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  • Article Check - Understanding Stock Charts - A Few Basic Tips

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    tance) is buyers enter the market around the floor price to stabilize the price and possibly drive the price back up. When a stock is reaching its ceiling, sellers enter the mar
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    Stock charts can provide a wealth of information if you know what to look for. Stock charts also come in many different forms, styles, and types, but a few basic charting skills can be used universally across all charts. In addition, when used in conjunction with other stock indicators these basic charting skills can help you greatly improve your trading results.

    Some of the most important pieces of information that can often be determined from charts are resistance levels. Resistance levels are price levels that a stock has a difficult time passing through. The bottom resistance is called a floor while the upper resistance is called a ceiling. Basically, what happens at a floor (bottom resistance) is buyers enter the market around the floor price to stabilize the price and possibly drive the price back up. When a stock is reaching its ceiling, sellers enter the mark

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    can be used universally across all charts. In addition, when used in conjunction with other stock indicators these basic charting skills can help you greatly improve your trading results.

    Some of the most important pieces of information that can often be determined from charts are resistance levels. Resistance levels are price levels that a stock has a difficult time passing through. The bottom resistance is called a floor while the upper resistance is called a ceiling. Basically, what happens at a floor (bottom resistance) is buyers enter the market around the floor price to stabilize the price and possibly drive the price back up. When a stock is reaching its ceiling, sellers enter the mar

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    Some of the most important pieces of information that can often be determined from charts are resistance levels. Resistance levels are price levels that a stock has a difficult time passing through. The bottom resistance is called a floor while the upper resistance is called a ceiling. Basically, what happens at a floor (bottom resistance) is buyers enter the market around the floor price to stabilize the price and possibly drive the price back up. When a stock is reaching its ceiling, sellers enter the mar

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    k has a difficult time passing through. The bottom resistance is called a floor while the upper resistance is called a ceiling. Basically, what happens at a floor (bottom resistance) is buyers enter the market around the floor price to stabilize the price and possibly drive the price back up. When a stock is reaching its ceiling, sellers enter the mar
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    tance) is buyers enter the market around the floor price to stabilize the price and possibly drive the price back up. When a stock is reaching its ceiling, sellers enter the market stopping the upward momentum and possibly drive the stock price back down. The best way to spot resistance levels on a stock chart is to find prices where the stock moves sideways. For example, if a stock is trading around 35 and then trades down to 30 but then begins to move sideways at 30 and eventually heads back up in price, then 30 is probably a price floor. The more times a resistance level is tested, the stronger it becomes. However, if a resistance level is broken it usually becomes resistance in the opposite direction. For example, if the stock mentioned above broke through its price floor of 30 then the price floor would become the price ceiling. Keep in mind that resistance levels ar

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