There are 4 types of charts available:
From left to right:
- Bar chart
- Candlestick chart
- Line chart
- Area chart
Bar Chart: Bar charts expand on the line chart by adding vertical bars that show price ranges for each day. These bars show opening and closing prices with horizontal dashes on the sides of each bar. The opening price is the horizontal dash on the left and the closing price is on the right.
Candlestick: Like bar charts, candlestick charts have a vertical line that shows the price range for a given time period. The main difference is a wide bar that shows the difference between the opening and closing prices. Multicolor shading also shows whether the price ended higher or lower than when originally acquired.
Line Chart: Line charts are the most basic type of chart because they represent only closing prices over a set time period. The line forms by connecting closing prices over a timeframe.
Area Chart: An area chart is basically a line chart, but with a shaded "area" underneath. Easy enough, right?
(The previous excerpts were taken from Investopedia on June 8, 2017 and lightly edited)
On the chart, there is a vertical axis & a horizontal axis.
- The vertical axis represents the underlying stock price. As the value of stocks change, you will see thin horizontal line move up and down the chart, indicating a change in the stock price. The stock price is used to calculate how much buying power you need to buy or sell 100 shares, which is the standard amount of stocks that you can trade.
2. The horizontal axis represents the time frame. In SpeedTrading™, we compress real market data and then stream it ‘live’. Essentially, you're trading weeks of data in approximately 5 minutes!
There are tools called "indicators" and "drawing tools" that you can use to assist you in making your trading decisions.
Here's the list of trading indicators that you can choose from. Use these! They are very helpful to incorporate into your trading!
Click here to learn more about what these indicators actually mean and how you can use them. This should help!
These are the drawing tools.
To learn more, please visit Investopedia.
Buying, selling, and closing:
- Buy: If you click ‘buy’ or press the up arrow key, you automatically buy 100 shares of the underlying stock (if you have enough Buying Power).
- Buy Max (Green Max button): It will automatically buy the maximum possible shares given the buying power you have at the particular moment.
- Sell: If you click ‘sell’ or press the down arrow key, you automatically sell 100 shares of the underlying stock (if you have enough Buying Power).
- Sell Max (Red Max button): It will automatically sell the maximum possible shares given the buying power you have at the particular moment.
- Close: If you click ‘close’ or press the spacebar, you are 'closing out' your shares, leaving you in a neutral position.
*Note: Buy/ Sell Max will also reverse your current positions. For e.g., if you are currently in a long position, hitting Sell Max will close all your long positions and then turn your positions to maximum short position. And vice versa.
**Clicking the '?' will show you they keyboard shortcuts you can use to 'Buy', 'Sell', 'Max' and 'Close'
Buying Power, equity & shares:
- Buying power: Everybody will start the event with $100,000. Buying or selling shares will reduce your buying power. You will not be able to click 'buy' or 'sell' if you have insufficient Buying Power to buy or sell 100 shares. Close one or more of your existing positions to increase your buying power.
- Equity: Equity represents your performance and determines the winner of each event; the trader with the highest equity wins! At the end of each event, you will see a graph with your equity curve, the average equity curve, and the winner's equity curve.
- Shares: "Shares" represent the amount of shares that you hold or owe. If the number is positive, you hold them. If it's negative, you owe them, but this only happens when you short sell, which means that you sell shares you don't own when you think the market price is about to plummet.