How To Read Stock Charts

Unlike other articles which show you everything at once and then detail the components.

How to read stock charts. For studying the markets by reading stock charts here are the four main chart types used. If you own the stock you get a small chunk of the profit. How to read stock charts. Bar charts take the highest and lowest prices of the day plus the closing price of a stock to chart its trend. 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.

As we talk through each layer it will help you understand the significance of each item. 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. The essentials of the stock chart need to break down and key things should be focused on reading the stock chart. At the bottom of the chart you ll see if and when the company issued a dividend as well as if there was ever a stock split. In this article i will detail how to read stock charts.

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. A dividend is when the company the board of directors decides to give a portion of its earnings back to its shareholders. A stock may take huge dives and or make huge climbs.