A stock chart is a picture of price history. With just a glance, an investor can quickly see the stock's past action and gain valuable perspective. Although there are several types of stock charts, the most popular one is called the bar chart. Others are the candlestick chart and the point and figure chart. The bar chart plots the open, low, high and close for each trading day.
Indicators only work well in one type of market, trending or non-trending.
None of them work particularly well in both environments. The reverse is true for a downtrend. Chart patterns Once a bar chart has been constructed over time, various patterns appear. Each tells a different story and some are more valuable than others. There are some very good psychological reasons behind each pattern and why they work.