1. Bar charts (HLC / OHLC)– This is the most widely used chart and the default I use myself on this site. It is constructed to show four pieces of information: opening price (optional), closing price, high of the day, and low of the day. Looking at each day’s history, a vert...
If you’re going to actively trade stocks as astock market investor, then you need to know how to read stock charts. Even traders who primarily use fundamental analysis to select stocks to invest in still often usetechnical analysisof stock price movement to determine specific buy, or entry, ...
Stock charts are used to conduct technical analysis on investments. Investors can use charts for individual stocks, exchange-traded funds (ETFs), mutual funds, index funds, and other securities. By analyzing a chart’s trend line, trading volume, volatility, and the number of shares outstanding,...
To read stock charts you need to use stock charting software, select your chart type, configure your timeframe, determine price direction using trendlines and use indicators to estimate future prices.
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....
Stock Charts Tell You A Story When learning how to invest in stocks, stock charts can seem overly technical at first. Talk of moving averages, chart patterns, relative strength lines and other terms can scare off beginning investors. But put aside all the jargon of technical analysis to under...
As an example, let’s look at Apple (AAPL), one of the largest stocks by weight in the S&P 500. This chart shows the stock price was $190.69 at the market close on July 14, 2023. Closing price refers to the last price a stock traded for during regular market hours — 9:30 a.m...
Trends are one of the easier things to spot on a chart. When stocks are trading in a set direction, whether up or down, they are said to be trending. Above you can clearly see that Apple is trending higher for a few months. The trick with trending stocks is to tradewith the trend....
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.
Stock chart patterns for traders It's one thing to know what a chart is. It's another to actually know how to read it. As shown in the chart below, stocks that move up over a period of time with a series of higher highs and higher lows are essentially in uptrends; stocks that move...