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Lisa O'Neill

How to read stock charts?

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Hello, thank you for asking! 

The first important thing about stock chart reading is to identify the type of chart. They can be a bar, candlestick, line, and point and figure charts. The second thing is that an analyst or a trader should have a basic understanding of components on charts, such as summary key, time period, moving averages, volume, and daily trading average.

 

Volume is one of the most important parts of stock charts, as it represents the number of stocks traded, whether it is a purchase or a sale. The importance of tracking volume is to recognize the shift of resistance and support lines. By knowing the total volume on a day, you can understand the power of influence on a given stock and how much of “real money” are behind specific market moves.

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