ABSTRACT
Charts are the working tools of the technical analyst. They have been developed in a multitude of forms and styles to represent graphically almost anything and everything that takes place in the market, or to plot an “index” derived therefrom. They may be monthly charts on which an entire month’s trading record is condensed into a single entry, or weekly, daily, hourly, transaction, “point-and-figure,” candlestick, etc. They may be constructed on arithmetic, logarithmic, or square-root scale, or projected as “oscillators.” They may delineate moving averages, proportion of trading volume to price movement, average price of “most active” issues, odd-lot transactions, the short interest, and an infinitude of other relations, ratios, and indexes — all technical in the sense that they are derived, directly or indirectly, from what has actually been transacted on the exchanges.
