Gold price chart is a sequence of gold prices plotted over a specific time frame. The x-axis (horizontal axis) denotes the time and the y-axis (vertical axis) denotes the gold price scale . Gold prices are plotted from bottom to the top along the y-axis. Technical analysts or chartists use gold price chart to analyze and forecast future gold price movements. The time frame used for forming a chart depends on the compression of the data: one minute, ten minutes, one hour, four hours, one day, one week, one month, three months or one year data.
Investors usually focus on gold chart made up of one day data to forecast short-term gold price movements. The shorter the time frame the data is, the more detail that is available. The long on detail data, short-term charts can be volatile and contain a lot of error. Traders usually spot on one week and one month gold chart to long-term gold trends and long-term gold price movements prediction. Because long-term charts cover a longer time frame with compressed data, gold price movements do not appear as extreme and there is often less error. Some traders might use a combination of long-term and short-term gold price charts. Long-term charts are good for analyzing the large picture to get a broad perspective of the historical price action. Once the general picture is analyzed, a one day gold chart can be used to spot in.
The most four popular patterns for showing gold price chart data.
1) Gold Chart Line Pattern,
2) Gold Chart Bar Pattern,
3) Gold Chart Candlestick Pattern
4) Gold Chart Point and Figure Pattern.
There are many different charting methods are available, one technique is not necessarily better than the other. The data may be the same, but each method will provide its own unique analysis, with its own benefits and error. Some signals that are available on candlestick gold chart may not show on bar gold chart. However the data is the same and gold price data is the same. It is the analysis of the gold price action that separates successful traders from not-successful traders. The choice of which charting method to use will depend on individual trader styles. Once you have chosen a specific charting technique, it may be the best to concentrate with it and learn how best to read the signals. Switching back and forth may cause confusion of your gold price analysis.
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