I have used many different chart types in my eight nine years of trading journey.
Some were really helpful to increase the win rate.
But some were kind of useless.
So, do you know which chart types are the best?
Do you know which one you should use and which one to avoid?
Well, I ranked the best and worst chart types I have ever used in a tier list.
The charts I’m going to put near the top of the list are the best, and the ones near the bottom are not that good.
Number 11.
The Volume Candles chart type is one of the best things I have seen in my entire trading journey.
Basically, you know how it can be difficult to tell which candle is strong and which one is weak?
Well, this Volume Candles chart type solves that problem.
You see, in this volume chart, the thickness of the candle changes based on the volume.
If the price moved up and the volume was high, then that candle will be a fat, thick one.
It’s like it eats McDonald’s every day.
You can see this candle as one with strength.
If the price moved up but the volume was low, then that candle will be a thin one.
It’s like it is starving and has no energy.
You can see this candle’s movement as weak.
With this Volume Candles chart type, you can avoid taking long trades after a weak upward move and avoid taking short trades after a weak downward move.
Beginner traders can find it really helpful!
So, I will put it in the S-tier.
Number 10.
When I saw Renko charts as a beginner trader around eight or nine years ago, I thought I had found the best chart type.
You know how the price stays in a range and there is a lot of random, nonsensical movement between the up and down moves?
Well, this chart type filters out all that sideways, random noise.
It only shows a green or red brick when the price has moved by a certain amount up or down.
Beginner me loved this clean chart.
But I later realized that the movement it filters out is really important to see the strength and weakness of the price movement.
So, I stopped using it later.
But beginner me found it really helpful for identifying strong reversal points.
If you have seen other Trading Rush videos, you probably remember that I recommended beginner traders to use Renko charts to draw support and resistance.
They are very good for that job.
So I will put it in the B-tier.
Number 9.
You might think Hollow Candles are just hollow when the price moves up and not hollow when the price moves down.
Well, not exactly.
As you can see here, there is a green candle that is not hollow.
You see, the candle’s color and fill are decided by checking if the current candle’s close is higher or lower than the previous close.
Normally, when the price opens with a gap up and then moves down, you see a red candle.
But the Hollow Candle type will show it as a green candle because it closed higher than the previous close.
Personally, in my entire eight or nine years of trading, I haven’t found any use for this chart type.
I mean, I can see the same thing—the price opening higher than the previous close—on other chart types as well.
So, I will put it in the D-tier.
Number 8.
Heikin Ashi is another chart that I thought I would use forever.
I loved it initially.
It basically smooths out the market noise and shows you a much cleaner price movement.
However, just like the Renko chart, it also filters out a lot of important price data.
Once you gain enough experience, you realize that you can identify a lot of things if you don’t smooth things out.
But this chart pattern can be really helpful to beginner traders for identifying the trend, support and resistance, and other price structures.
I will put it in the A-tier.
It is slightly better than Renko because Renko requires you to set the bar size.
Heikin Ashi doesn’t require any setup.
Number 7.
If you want a candle to be formed only if the price moves a specific number of points up or down, then the Range chart type is for you.
This might sound like the Renko chart, like how Renko bars appear after a specific up or down move.
But this range chart can also have tails below or above the candle.
Basically, if you want to filter out time-based noise but still want to see detailed price patterns, then the Range Chart is for you.
I will put it in the B-tier, next to the Renko chart.
Number 6.
If you want to see a green or red bar formed, only if the price closes beyond the previous high or low or beyond multiple previous high low, then the Line Break chart is for you.
I personally haven’t found this one that useful in my trading journey.
I mean, I can see the high-low breakout on some other chart patterns as well, and those charts even provide other info.
So, I will put the Line Break chart in the D-tier.
Number 5.
Bars are one of the popular chart types I have seen.
Basically, each vertical line shows the price movement between the high and low.
There is a small horizontal line on the left side showing the opening price.
And a small line on the right side shows the closing price.
They are very useful. Shows the same info as the chart types I’m going to put in the S tier soon.
But I personally don’t see a strong advantage in using this over some of the other charts I’m going to rank next.
So, I will put this in the D-tier. If I had actually used it enough times in my trading journey, I would have put it in the S tier.
Number 4.
This one looks like the Nokia snake game.
If you need a line chart that changes direction when the price moves by a specific amount, then the Kagi chart is for you.
It’s kind of like Renko.
So you can use it for identifying strong support and resistance.
But it has no strong advantage over Renko.
It also shows very little info compared to other chart types.
So, I will put it in the D-tier.
Number 3.
Point and Figure looks like tic-tac-toe, but wrong.
Basically, an X appears when the price moves up by a specific amount.
And an O appears when the price moves down by a specific amount.
It has similar advantages to Renko, Range, and Kagi.
You can use this if you want to see the X or O pattern form only after a specific price move.
I personally haven’t found much use for this one.
So, I will put it in the D-tier.
Number 2.
Sometimes I like to avoid all the candles and other charts and just look at the pure up-and-down price movement.
I use a simple line chart to do that.
It’s probably the second most-used chart type in my trading journey.
But being simple also makes it kind of useless.
I mean, I don’t use it when it comes to analyzing and taking trades.
So, I will put it in the C-tier.
Number 1.
The most-used chart type in my entire eight nine years of trading, the one you obviously know is the best but still decided to watch this video, the one that comes as a default on most trading platforms, is the Japanese candlestick chart.
I don’t think this one needs any explanation.
There are testing videos on the Trading Rush channel that show the win rate of candlestick patterns and how to use them to increase your win rate.
Check them out if you want to learn more.
I will put the candlestick chart in the S-tier.
Thanks for watching!