• Types of Charts
  • Line Charts
  • Bar Charts
  • Candlestick Charts

Types of Charts

Line Chart

  • Closing prices are connected with a line
  • Overview of price movement and easy to understand
  • Good tool for a non-specialized audience
  • Simplicity sacrifices details
  • Does not show Open, High, Low prices

Bar Chart

  • A bar represents the range of each time period
  • The tick to the left shows the Open price
  • The tick to the right shows the Close price

Bar Chart

  • Widely used chart type in technical analysis
  • Shows all important price elements
  • Tops and bottoms clearly outlined
  • Extra information might obscure the message
  • Experience is needed for interpretation

Candlestick Chart

  • Candlestick are considered to be the Japanese version of bar charts
  • Using the open and the close, we draw the body of the candle
  • The high and low are shown with vertical lines from the body, known as shadows

Candlestick Chart Colours

  • Colour differentiates between a bullish and bearish candle
  • In a bullish candle the close is higher than the open and the candle is painted green
  • In a bearish candle the close is lower than the open and the candle is painted red

Candlestick Chart

  • Candlestick charts have became a very popular way of charting
  • Shows all important price elements and provide visual insight about price action
  • Used as triggers towards buy and sell signals
  • Extra information might obscure the message
  • Experience is needed for interpretation

Bar Chart vs Candle Chart

  • Current Close < Previous Close = Red Bar
  • Current Close > Current Open = Green body

Bar Chart vs Candle Chart

  • Current Close > Previous Close = Green Bar
  • Current Close < Current Open = Red body
  • Heiken Ashi Candlesticks
  • EquiVolume Charts
  • Point & Figure Charts
  • Renko Charts

Average Price Bars - Heiken Ashi

  • Heiken = “Average” and  Ashi = “Pace”
  • Visual tool to help better identify trending periods
  • Averaging technique that removes the noise from price charts in an attempt to smooth out the trend
  • Uses the open-close data from the previous period and open-high-low-close from the current period to create an average
  • Heiken Ashi Candlesticks can also be used to identify price patterns and potential supports and resistances

Heiken Ashi - Calculation

Japanese Candles vs Heiken Ashi Candles

  • Notice the noise and the gaps
  • Clear advance and declines with no gaps

EquiVolume Charts

  • Developed by Richard W. Arms Jr., as a price plot that incorporates volume into each period
  • EquiVolume boxes put price action and volume together for easier visual analysis
  • Similar to candlestick charts, but the candlesticks are replaced with EquiVolume boxes that can be squares or rectangles

EquiVolume Charts

  • EquiVolume box consists of three components: High, Low and Volume
  • Boxes are black when the close is above the previous close
  • Boxes are red when the close is below the previous close
  • Volume dictates the width of the box

EquiVolume - Reversals

  • Classic patterns still show up with the added bonus of having volume built into the pattern
  • This makes it easier to verify reversals, continuations, and breakouts through volume
  • Wide boxes show increased volume at the breakout and acts as further confirmation

Point & Figure Charts

  • Point and Figure is the oldest western charting technique
  • It represented a very easy way of analysis before the existence of computers
  • Using just a pencil and graph papers, P&F chartists were able to update and analyze a large number of charts every day

Point & Figure Construction

  • Point & Figure charts consist of price boxes that represent a price move of a fixed size
  • Prices go up in rising columns of X’s
  • Prices go down in descending columns of O’s
  • If the box size is set at 10 points, a move of 10 points or more is required to draw a new X or a new O
  • Price movements less than 10 points would be ignored and the P & F chart would remain unchanged


Point & Figure Characteristics

  • Filter insignificant price movements and noise
  • Remove the time aspect from the analysis process
  • Support/Resistance levels are easier to identify
  • Provide automatic and subjective trendlines

Renko Charts

  • The Renko charting technique ignores time and focuses solely on price changes
  • Renko charts use price “bricks” that represent a fixed price move
  • Bricks have a fixed value, used to filter out smaller price movements
  • If the brick value is set at 10 points, a move of 10 points or more is required to draw another brick
  • Price movements less than 10 points would be ignored and the Renko chart would remain unchanged
  • Bricks move up or down in 45 degree lines
  • Trends, supports and resistances are more clearly outlined

The Story of Desmond Leong

Desmond is your average trader. He started off blowing up 7 (or more.. lost count) accounts amounting to more than 500k, tested over 30 Expert Advisors (EAs) to no success and spent over 10k on stupid useless courses.

Today he runs an award winning trading team and provides market analysis and webinars to some of the largest brokers such as IC Markets, XM, Axi, Tickmill, FXCM, VantageFX, easyMarkets and more.

He now has a simple goal: Creating an army of traders who trade profitably together and keep each other accountable. Guiding them with the most comprehensive no-BS free tutorials so that no one ever needs to go through the pain he went through himself to become a profitable trader.

My Trading Strategy


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