Stock Chart is one of the essential tools for securities trading. This chart details the rise and fall of the stock's price as time passes by. The stock chart contains data on the price and value of stocks which have been monitored and recorded over a specific period of time. To visualize this concept on a chart, think of prices as being plotted on the vertical axis and time as being indicated on the horizontal axis.
Before you attempt to read a stock chart, you should know what type it is. There are basically three types of stock charts, namely the line, bar, and candlestick charts. Among these three, the Line Chart is the simplest and most basic display. It indicates prices on one hand and specific times when stock prices were closed on the other. It comes in handy when you only have limited information available, and you are waiting for the rest to come in. With the upgrades comes the Bar Chart which indicates both the highest and lowest prices at which stocks were traded as well as the last price at which they were traded. You get more recent and timely information this way. Similar to the Bar Chart, the Candlestick Chart records prices ranging from the highest down to the lowest, and these have been recorded over a longer period of time. To make distinctions, the values are coded by colors. Now that we've given figure to stock charts, you have to figure them out and give them greater meaning by observing current trends and doing some market research.
The first and the foremost thing to understand about the stock charts are the trends. The trend direction can tell you whether the stock prices are going up, down or without any particular trend. If there is no particular trend, this means that the consolidation stage is in progress. This is the single most important information you can get from the chart but still most of the time this gets overlooked by investors.
Many people like to view online updates of stock prices. According to them it is a more convenient method to follow. The green and red signs indicates points up and points down for displayed stocks results. Thus, advanced online tools such as these, real-time stock charts or commodity charts, have made it much easier for even novices to understand.
Before you attempt to read a stock chart, you should know what type it is. There are basically three types of stock charts, namely the line, bar, and candlestick charts. Among these three, the Line Chart is the simplest and most basic display. It indicates prices on one hand and specific times when stock prices were closed on the other. It comes in handy when you only have limited information available, and you are waiting for the rest to come in. With the upgrades comes the Bar Chart which indicates both the highest and lowest prices at which stocks were traded as well as the last price at which they were traded. You get more recent and timely information this way. Similar to the Bar Chart, the Candlestick Chart records prices ranging from the highest down to the lowest, and these have been recorded over a longer period of time. To make distinctions, the values are coded by colors. Now that we've given figure to stock charts, you have to figure them out and give them greater meaning by observing current trends and doing some market research.
The first and the foremost thing to understand about the stock charts are the trends. The trend direction can tell you whether the stock prices are going up, down or without any particular trend. If there is no particular trend, this means that the consolidation stage is in progress. This is the single most important information you can get from the chart but still most of the time this gets overlooked by investors.
Many people like to view online updates of stock prices. According to them it is a more convenient method to follow. The green and red signs indicates points up and points down for displayed stocks results. Thus, advanced online tools such as these, real-time stock charts or commodity charts, have made it much easier for even novices to understand.
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