this too ? What is this brother? It's just candlesticks. But the thing is that if someone is bearish then he will continue to be bearish. We will not find bullish candles in between. Isn't it? No, when the upside price is bullish, if every

[14:33] candle is closing higher, then it means that we will see bullish trend because the price is closing higher every time. When the price is closing lower every time, we will see all the candles here closing in red. No green candle will be found in this. This becomes a little

[14:47] easier. When you move to a slightly professional level. You have to eliminate the noise in between. n't panic with the green candle in the middle. You want me to remain

[14:59] green candle starts forming here. I should exit the trade. Isn't it? So you work again on red and green candles only. When you reach a little advanced level and you know how to understand directions. But if you are a beginner then

[15:12] you should just look at one chart. That is the candlestick chart. That means, Candlestick charts. Why use candlestick charts? It is easy to understand. It is easy to understand. Where can I find candlestick patterns? On

[15:26] candlestick charts. On a candlestick chart. That means, whatever knowledge you have acquired from the book , whatever knowledge you get in the surroundings, all that knowledge is used on this chart and by understanding this chart only, you are able to execute the trade. Right?

[15:39] So I hope you have understood which chart we should use and why we should use it. So I am sure from today onwards you will not use any line chart, bar chart or any just need to use one chart which comes in your system by default.

[15:54] Apart from that, you should not concentrate your mind on the second or third chart. You will get confused and will not understand how to trade. Rest whoever wants to trade can start In Delta Exchange whose link I have given in the description box. There

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[16:31] So this was the seventh video of our series, which means we are going to talk about that when you have to learn trading, you have to clear the concept of technicals matter in trading. By understanding the technicalities, you

[16:46] liked this video in which I told about charts because you are learning technical analysis then you should first know which chart to look at. When the chart is clear to you, then now I will talk about

[17:00] which can be your best time frame, for that you will have to wait for the next episode because in the next episode we are going to decode the time frame and how we use those time frames, right, are you excited? Yes, so now we will meet

[17:14] share it, subscribe, if you guys are beginners and are watching this video, then in the next video, till then, bye-bye see you, Jai Hind. Jai Hind.