Chart Styles

All editions in the BlastChart product suite come with 10 different chart styles that can be viewed in standard or 3D mode. Each style gives a unique way of representing the chart's data points (open, high, low, close etc). Detailed information about each chart style can be viewed below.

Bar Chart

A Bar Chart displays 4 pieces of information for each stock, each trading day: opening price, closing price, low and high for each day. Each bar is one day. Volumes are plotted on a different chart and technical indicators are plotted in another chart. BlastChart allows a number of indicators for each chart – but too many become confusing.

Candlestick Chart

The Candlestick chart is essentially the same as a Bar Chart, but there is a “candle” between the opening and closing values. Black or red if the price is falling, and white / clear or green if the share price is rising. It allows traders to visually see the changes more clearly than the bar chart. Trend lines generally are calculated with the closing price (not the highest price) since this reflects traders willingness to hold prices overnight or over a weekend.

There are 4 advanced Candlestick charts in BlastChart – each with its own features.

Equi-Volume Chart

Richard W. Arms, Jr. explained Equi-Volume in 'Volume Cycles in the Stock Market'. They are different from candlesticks with no open and close prices, and different from bar charts with no time factor.

Equi-Volume compares price and volume and plots them together as one piece of data. The height of each bar represents the high and low for each period and the width represents the volume relative to the total shares traded over the time period being analysed. This type of chart is very similar to Japanese candlesticks except that volume is incorporated into the data point rather than added as an indicator on the side. Generally, a wide bar is deemed to be more significant than a thin bar because large volume usually precedes a significant price move.

Candle Volume Chart

Candle Volume combine the features of Equi-Volume charts and simple Candlestick charts.

These charts have the wicks or tails and filled/unfilled body features of Candlestick charts, as well as the volume-based body width of Equi-Volume charts. This combination gives us the unique ability to study Candlestick patterns in combination with their volume. Since the volume factor - instead of adding it as a separate indicator at the bottom of the chart - is merged with the price factor, value for time factor is reduced.

Analysing Candle Volume charts is similar to Candlestick charts. High volume emphasis is made clear with wide candles. Wide and short candlesticks indicate uncertainty. The trend might reverse. Wide and tall candles usually indicates strong momentum. Such candlesticks commonly appear at breakouts.

Equi-Volume Shadow Chart

The Equi-Volume shadow chart uses volume during that interval to control the width of the candlestick. Thus a fat candle means that the volume was high while a skinny one means that the volume was low. Low volume often means the movement does not confirm a price move as much as large volume. Thus with an Equi-Volume Shadow chart movements in the price that are very significant.

The basic interpretation of the Equi-Volume shadow chart is that short fat candles indicate a small change in price, but heavy volume. This has a tendency to occur at turning points. Tall and narrow candles indicate a small change in volume, but a large swing in price.

Heikin-Ashi Chart

The Heiken-Ashi is a modified Candlestick with a modified formula for calculating the bars. Heikin-Ashi means “average bar" in Japanese. It is one of many techniques used in conjunction with candlestick charts to improve the isolation of trends and to predict future prices. Down days are filled, and up days are empty.

Point and Figure Chart

Point and Figure charts are designed for long term investment rather than shorter technical trading; but do help determine entry and exit points. They only chart the closing point unlike Candlestick charting.

The key to Point and Figure charts is the establishment of the unit of price, which is the unit measurement of a price movement that is plotted on the graph. On Point and Figure charts, there is no time axis, only a price axis. Rising stock prices are shown with X's and falling prices are shown with O's. These points appear on the chart only if the price moved at least one unit of price in either direction.

The technique is over 100 years old. "Hoyle" was the first to write about it and showed charts in his 1898 book, The Game in Wall Street Point and figure charts are drawn with X's and O's where columns of X's are rising prices and columns of O's are falling prices. The correct way to draw a point and figure chart is to plot every price change but practicality has rendered this difficult to do for a large quantity of stocks so many point and figure chartists use the summary prices at the end of each day. Some prefer to use the day’s closing price and some prefer to use the day’s high or low depending on the direction of the last column. The high/low method was invented by A.W. Cohen in his 1947 book, 'How to Use the Three-Point Reversal Method of Point & Figure Stock Market Timing' and has a large following.

The charts are constructed by deciding on the value represented by each X and O. Any price change below this value is ignored so point and figure acts as a filter to filter out the smaller price changes. The charts change column when the price changes direction by the value of a certain number of Xs or Os.

3 Line Break Chart

The 3 Line Break Charts are actually Any Line Break Charts. They are not limited to just a three line reversal. You can create Two Line Break Charts, or even Eighteen Line Break Charts.

Basic Trading rules for a 3 Line Break are:

  • Buy when a white line emerges after three adjacent black lines (a "white turnaround line").
  • Sell when a black line appears after three adjacent white lines (a "black turnaround line").
  • Avoid trading in "trendless" markets where the lines alternate between black and white.

An advantage of 3 Line Break charts is that there is no arbitrary fixed reversal amount. It is the price action which gives the indication of a reversal. The disadvantage of 3 Line Break charts is that the signals are generated after the new trend is well under way. However, many traders are willing to accept the late signals in exchange for calling major trends.

Renkor Chart

Renkor charts look similar to candlesticks, and were popularized by Steve Nison in his book Beyond Candlesticks.

Renkor charts are price charts with rising and falling diagonal lines of boxes that are either filled or hollow. Renkor charts are "time independent" charts that do not have constantly spaced time axes. The word "Renkor" comes from "Renga", the Japanese word for "brick". The filled and hollow squares that make up a Renkor chart are often referred to as "bricks."

Renko charts have a pre-determined "Brick Size" that is used to determine when new bricks are added to the chart. If prices move more than the Brick Size above the top (or below the bottom) of the last brick on the chart, a new brick is added in the next chart column. Hollow bricks are added if prices are rising. Black bricks are added if prices are falling. Only one type of brick can be added per time period. Bricks are always with their corners touching and no more than one brick may occupy each chart column.

It's important to note that prices may exceed the top (or bottom) of the current brick. Again, new bricks are only added when prices completely "fill" the brick. For example, for a 5-point chart, if prices rise from 98 to 102, the hollow brick that goes from 95 to 100 is added to the chart BUT the hollow brick that goes from 100 to 105 is NOT DRAWN. The Renkor chart will give the impression that prices stopped at 100.

Hollow bricks are bullish, black bricks are bearish - that's the simplest interpretation of Renkor charts. Renkor charts may be most useful in identifying trends and trend direction. Because they screen out moves that are less than the Brick size, trends are much easier to spot and follow. In order to avoid whiplash periods, some people wait unto 2 or 3 bricks appear in a new direction before taking a position.

Kagi Chart

Kagi charts are an excellent way to view the underlying supply and demand of a security. Kagi charts are independent of time, and only change direction when the price reaches a predefined amount. Kagi charts uses a series of vertical lines to illustrate general levels of supply and demand. Thick lines (green for increases, red for falls) are when the price breaks above the previous high price and is interpreted as an increase in demand for the asset. Thin lines are used to represent increased supply when the price falls below the previous low. All counter moves are thin lines.

Kagi charts show the price action, not price movements. Developed by the Japanese in the late 1870’s, Kagi charts are similar to Point and Figure charts as they are dependent upon the price movement for new lines. Steve Nison in his book “Beyond Candlesticks” describes them in more detail.