A stock market chart is made up of data about the values and prices of stocks.
These information have been recorded and monitored closely over a period of time, it helps to analyze the performance of a company's stock.
Learning how to read stock chart is the only way to go, if you want to achieve maximum success in stock trading.
Learning how to read stock chart can be done in different ways, but they all share the same mathematical axis.
The price is plotted on the vertical axis of the chart while the division of time is on the horizontal axis.
Line chart: these are the most common and easiest chart to read in the stock market.
They are not very useful to the day trader as they do not show open and close prices, as well as the highest and lowest prices at which stock were traded.
But they are very good in spotting trend.
Basically, there are various types of stock chart and it is important to know how to read them.
In other words, every trader should know the chart that works well in his own area of trading.
What works for a long time trader may not work well for a day trader.
The importance of learning how to read stock market chart can not be over emphasized.
This is because; they are the very bread and butter of a stock trader's livelihood.
In fact any stock trader who wants to achieve success must not do without it.
As you learn how to read chart to predict price movement in the future, you will need more than just the ability to spot trends, since it may behave as if it is rising now, and all of a sudden take a downturn.
In order to lessen this risk, it is appropriate to supplement your information with consensus of other expert, financial update and stock market news.
There is also this new invention that has found it way into the market in the recent years: The market robot.
It is being used by professional traders to make money every day.
The good news is that you don't need a great deal of experience or time to set it up.
All the work has been done for you by the programmers, what you need to do is to invest accordingly and start making money.