A stock chart is a string plotted on a graph for stock prices versus specific time frame. Once you are familiar with technical analysis, a concept used in identifying stock movements, then you could find the technical stock chart a more useful tool used in technical analysis, in-fact chart formation is most important aspect of technical analysis.
If you want to make stock investing, or to do day trading or online stock trading you definitely need to thinks about stock price chart formation technical pattern for your above help in making a vice decision. There is a big community in stock market who strongly believes in stock chart pattern in-fact maximum of them use it on day-to-day basis.
Stock price chart helps in many way giving you a perfect view of price movement on per hour, per day, per week, per month, and so on basis to make a exact decision.
The above chart represents the Dow Jones index chart for the period of six months. The vertical line i.e. y-axis represents the price scale and horizontal line i.e. x-axis represents the time scale. One can find an easy method to detect the support level for Dow Jones index just by viewing the previous supported price at which point the Dow Jones was bounce back.
There are also various methods by which the stock trader can get broader idea about the support level and resistance level of stock by gaining detail knowledge of stock chart pattern study, which I will put in front of you in more details in my coming postings. In short there are various stock charts which a stock trader needs to know and they are
Line chart
Bar chart
Candlestick chart
Point and figure chart
Price scaling
Tuesday, January 1, 2008
Stock Chart - Technical Analysis Tool
Saturday, October 27, 2007
Stock investor information
There are separate categories to define in stock trading - stocks investor and stock trader.
1. The first being long term stock investor. They normally buy and hold a stock position for couple of years to almost endless period. They may do some research on a stock before buying, maybe checking out some of the fundamentals such as the PE. ratio (price to earnings), valuations, dividend paid, market capital, or market analysts recommendation but to be a successful stock investor in stock market one much have a good fundamental and technical knowledge by which he can determine at which level which stock to buy and at which level to sell by making good profit.
The fundamental analysis knowledge means that the stock investor should have to know about the valuation of any particular stock, PE ratio, market capitalization, product, % of market that particular company hold etc. Fundamentalists study the cause, while technicians study the effect. "Price" is the final result of all forces that can affect a stock. Price even discounts the future, unknown news, while fundamentals reflect the past. It is because of this reality, we often see tops being made on good news and bottoms being made on bad news.
2. The second category consists of "stock traders." They hold a stock position for a few days or weeks or a month at the most. This group tends to treat the market as a business. They are not interested in fundamentals like the stock investor category. They are more interested in a stocks price movement, which they can determine by technique chart. When the people of this category make a stock purchase they know exactly where the exit points are. Their profit and loss points are predetermined. This group is guided by a set of predetermined rules, when a rule is met a reaction takes place either buying or selling.
Technical Analysis is basically the study of Price Chart, undertaken to get an idea about future price action of any traded stock. A Price Chart plots the quotes of a stock traded on a stock market. All past\present\future news relating to a stock, together with stock investors' opinion about it, determines the price of the stock on the trading floor. The "Value" discounts everything; therefore study of anything else is unnecessary. Technical Analysis comprise of a variety of techniques to study such price action over a period, by which stock trader can make a good decision at which price the shock has to buy and at which price it has to be sold. If stock trader is perfect in these things then that stock trader can make decent money in stock market.
How Technical Analysis helps stock investors and stock traders?
With the help of Technical Analysis, the stock investors and stock traders can enter the stock (long or short) when it starts trending, instead of locking their money during the periods of consolidation. Traders may look for such trending moves in daily (or shorter) charts, while the investors may look for such trending moves in weekly/monthly charts. Volatile market trading strategies are appropriate when the trader believes the market will move but does not have an opinion on the direction of movement of the market. As long as there is significant movement upwards or downwards, these strategies offer profit opportunities. A trader need not be bullish or bearish. He must simply be of the opinion that the market is volatile.
3. The third category consists of day traders. This category has all the characteristics of the 2nd group except they leave nothing to chance. All positions are closed before the end of the day, buying and selling without hesitation, according to their guidelines, strictly 100% business.
Uptrend continues in Stocks Market
Saturday October 27, 2007
US stock market ended higher on Friday after having a volatile week; however technology stock rose higher on Friday’s stock market trading session as Microsoft declared whopping 23% jump which was mostly driven by brisk sales of the new Halo 3 video game. Microsoft shares raised $3.04, 9.50% to end at $35.03. Stock market investor also showed good interest in financial stocks after mixed bags of number in major blue chip companies.
The Dow Jones ended the week up 284.68, or 2.11% at 13,806.70. The Standard & Poor's 500 index ended up 34.65, or 2.31% at 1,535.28. The Nasdaq composite index ended up 79.03, or 2.90% at 2,804.19.
At the present time it clearly seems like stock investors are eagerly waiting for Fed’s decision on interest rate cut at their next week meeting which will bring cheer to stock market.
eBay stock seems good for me from stock trading point of view at this point as the ebay stock chart is showing some good strength.
