Stock charts are widely used to show quantitative data values such as one is looking at 4 different prices for each data point where one is concerned. This can for instance be used to show stocks historical close, open and, max and min price over a given day. Hence, the name Stock charts (or Stock graph). A simple example of a stock chart using data from a trading day would thus look something like this:
To understand how to use stock charts, it is first necessary to have a basic knowledge of how they are normally used. Most charts are created using ‘bells and whistles’ which are basically just visual ‘ink’. These are the more common ‘signals’ that traders use to indicate when to enter or exit a particular trade. One such common indicator is the ‘heads up’ (a spike) indicator, where a price spike is suddenly seen to occur. This is used mainly by technical analysis and fundamental analysis alike.
Another common indicator that is found in most stock charts is the ‘trend line’. This is a line that is drawn that indicates a possible direction for the price of a stock or commodity over a given period of time. It can also be used as a gauge of market sentiment within a certain industry such as in the oil and gas sector over recent months. Trend lines are therefore very important to both short-term and long-term investors. This is because traders looking to enter into a trading position may want to look to see if the trend line is pointing in the desired direction.
Most technical analysts focus on the interpretation of stock charts as a tool to help them predict market behaviour and in turn make more money by entering successful trades. The beauty of this method is that it is completely based on the data available. This means that anyone with even little experience of trading can still develop profitable trades and profit from the markets.
There are many ways that investors choose to interpret their stock charts. Some prefer to analyse their stocks through the use of technical analysis techniques such as moving averages, strength index and trend lines. They then take the result of their calculations and predict where the market will go before it happens. These stock charts allow them to make good decisions about what stocks to invest in as well as when to sell them. Others choose to use technical analyses using support and resistance indicators as well as other kinds of technical analysis tools.
As with all market analysis platforms there are different types of stock charts available. Many traders choose to use RCTPA (Reverse Correlated Time and Price Analysis) and moving average crossovers (MACD) as their favourite trading analysis tools. These have proven popular tools for traders around the world thanks to their ability to provide valuable information in real time. Although they can only provide data so far, they are still considered to be some of the best charts available because they can alert traders to changes in the market almost instantly.
Another type of stock charts that traders are using is the bar chart. This type of chart has a basic layout consisting of a couple of line graphs representing the price and volume of the market. There is usually a legend on top of the graphs that gives further information on the highs and lows. Because these stock charts don’t have any visual interpretation, it is up to the trader to interpret their own findings to know when to buy or sell.
If you would like to trade the markets without the need to spend long hours analyzing your trades through your computer monitor then you should consider getting hold of some of the best stock charts available. Some of the online brokers who offer these charts for free are Diversified Trader, TradeStation Forex. These are just a few of the online brokers who offer these tools for free. If you want more information about the best stock charts then you could read review after review of these products until you find the one that suits your trading style. As long as you get a free demo version of one of these online stock trading software programs before you make a commitment to using it you should be able to see which one is the most suitable for you.