Data visualization is extremely important for analysis of the stock market. These days a major bulk of share trading is done online and most trading portals feature charts in order to enable their customers make an informed decision. Usually these charts are real-time charts that display second by second change in value of stocks.
The reason why people look up charts before making an investment decision is that charts help in analysis of prevailing trends. With experience people learn to identify uniformity in patterns of rise and fall in value of stock prices. This gives them an intuitive edge and therefore they are able to predict the state of the share market.
Line charts have been a staple mode for depicting the long term variations of stock prices. Lines help in making minor differences apparent, even to someone who is scanning a chart without much attention. While line charts may be adequately suited for analyzing the trend of stock prices, other forms of data visualization are needed for making an in-depth analysis of a person's investment portfolio.
Pie charts are ideally suited for visualizing the entire investment portfolio as they help in identifying the major stakes. To ascertain the profitability of a series of recent transaction - a column chart may be used. With a set of two columns showing the purchase price and sale price of each stock, it becomes easier to analyze the magnitude of gain or loss.
Most trading portals provide charts to aid in analysis; however, some people prefer to do a wider survey by subscribing to RSS feeds on leading financial analysis sites. Analyzing the huge chunk of data collected this way is humanly impossible. So, to aid in proper analysis people can use data visualization tools that require one time configuration and can be repeatedly used for generating charts. This is not possible with regular spreadsheet based charts, as something more versatile is required. Flash based charting component can be used for this purpose as these tools require one time configuration which can be repeatedly applied to different sets of data. XML based charting tools are ideal as they help in generating high quality charts with minimum effort.