Price and volume are the two most important areas to look at when learning how to read stock charts, whether you're buying or selling. Here's how you can piece together price and volume action to make more informed investing decisions....
Daily trade range- Just like volume, each red or black vertical line on the chart represents one independent trading day. If the bar is red, that means the stock or in this case the index was DOWN overall on the day compared to the previous day. Black bars mean that the stock was eve...
The volume, supply, and demand section will cover all of this.How to Read a Stock Chart in 7 Easy Steps Open a stock chart. Select a chart type. Choose a chart timeframe and scale. Assess price direction with trendlines. Use trendlines to determine price patterns. Add chart indicators. ...
Volume appears on nearly every stock chart that you’ll find. That’s because trading volume is considered a critical technical indicator by nearly every stock investor. On the chart above, in addition to showing the total level of trading volume for each day, days with greater buying volume ...
Basic stock chart terms to know Open, high, low and previous close. The open is the first price at which a stock trades during regular market hours, while high and low reflect the highest and lowest prices the stock reaches during those hours, respectively. Previous close is the closing pri...
Keeping in mind these other aspects of stock investing, let's focus on how to read stock charts and understand technical analysis. Quick Links •Stock Charts Tell You A Story •What's In A Stock Chart? •Follow The Funds: Track Price & Volume With Technical Analysis •Spot Support ...
Read this article because it gives the 50,000-foot view on reading stock charts, a fundamental skill for enhancing your trading decisions in the stock market.
Although most stock charts are pretty basic, understanding how to read them can be quite intimidating for some traders. What is a Stock Chart A stock chart is a set of information on the stock of a particular company that generally displays details about tradingvolume, price changes, historical...
The Volume Graph At the bottom of each stock chart is a bar graph of the stock'svolume of shares traded. The height of each bar shows the volume for one day. Trading volume can provide clues to price changes. For example: When a stock is in an upward trend or a downward trend and...
You will notice the letter “D” on the chart above. This indicates when quarterly dividends were paid. The colored lines at the bottom indicate the volume of shares being traded. Compared to what? Looking at the trend in the share price of a stock over time can tell you a lot. In th...