How to Read a Stock Chart – Intro to Technical Analysis

Video Summary

The article discusses the basics of technical analysis, a method used by traders and investors to analyze and predict the behavior of financial markets. The author explains that technical analysis is not a science, but rather a way to identify patterns and trends in stock prices. The article highlights the importance of understanding the three inputs that lead to a buy or sell decision: fundamental analysis, qualitative analysis, and technical analysis.

The author explains that fundamental analysis looks at a company’s financial statements and ratios to determine its value, while qualitative analysis considers intangible factors such as a company’s reputation and management team. Technical analysis, on the other hand, focuses on the patterns and trends in a stock’s price movement.

The article provides an overview of some common technical analysis tools, including candlesticks, trade volume, simple moving averages, and technical indicators such as MACD and RSI. The author also discusses the importance of understanding the concept of support and resistance levels, which are areas where a stock’s price tends to bounce off or get stuck.

The article concludes by providing a live example of how to read a stock chart using Yahoo Finance and TradingView. The author uses Apple’s stock price as an example, showing how to identify trends, support and resistance levels, and technical indicators. The article aims to provide a basic understanding of technical analysis and how it can be used to make informed investment decisions.

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