Stock market trading has become widely popular among the general public. Earlier, seasoned traders were entirely involved in trades and stocks. Still, with the introduction of the stock market trading app concept, more and more people are becoming aware of the various benefits of stock trading.
A stock market app is loaded with impressive features to help budding traders make wise stock market decisions. One of these features is the ability to access live stock charts. But why are these charts important? Let’s find out.
What’s a stock chart?
A stock chart tells you about a stock, such as its current price, how it’s been changing, and its highest and lowest prices in the past. It also shows how many shares have been traded and any dividends. Chart patterns are important in technical analysis, which looks at stock trends and patterns on charts to identify investment opportunities.
Learning to read and understand stock charts through a stock trading app helps you see how well a stock is doing and where it might be headed. This can give you an idea of how it might do in the future. The details on a stock chart can help investors decide if a stock is worth investing in and make smarter choices.
Some Common stock chart terms to know
When learning how to read stock market charts, look for the following terms:
- Ticker symbol—
This symbol represents a company stock. The ticker symbol is crucial as all the stocks listed in the market are assigned a unique ticket symbol. This means that when you use your trading account to invest in a company, a ticker symbol must be used to place the order.
- The opening price
As the name suggests, it is the price of the stock at the opening of the market.
- Closing price
The stock price when the trading hours are closed during regular stock market hours. Remember, if the closing price for a stock is higher compared to yesterday’s close, it shows an upward trend. If the price is lower, it’s a downward trend.
- The previous close
It is the price at which the stock was closed on the previous day.
- The day’s high and low
These are the highest and the lowest prices of a stock between the opening and the closing hours of the day.
- The 52-week high and low
It is similar to the day’s high and low, but here, the interval is 52 weeks long.
- Trading volume
This is an important term in shares and option trading as it refers to the number of total shares traded during working hours.
- Trend line
On a chart, it is a straight line connecting two or more price points. It also extends into the future to act as a line of resistance or support.
Conclusion:
A stock trading and investment app is filled with the latest features to help you get the best trading experience. This article was framed to make you understand the importance of stock trading charts and why you should learn to read them. Now that you know the basics, put on your reading glasses and learn the whole process thoroughly.