What is typically represented on a price chart in market analysis?

A price chart in market analysis predominantly illustrates market movements and patterns. It visually represents the historical prices of a security over a specific time period, enabling analysts to identify trends, support and resistance levels, and various chart patterns such as head and shoulders, flags, or triangles.

By studying these movements and patterns, traders and investors can make informed decisions regarding potential future price actions based on the past behavior reflected in the chart. Price charts do not directly convey investor sentiment, economic forecasts, or the impact of financial news, although the interpretations made from the charts may give insights about those elements indirectly. Understanding the historical price movements and patterns is fundamental for analyzing market behavior and anticipating future price shifts.