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How to interpret stock charts?

John Baldock


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Hi, thank you for asking! 

When you are only a beginner in the trading world and when you encounter stock charts, it may prove confusing and overwhelming in the beginning. But as you start learning and understand the basics, the charts start to look more natural for you.

Stock charts tell us a lot about a stock that we are interested in. It can tell us the volume of its trade, how big or small that trading volume is. It can also help us understand whether that stock will go upwards or downwards.

Two of the most important parts of a stock chart are axes, one which shows the time frame, and the other which shows us the past price action. These two combined, show us the history of a particular asset.

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