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Reading A Stock Market Chart And What It Means

It may look like hieroglyphics to you but it is actually a stock market chart. All those numbers and information mean something but what are they? It is easy to read a chart for the stock market when you know what to look for.


While you are looking at a chart, look for the price direction next to the stock. This will be an arrow indication next to it. It will have an up or down arrow. This tells you if the stock is going up or down. If you see no arrow then it is not moving and this is called a consolidation.


Knowing how to watch the indicator you can now watch for trends. This is the amount the stock fluctuated. It is best to watch for twenty to fifty days. This indicator will give you its moving average, or how much it trends in this period.


When you have watched a particular stock you will see what the price resistance is. This is the typical number that the stock does not go past. When you find this number it will be the solid price of the stock. Watch and see, when you are learning, if you can tell what this number is.


Figuring a stock will help you know when to buy and when it is best to sell. You will not have to use the Force to see if you should do something with investment stock. Your knowledge of knowing the stock trends will help you realize the best course of action.


Before you know it you will be buying and selling. You will know the lingo and how to watch a stock with interest. It is a sound decision to be smart and have this knowledge before investing. Otherwise you might as well go to Las Vegas where you will have the same odds of success.

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