| If you want to read stock market trends better, | | | | and the divisions of time on its horizontal axis. |
| then it's time you learned how to read stock charts. | | | | Types of stock charts |
| You can surpass everyone's expectations by learning | | | | You cannot attempt to read a stock chart accurately |
| to read stock charts accurately and figuring out | | | | unless you know what type of chart it is. Basically, |
| exactly what they mean. Exactly seems to be asking | | | | there are three types namely: the Line Chart, the Bar |
| for too much, because we can only exact and | | | | Chart, and the Candlestick Chart. |
| extract so much information from charts, given that | | | | Of the three charts, the Line Chart is the simplest |
| they are affected by other variables such as | | | | and easiest to read. It plots the price on one axis and |
| economic recessions, turbulent politics, and changing | | | | the closing prices on the other. On the other hand, |
| trends. | | | | the Bar Chart reveals more than just the price at |
| Because most of the data in stock charts are | | | | which stocks were traded and closed. Aside from this |
| evaluated using predictive analysis, you can only do | | | | last closing price, it also shows the highest price and |
| so much with the information you gather. Your | | | | the lowest price at which stocks were traded. |
| readings are not 100% accurate, although you base | | | | To continue the data set by a Bar Chart, a |
| them on a lot of proven science and sound logic. You | | | | Candlestick Chart plots a wider range of prices from |
| have to supplement your information with other | | | | the highest to the lowest. These data are |
| reliable sources such as the consensus of other | | | | color-coded, and were recorded over a longer |
| experts, financial updates which are constantly fed | | | | duration of time. |
| online, and stock market news which are provided | | | | The secret behind the success of a stock chart is |
| daily for free. | | | | that extracting some data from it is both a science |
| Just how predictive can stock charts be? What | | | | and an art. Obviously, stock trading is not a very |
| information do they contain, and what data can we | | | | exact science because there are only some facts |
| exact from them to somehow extract an idea oh | | | | you can gather from it while there are many factors |
| now the trend will be? | | | | which render it almost unpredictable. However, it |
| A stock chart | | | | becomes an art when you become skillful in reading |
| A stock market chart is made up of data regarding | | | | its flow and pattern. The more accurately you read a |
| the prices and values of stocks. These prices and | | | | chart, the more intelligently you apply it to the future. |
| values have been recorded and monitored closely | | | | The better you understand what the trends are |
| over a certain period of time. As to the manner in | | | | showing, the better you know how to buy stocks at |
| which they are plotted, visualize the different | | | | a winning price and in a timely fashion. |
| gradations of price on the vertical axis of your chart | | | | |