Stock Chart Trend

Reading charts can tell you where stocks are and what the money of the market is doing. You must be able to analyze a chart if you're going to know whether or not you should risk your money on the stock in the first place. It is what separates the newbie to the trading arena from the seasoned professional. There are a number of factors that you can ascertain by finding them on a chart; by analyzing this information, you can determine with increasing accuracy in which direction the chart will move.

When you look at a stock chart, ask yourself the following questions, provided by swing-trade-stocks.com:

* "What stage is this stock in?

* Is this stock in and uptrend or a downtrend?

* Is the stock at the beginning, middle, or end of the trend?

* How strong is the trend?

* Where are the trend lines?

* What wave is this stock in?

* What do the moving averages tell me?

* Was there a breakout recently?

* Is the chart "smooth" or "sloppy"?

* Are there any chart patterns?

* Are there wide range candles in the direction of the trend?

* Are there any gaps in the direction of the trend?

* Are professionals selling strength or buying weakness?

* Where are the support and resistance areas?

* Is this stock at a Fibonacci level?

* What does volume tell me?"

"I know it seems like a lot of information to try and keep track of but all of the above questions are essential to chart reading mastery!" says the website. "Now, copy and print out that list of questions and keep it handy next to your computer. Make several copies so that you can check off and make notes as you analyze your next chart."

"In the heat of battle, when emotions are running high, it is very easy to forget to look for some of the most basic things on a chart," says the site. "Go through the list one by one to make sure that you know how to answer the questions correctly. Don't worry, with practice, you will not even need to think about these things. It will become automatic. You will be able to read charts with lightning fast speed. In just a couple of seconds you will be able to glance at a chart and know all the answers to the questions above."

Discuss It!

Most Popular Articles

More