| Whether you are a beginner in the stock market or a | | | | and resistance levels, how are the volumes of the |
| seasoned player, it is always recommended that you | | | | stock, where are the trend lines etc. |
| should be able to interpret a stock chart. A seasoned | | | | The first and the foremost thing to understand |
| player is able to do that easily since he has been in | | | | about the stock charts are the trends. The trend |
| this field for such long time and can make out about | | | | direction can tell you whether the stock prices are |
| the trends of a stock by taking just one good look | | | | going up, down or without any particular trend. If |
| at its chart. But, it is very difficult for a beginner to | | | | there is no particular trend, this means that the |
| understand how to read a stock chart. In this article, | | | | consolidation stage is in progress. This is the single |
| I will try to give away the basics of reading the | | | | most important information you can get from the |
| stock charts. | | | | chart but still most of the time this gets overlooked |
| You pick up a financial newspaper or go to any | | | | by investors. |
| finance website; you will be overwhelmed to find | | | | Other important things which should be looked for |
| such kind of charts everywhere. So, what do you | | | | are the moving averages - short terms as well as |
| look for while looking at these charts? There are | | | | long term. You can use a 20 day moving average or |
| many things which can be analyzed if you look at the | | | | a 50 day moving average to get the short term and |
| charts carefully. Due to the amount of information | | | | long term stock trend. You can also find the support |
| the charts provide, these charts are used by a lot of | | | | levels and resistance levels of the stock. If you see a |
| analysts for doing technical analysis. | | | | relatively long term chart and make out a price which |
| Some of the answers which you can get through | | | | was not breached on the lower level, that level |
| these charts are - which stage the stock in, what | | | | denotes the support price. Similarly, on the upper |
| type of trend is there, is the trend starting or ending, | | | | side, this level is resistance price. These processes |
| what are the moving averages of the stock, is the | | | | are good indications of probable entry or exit points |
| chart sloppy or smooth, what are the support levels | | | | for that particular stock. |