2007-06-24 02:11:33 · 4 answers · asked by r sharma 1 in Business & Finance ➔ Investing
There are literally hundreds of indicators to choose from to interpret the technical aspects of chart reading and would take volumes to explain. There are moving average crossovers, candlesticks, doji's, breakout patterns, cup and handles, rising wedges, etc, etc. You need to research and find what works for you. Just like a pilot has to file a flight plan in order to fly from point A to point B, you need to have an entry point and exit point plan.
A good classic book you can get at your public library is, Technical Analysis of Stock Trends by Edwards and MaGee. This will explain the technical approach, charts, dow theory, reversal phenomena, support and resistance, gaps, cosolidation formations, trendlines and channels
There simply is no easy way to learn this except by spending hours and hours reading and experimenting. But after you've accumulated this knowledge, you'll be rewarded by making solid fundamental and technical decisions on your investments.
Good luck to you.
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2007-06-24 03:05:58 · answer #1 · answered by SWH 6 · 1⤊ 1⤋
I don't completely follow your question. I guess the basic answer is... you learn.
Understanding charting starts off with some easy concepts like support and resistance. Then you move into "moving averages". After the basics it gets much more involved. I've been investing in stocks for 30 years and it's only the last year that I've gotten into understanding charting. It has really helped.
Read a few good books on "technical analysis". Then buy the "bible" of charting, John Murphy's "Technical Analysis Of The Financial Markets".
I've been able to time my entries and exits much better. I've made money by buying and selling in "channels" that I've seen on charts. I've avoided some big losses by getting out in time.... all because of the "charts".
After a year I still think of myself as a "newbie".
Hard work pays off....
Good luck!
2007-06-24 02:27:48 · answer #2 · answered by Common Sense 7 · 1⤊ 0⤋
The best way to learn to read the charts is to practice. The more charts you review, the better you'll get at reading them.
You can gain the knowledge from a number of sources, books, courses, people, etc. But looking at charts through other people's eyes can really help too. Lots of newsletters, etc are readily available to help in this area.
For learning basics, there's lots of great books on the topic including Visual investor by John Murphy or Technical Analysis Course by Thomas Meyer.
You can also get a feel for how stocks are evaluated from a couple of sites such as americanbulls.com or stockta.com
Hope that helps!
2007-06-24 02:32:48 · answer #3 · answered by Yada Yada Yada 7 · 2⤊ 0⤋
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2017-03-01 11:40:09 · answer #4 · answered by ? 3 · 0⤊ 0⤋