In Sect. Data visualization discussed some method to visualize data. Now we show some more specific charts useful for financial market.
Market forecasting simply make use of the daily closing price. The following five pieces of information, listed here, are of particular interest to the technical analyst.
- Opening Price
- Closing Price
- Day High
- Day Low
Using more than just the daily closing price allows the analyst to capture the state of the market. Read this article about this chart.
- Snippet from Wikipedia: Candlestick chart
A candlestick chart is a style of bar-chart used primarily to describe price movements of a security, derivative, or currency for a designated span of time.
Let us consider a small Python script which generate data for CandleStick chart and show it:
The output will look as this:
Time series charts are discussed in Section Timeseries.