Using Stock Market Charts

Using stock market charts help in analyzing market trends and stock performances thus aiding better investment decisions.

About stock market charts:

stock market

stock market (Photo credit: 401(K) 2013)

Stock market charts are essentially diagrammatic representations of the market performance in respect of certain influencing factors of the capital market and the money market coupled with the performance of big companies in an economy. These charts actually reflect the investment environment of an economy. It is important for one to know how to use stock market charts since this actually would help the investor to make decisions regarding whether to put his or her hard earned money in a particular trade so that higher profits are reaped.

Further intricacies:

English: TEDPIX Index and value of share tradi...

English: TEDPIX Index and value of share trading, Tehran Stock Exchange (2000-09). Label keys: TEDPIX is TSE’s Dividend & Price “total return” Index. Nota Bene: Some notes on the chart mention TEPIX, TSE’s All-Share Price Index (not to be confused with TEDPIX). Source for raw data: Tehran Stock Exchange website. (Photo credit: Wikipedia)

Using stock market charts involve analyzing the stage in which the stock is residing, the trend of movement of the stock, the volume and many more factors. These analyses in addition to having insights about the waves, the trends, the strength of the trends and more importantly the know how of the relatively modern candlestick charting which gives a better understanding of the stock market situation, actually answers the question as to how to use stock market charts. These understandings from the stock market charts eventually lead to better decision making on part of the investors as in keeping track of high performing stocks and investing in them accordingly for higher returns in the future.

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