What are some useful tips for following real-time stock charts?


Quick Answer

Using real-time stock charts that offer clean interfaces and learning technical analysis are two useful tips, as seen on StockTrader.com and Investopedia. Candlesticks are a technical analysis technique.

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Full Answer

StockCharts, Yahoo Finance and TradingView are three online real-time stock chart applications that StockTrader.com suggests for their simple design. The website claims that StockCharts is the most widely-used free stock chart service for financial bloggers. The website also offers a paid subscription service that consists of historical charts and detailed analysis. Yahoo Finance and TradingView are two other alternatives with clean interfaces and allow investors to adjust chart content to filter out undesired data.

Applying techniques of technical analysis may help investors turn a profit, as suggested by Investopedia. Technical analysis operates on three assumptions: the market discounts everything, prices move in trends and history tends to repeat itself. As such, those practicing technical analysis assume that market data reflects fundamental factors, price movements are likely to be in the same direction as they have been and that the markets are repetitive by nature. The alternative method is fundemantal analysis and consists of analyzing the actual performance and the profile of a company to predict its stock price at a future date.

Bar and point-and-figure analysis systems, also called candlesticks, are methods used in technical analysis, adds Investopedia. The technique consists of drawing a candlestick by using the opening and the closing prices of the stock as the top and the bottom of the candle and then placing the highest price above and the lowest price above the candle. If the body is black or red, the stock lost value. If it's white or green, the price rose. When candles with white bodies line up, a technical analyst assumes that it's a bullish market and considers investing in the stock.

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