Baseline Chart in Stock Market: A Complete Guide

Baseline Chart in Stock Market: A Complete Guide

Simplify your trading decisions with this powerful visualization tool.

📊 What is a Baseline Chart?

A baseline chart is a price visualization tool that highlights whether a stock is trading above or below a chosen reference level. Instead of raw prices, it focuses on relative performance, making it easier to track market trends.

Baseline chart example with red and green areas showing stock performance relative to baseline
Example of a Baseline Chart: Red indicates price below baseline, Green indicates price above baseline.

⚙️ How Does a Baseline Chart Work?

It all starts with a baseline value — either the midpoint of the visible range or a custom level chosen by you.

The formula is simple:

% Change = (Price – Baseline) / Baseline × 100
  • Green area → Price above baseline (positive performance)
  • Red area → Price below baseline (negative performance)

🧮 Example of Baseline Calculation

Suppose the baseline is set at ₹560:

  • At ₹615 → ((615 - 560) ÷ 560) × 100 = +9.8% → Green
  • At ₹500 → ((500 - 560) ÷ 560) × 100 = -10.7% → Red

This instantly reveals strength or weakness without analyzing candlesticks.

🚀 Why Use Baseline Charts?

Baseline charts are loved by traders because they strip out noise. They provide:

  • ✅ Quick view of trend shifts
  • ✅ Easy outperformance/

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