Constructing OHLC Bar Chart and Candlestick Chart
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Questions and Answers

What is the primary limitation of a line chart?

  • It provides too much information
  • It is complicated to construct
  • It is only useful for advanced traders
  • It does not provide visual information of the trading range for individual points (correct)

What is a benefit of using line charts?

  • They provide a clear visualization of the stock price movement (correct)
  • They are not ideal for identifying trends
  • They are difficult to construct
  • They are only useful for advanced traders

What is required to form the price plot for each period of a bar chart?

  • The high, low, and close prices (correct)
  • The high and low prices
  • Only the closing prices
  • The opening and closing prices

What is a characteristic of line charts that makes them useful for beginner traders?

<p>They are easy to use and help teach basic chart reading skills (C)</p> Signup and view all the answers

What is the primary advantage of line charts over other chart types?

<p>They provide a clear visualization of the stock price movement (A)</p> Signup and view all the answers

What type of chart is considered the most popular charting method?

<p>Bar chart (A)</p> Signup and view all the answers

What is the main difference between a line chart and a bar chart?

<p>A bar chart shows more information than a line chart (B)</p> Signup and view all the answers

What can be identified using a line chart?

<p>Key support and resistance levels, trends, and recognizable chart patterns (A)</p> Signup and view all the answers

What is the purpose of constructing a line chart?

<p>To visualize the direction of prices over a set period of time (B)</p> Signup and view all the answers

What is a limitation of using line charts for technical analysis?

<p>They do not provide enough information about the trading range (D)</p> Signup and view all the answers

What is a benefit of using bar charts over line charts?

<p>Bar charts provide more information about the trading range (B)</p> Signup and view all the answers

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