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How to read stock charts?

Jordan Maddison


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Hi Jordan,


When taking interest in investing one of the crucial skills for understanding and being successful in investing is ability to read stocks.

When reading a Stock Chart it is important to take notice of Price and Time Axes, as they signify the value of the stock changed during a specific time period.
Next is Trend Line which tracks the change of value of a specific stock through previously mentioned Axes, it is there to highlight value change through time period.
Trading Volume is usually located on the bottom of the chart and it shows drops or rises in stock prices, when the trend bar is green the value is rising, when it is red it is falling.
Lines of Support and Resistance, Support line is usually the line below which stock never falls through, while Resistance line is the line which is upwards from the stock and it shows the cap value of the stock, which if breached becomes a new support line and a new Resistance line is established

These are the basic information which you may encounter when reading a Stock Chart, their goal is to give you a perspective of possible increase or decrease in value of a specific stock.

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