How to Work With One-Day Stock Charts
There are two different camps in terms of investment analysis: technical and fundamental. Fundamental analysis is the process of valuing stocks based on financial analysis by looking at different ratios and comparing them against other companies in the same industry. Technical analysis looks to find trends in historical price data. The most popular tool for technical analysis is the chart.
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Instructions
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Go to Yahoo! Finance. Yahoo! Finance is rated No. 1 in popularity for investment research by Alexa.com. Input the ticker symbol GOOG in the Quote Box and click Get Quotes.
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Scroll down the left hand pane and click on Basic Tech Analysis under Charts. Next to the word Range select "1d" for one day. The thin blue line is the price chart.
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Click on "5d" next to moving average. A moving average provides an average price to compare current prices against. This line should be red. The five-day moving average should be slightly less volatile than the one-day price chart. It is a good way to see how prices have been trending over a certain time period as well.
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Select an index to compare the stock against and click compare. You can compare it again the S&P 500, Dow Jones Industrial Average or Nasdaq. Comparing it against the one-day price chart for Google provides a basis of comparison against the broader market.
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Click on Volume, next to Indicators. The volume indicator will appear at the bottom of the chart. Volume tells you how many orders are being opened and closed for Google during the day. It is also a good way to gauge the strength of intra-day price moves. High volume is indicative of a strong price movement and vice versa.
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Comments
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very good post, I was really searching for this topic as I wanted this topic to understand completely and it is also very rare in internet that is why it was very difficult to understand. thank you for sharing this. Regard Stock Market.
