Below I have taken a stock chart of the NASDAQ Composite and labeled the main parts. Below the chart I will explain these parts and what they mean when it comes to reading a stock chart. Chart identification- Every chart is labeled and tells you what exactly you are looking at. So, if...
Stock charts also help you to know how a stock is likely to perform and what is going on in the broader market. Different Types of Stock Charts The above image is more or less what a standard stock chart will look like when you first open your brokers trading platform. You’ll have ba...
Stock chart analysis is not infallible, not even in the hands of the most expert technical analyst. If it were, every stock investor would be a multi-millionaire. However, learning to read a stock chart will definitely help turn the odds of being a successful stock market investor in your ...
How to Read Stock Charts Types of Charts Common Chart Patterns Where to Find Stock Charts Frequently Asked Questions The Bottom Line What Are Stock Charts? A stock chart is a visual indicator that provides a variety of data about a stock or fund, including its price plotted over a specific ...
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.
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.
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...
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...
•Double Bottom: Common Chart Patterns •Flat Base: Common Chart Patterns •Alternative And Add-On Buy Points 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 li...
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....