Using Candlestick Charts


Your results may differ materially from those expressed or utilized by Warrior Trading due to a number of factors. We do not track the typical results of our current or past students. As a provider of educational courses, how to read stock charts we do not have access to the personal trading accounts or brokerage statements of our customers. Above you can clearly see there is a defined level of support at the $26.75 price and clear resistance at $29.50.

how to read the stock charts

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The set amount is called the “box size.” The amount of the box size differed depending on the stock and the individual investor’s preference. All reviews, research, news and assessments of any kind on The Tokenist are compiled using a strict editorial review process by our editorial team. Neither our writers nor our editors receive direct compensation of any kind to publish information on Our company, Tokenist Media LLC, is community supported and may receive a small commission when you purchase products or services through links on our website. Click here for a full list of our partners and an in-depth explanation on how we get paid.

What Is Forex Trading?

Don’t react to large drops or huge gains in a positive or negative way. You should be using this piece of the stock chart merely to see what’s going on. This is that blue line you see every time you Forex platform hear about a stock – it’s either going up or down right? While the trend line seems like common sense, there are a few things I want to call out so you can understand it in a little more detail.

  • A green bar that stands out as being really tall can indicate a turn from decreasing to increasing stock prices.
  • I’ve been a user for years and couldn’t imagine investing without StockCharts.
  • It’s just as easy to sell a stock at what you think is a line of resistance when the stock actually has much farther to climb.
  • If the interval is one day, the vertical bars show the stock’s price range for the entire trading day.
  • When you’re bowling, the ball bounces back and forth between these inflated barriers.

Learn step-by-step from professional Wall Street instructors today. A man who had long been considered a person of interest in the killing of a 21-year-old South Florida woman has been arrested after 38 years, officials said. Lowe had last been seen waiting for a train at an Amtrak station in Delray Beach, the South Florida SunSentinel reported. Trends are fast moving and powerful – The run from under $10 in June 2007 to $131 in October 2008 (1200%+) was no coincidence.

Invest In Stocks Build Your Portfolio

We commit to never sharing or selling your personal information. Wealthfront requires a $500 minimum investment and charges a very competitive fee of 0.25% per year on portfolios over $10,000. ‘s trading platforms, streaming news, and expert research. As you can see by the image, Apple started issuing quarterly dividends to its shareholders midway through 2012.

A crossover involves plotting a 200-day and 50-day moving average and finding where they intersect. When the 50-day average rises above the 200-day average it is a buy signal. When the 50-day average drops below the 200-day average it is a sell signal.

A key characteristic of pennants is that the trendlines move in two directions—that is, one will be a down trendline and the other an up trendline. Often, volume will decrease during the formation of the pennant, followed by an increase when price eventually breaks out. While a price pattern is forming, there is no way to tell if the trend will continue or reverse.


Forex trading involves buying and selling currency pairs based on each currency’s relative value to the other currency that makes up the pair. An Exchange Traded Fund is a popular investment vehicle where portfolios can be more flexible and diversified across a broad range of all the available asset classes. Learn about various types of ETFs by reading this guide.

how to read the stock charts

Weigh the pros and cons of each broker to make an informed decision. The ticker is usually found under a column titled «ticker,» or, in some cases, right next to the name of the stock in parentheses. Receive full access to our market insights, commentary, newsletters, breaking news alerts, and more. Investor Junkie does attempt to take a reasonable and good faith approach to maintain objectivity towards providing referrals that are in the best interest of readers. Each bar has two little “twigs” poking out, one to the left and one to the right. Some are near the top of the bar, some near the bottom, many are in between — there’s no discernable pattern.

What Exactly Is A Stock Chart, And How Does It Help You Analyze Stocks?

A prospectus contains this and other information about the ETF and should be read carefully before investing. Customers should obtain prospectuses from issuers and/or their third party agents who distribute and make prospectuses available for review. ETFs are required to distribute portfolio gains to shareholders at year-end. These gains may be generated by portfolio rebalancing or the need to meet diversification requirements. Additional regulatory guidance on Exchange Traded Products can be found by clicking clicking here. It’s important to remember that not any single part of a stock chart should govern your investing decisions.

Volume, Average Volume And Days Range

Volume is one of the most basic and beneficial concepts to understand when trading stocks. Volume is defined as, «the number of shares traded during a given period of time.» This means each time a person sells or buys shares of a stock, that is considered volume. Volume — Volume is extremely important as it helps determine market momentum. Each bar represents one day, and the red line going through the tops is the average volume over the last xx days . So, the taller the volume bar, the more shares of stock that were traded that day. Beta shows how volatile a stock’s price is compared with the stock market, which may be an indicator of how risky the stock is.

The emergence of app-based trading platforms has put investment into the hands of consumers . For those looking to invest on their own, the first—and often most crucial—step is to learn how to read stock charts properly. Here’s a rundown of stock market graphs and how the average investor can read them. The 200-day moving average is considered by most analysts as a critical indicator on a stock chart. Traders who are bullish on a stock want to see the stock’s price remain above the 200-day moving average. Bearish traders who are selling short a stock want to see the stock price stay below the 200-day moving average.

You can trust the integrity of our balanced, independent financial advice. We may, however, receive compensation from the issuers of some products mentioned in this article. Opinions are the author’s alone, and this content has Hedge not been provided by, reviewed, approved or endorsed by any advertiser. You can also usually choose to have the graph display the percentage changes in price, instead of the actual prices, if that’s what you want to see.

Cliff Natural Resources shows persistent resistance at $32.50. With four separate challenges of this level over a four-month period, we should expect any future rallies to stall at this price. The three «1»s show us how CVD stock found resistance at $88 three times before finally breaking through. Participating in the break would have yielded an actual return of 10% in only seven days.

In this example AAPL is the ticker used for the company Apple Inc. This graphic based on data from EV Volumes compares Tesla and other top carmakers’ positions today—from an all-electric perspective—and gives market share projections for 2025. Compared to the Norwegian fund, the CIC invests in a greater variety of alternatives.

Stock chart analysis is not infallible, not even in the hands of the most expert technical analyst. If it were, every stock investor would be a multi-millionaire. However, learning to read a stock chart will definitely help turn the odds of being a successful stock market investor in your favor. On the flip side, if the 50-day moving average crosses from above to below the 200-day moving average, this is referred to by analysts as a “death cross”. You can probably figure out on your own that a “death cross” isn’t considered to bode well for a stock’s future price movement. Such a strategy works best when applied to major stocks that are generally heavily traded.

The following stock chart of Fastenal offers a simple example of a descending channel. To help drive the concept home, here’s another example of basic support and resistance. Again, volume increases regardless if it is a buy or sell order. Time period — The X axis always displays the time period.

Author: Giles Coghlan

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