Stock Charting 101 | Investments

Stock Charting 101

Written by Michael Swanson

Wednesday, 25 November 2009 02:14

by MichaelSwanson

Stock charts are important for your stock trading needs. When using stock charts you will need to be sure that you are handling them properly. There are various things that can be done for using these charts.

When checking out a chart you should watch for the trends that are presented on it. Trends can show how the general value of a stock has changed as time goes by. Trends can be ongoing or they can be in patterns over time. Either way you should see what trends are present so you can see what you should invest in.

The time frame of your stock chart is important to check out. A stock chart should list changes in a stock's value over a period of time. The time that is used will be very important based on your trading needs. For short term trades a chart that covers one week or less can work. For long term deals a chart covering many months can help.

The display used on a chart sounds simple but all options have their own benefits. A bar chart can give details on changes with a stock between daily open and close values and extremes. A line chart can illustrate stock values at specific times in one day. A candlestick chart use color-coded lines to signify changes in stocks. It helps to take a look at these three options.

Finally you should look to create imaginary resistance lines on a chart. These lines work in that they symbolize where you feel values of a stock will not go past. With these lines you can make predictions of your own on where values of a stock can go.

You can use all of these tips for your stock charts. Using stock charts is easy with the right processes. This is so you can get a better idea of what to do with investments.

DISCLAIMER: This article is provided as information only and is not to be taken as financial advice.

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