How To Read Stock Charts

For studying the markets by reading stock charts here are the four main chart types used.

How to read stock charts. Candlestick charts look a bit more complex but typically use clear or green boxes to. 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. If you own the stock you get a small chunk of the profit. As we talk through each layer it will help you understand the significance of each item. A dividend is when the company the board of directors decides to give a portion of its earnings back to its shareholders.

How to read stock charts. A stock may take huge dives and or make huge climbs. The essentials of the stock chart need to break down and key things should be focused on reading the stock chart. Bar charts take the highest and lowest prices of the day plus the closing price of a stock to chart its trend. I will buildup the chart like layers of a cake.

In this article i will detail how to read stock charts. 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. 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.