How to Read a Stock Chart

How to Reada STOCK CHART Stock charts are one of the bases for stock analysis and reading stock charts can be confusing. Here's how to read charts like a pro in order to take better decisions. A SNAPSHOT C&C NASDAQ DOW S&P500 They provide a snapshot view of the changing 12,400 A +0.45 stock price over time and various other pieces of information. YESTERDAY TODAY BUSINESS DESCRIPTION 28 JAN DAILY WEEKLY MONTHLY INTRADAY These charts typically include the following information: Daily, Weekly, Monthly, and Intraday stock charts display both fundamental and technical data. BUSINESS DESCRIPTION STOCK SYMBOL v STOCK EXCHANGE v PRICE TRACKING V WEB ADDRESS LINK V TRADING VOLUME V DAILY PRICE INDUSTRY GROUP (HIGH/LOW/CLOSE) TECHNICAL ANALYSIS Using stock charts, analysts and investors can gauge the recent and historical prices of a stock. This is used in order to make predictions on future price movements. A price that a stock can't seem to break through. This will usually LEVEL OF RESISTANCE hold true for some period of time until an exceptional piece of information comes to light, driving stock over the resistance or LEVEL OF SUPPORT under the support. A price that a stock can't seem to drop below. E HISTORICAL RECENTMOST GOOGLE EXAMPLE This chart shows Google (GOOG) stock from its inception to 2008. GOOGLE'S NEW LINE OF RESISTANCE GOOGLE HITS ANOTHER LINE OF RESISTANCE. LATER THIS BECAME A LEVEL OF SUPPORT. GOOGLE'S FIRST LINE OF RESISTANCE FROM THE TIME OF ITS IPO UNTIL 2005 RULES TO REMEMBER Major events in the often cause technical analysis to go haywire. 2004 2005 Apr Jul Oct 2006 Apr Jul Oct 2007 Apr Jul Jul Oct In this case, past performance becomes a less reliable indicator of future price movements. An otherwise stable stock price can always dip or increase based on systematic events in the economy. ART Vs. SCIENCE Past performance is never a Patterns exist, but identifying Observing the 6 month trend guarantee of future results. their meaning and what they is a good clue as to the say about the future is more of general health of a stock. an art than a science. TIM TIMOTHYSYKES COM SOURCES: http://www.investopedia.com/university/charts/ http://finance.yahoo.com/echarts?s=GOOG http://www.thesimpledollar.com/how-to-read-a-stock-chart-in-just-five-seconds/