Stock Charts are the heart of technical analysis. They provide the graphical view of market and stock data. To successfully trade stocks, a trader should consult stock charts and check for patterns and trend lines that will change or enforce a current
market condition. Prior to the advent of the personal computer, technical analysts had to prepare their stock charts manually from old-time ticker tapes. Today’s traders can choose from a variety of software companies that offer charting in all forms. Some stock charts are free, such as www.bigcharts.com. Some sites charge a monthly fee for data downloads, while the more complicated day trading software programs charge a fee for the software in addition to the monthly fee for data downloads.
Depending on a trader’s preference, stock charts can be viewed in several visual forms. Candlestick Charts display more information about price and trading patterns than the others. However, Line, Bar, and Point and Figure chart formats are available.
If you want to trade stocks successfully in today's market, you will need to learn how to use stock charts. Fundamentals are critical but are only one portion of successful trading analysis. If you want to make money in the stock market, stock charts are essential to your trading tools.
TechniTrader®, the educational division of Decisions Unlimited, Inc., is strictly an educational service for the serious investor and trader. It does not represent, nor is it sponsored by any vendor, provider, or broker. We are an independent educational service.
Copyright © 2008, Martha Stokes, C.M.T. & Howard Johnson. No part of this web site may be reproduced in any form without expressed written consent.
