Binomo is one of the most famous online trading platforms in the world. Among other benefits, it offers several types of charts. Their combination helps to navigate the market and learn how to trade different assets on Binomo. In this article, we will discuss the most popular charts available on the platform.
Linear charts
A linear chart gives traders a visual representation of the price movement of an asset over time. It “removes noise” from less critical moments in the trade period, for example, the opening, high, and low prices, because it often only uses closing prices. Hence, linear charts are usually used to track price movement depicted as a line.
Japanese candlesticks
Japanese candlesticks are a trending method to monitor charts and analyze the current state of the market, suitable for traders who employ technical analysis. It provides more information than a traditional linear chart. This type of price chart displays the high, low, opening, and closing prices for each period, forming the basis of many technical indicators.
Bar chart
It uses the same concept as the Japanese candlestick, but it depicts information as a bar rather than a candle for a predetermined time. The vertical bar shows the high and low prices for the specified period. In contrast, the opening and closing prices are shown as the right and left horizontal lines on every price bar.
Candlestick chart
Candlesticks are a diagrammatic representation of highs, lows, and opening and closing prices to show how the price varied in a certain period. The edge of each wick represents the maximum and minimum price, while the start of it attached to the body shows the opening and closing price. A green candle represents a surge in price for a selected duration, while red means a decrease from the opening price.
Volume chart
Volume could be determined by the number of assets traded, which is what a volume chart explains. A red volume bar indicates that the price dropped. The market views such volume as estimated selling activity. In contrast, a green bar indicates buying volume with an increased estimated price.
Tick chart
It reflects intraday price activity regarding the number of deals (ticks). A new bar (or candlestick, line, area, etc.) is plotted when a predetermined number of trades have been completed on tick charts. This chart type applies to intraday charts with a maximum period of five days.
Range bar chart
A range bar chart, which is not time-based, is made up of bars representing price movement and is used to show patterns and volatility. A new bar is generated whenever a trade takes place outside the preceding bar’s stated price range, defined in settings.
The bottom line
Mastering different types of charts, you must develop your own strategy for trading on Binomo. Do not believe in tricks and ready-made signals that promise you 100% success. Online trading is associated with the risk of losing a deposit, and only education can reduce it. Explore the Help Center, ask the chatbot, or contact the Binomo support team. Also, do not neglect the practice on a demo account.