How To Read Stock Charts

How to read stock charts.

How to read stock charts. A stock may take huge dives and or make huge climbs. If you own the stock you get a small chunk of the profit. A dividend is when the company the board of directors decides to give a portion of its earnings back to its shareholders. Bar charts take the highest and lowest prices of the day plus the closing price of a stock to chart its trend. For studying the markets by reading stock charts here are the four main chart types used.

If you re going to actively trade stocks as a stock market investor equity trader an equity trader is someone who participates in the buying and selling of company shares on the equity market. Step 1 identify the trend line it is the orange line that is seen every time on the stock chart that goes up or downright. Similar to someone who would invest in the debt capital markets an equity trader invests in the equity capital markets and exchanges their money for company stocks instead of. Overview of how to read stock charts. In this article i will detail how to read stock charts.

I will buildup the chart like layers of a cake. Unlike other articles which show you everything at once and then detail the components. As we talk through each layer it will help you understand the significance of each item.