Charting

Charting is the use of charts to plot a number of historical indicators related to stocks, commodities, and currencies, with the intent of predicting future prices. Some of the indicators that may be plotted by a chartist are:

  • Average price movement
  • Open interest
  • Price movements
  • Settlement prices
  • Trade volume

A chartist uses this information to detect trends, as well as buy and sell indicators, resulting in buy or sell orders.