Ever Lose Your Car Keys?
Has This Ever Happened to You?
You’re rushing out the door, late for an appointment and your keys are nowhere to be found. You ask your spouse. Look on your desk, dresser, the kitchen counter and search through pockets. You get more and more agitated as each minute passes. They have to be “somewhere.” Where are those darn keys?
The Keys are Often Right in Front of Your Eyes
Looking for the keys to why a given stock is ready to make a move or not, is often just as hard to find as your car keys. You follow a stock for a long time. You do your research into the company and your due diligence on their financials. You “know the industry,” because you worked in it your entire career. Analysts recommended it and yet you feel like something is missing.
Are you missing some key piece of information that will support your research? Is there any way to feel better about the timing of your move? Is there any way to confirm or refute your research? There are many technical tools available and depending on whom you ask, some are better than others are. Technical traders often use charts and tools to confirm their research
Technical Analysis Starts with Charts
For technical analysts, it all starts with charts. Charts are a valuable tool for understanding the market as a whole, indexes, sectors, individual stocks, comparing one stock to another and more. To navigate the often very rough and ugly seas of the stock market, traders must understand how to read charts.
Charts record the market and a stock’s history. They highlight trends, point out variations in current conditions, and serve as a roadmap to what is happening. Every experienced trader uses charts and technical analysis to gather information, evaluate conditions, and make decisions based on what the charts reveal.
Reading Stock Charts
At the most basic level, stock charts record price and volume history to help traders determine when a stock is increasing in value or ...