| Smart investors who want to buy shares in a | | | | market may move. There are other depictions such |
| company will make sure that they have done all the | | | | as the OHLC bar chart, but this does not give as |
| research possible to ensure that the stock pick they | | | | much detail as the candlestick patterns. |
| are interested in will see an increase in price overtime. | | | | Most technical analysts use candlestick stock charts |
| To do this requires that they look at as much | | | | to look for trends, reversals, or locate support and |
| information on the stock as possible. Stock charts will | | | | resistance points. These features, once identified, |
| provide the investor with information on the stock's | | | | allow them to give their clients stock tips and advise |
| past trading prices and volumes. This is of particular | | | | them on when is the best time to buy or sell stock |
| importance when it comes to technical analysis or | | | | picks. This will allow the client to maximize his profits |
| chart analysis. Most investors trading stocks on the | | | | by getting in at the earliest possible time during an |
| stock market today have some knowledge on stock | | | | uptrend, or sell out before the stock price starts to |
| picking. It is more than just buying a stock that was | | | | go down. Stock charts provide a wide range of |
| previously trading at $24 and now is at $17. This | | | | information for the investor, and should be analyzed |
| does not mean the stock is undervalued or cheap. | | | | along with any decision making. |
| It is important to know why the share price has | | | | If you are unfamiliar with how to use a stock chart, |
| dropped, as well as what was the conditions on the | | | | you should consider using a full service broker to help |
| stock market at the time of the decline. If the | | | | you. They will provide you with advice and |
| markets are bearish, it could be due to investors | | | | recommendations on which stocks are undervalued, |
| selling off their positions, in which case you could | | | | and do all the technical analysis to help build up your |
| take advantage of the decline if the bottom of the | | | | portfolio. For this full service, you will get charged |
| down trend has been reached. Using stock charts | | | | higher commissions. However, this only needs to |
| with candlestick patterns will allow you to identify | | | | temporary until you get yourself up to speed on |
| certain patterns that could indicate how a stock or | | | | investing in the stock markets. |