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 that takes place in the market as well as 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 they may be weekly, daily, hourly, transaction, "point-and-figure," and candlestick charts. It is customary in preparing ordinary daily stock charts to let the horizontal axis represent time, with the vertical cross-lines from left to right, thus standing for successive days. The vertical scale is used for prices, with each horizontal cross-line then representing a specific price level. The two types of scales may be distinguished at a glance: on arithmetic paper, equal distances on the vertical scale represent equal amounts in dollars, whereas on the semilogarithmic paper, they represent equal percentage changes.
